Small Business Test - 25

Food Products, Cotton Textiles, Paper Products and Printing are part of small scale sector.

In the 20th Century, economist Joseph Schumpeter focused on how the entrepreneur's drive for innovation and improvement creates upheaval and change. Established ways of doing business has been transformed by creation of new and better ideas. According to him" Entrepreneurship is essentially a creative activity or it is an innovative function".

Small industries development bank of India (SIDBI) set up as an apex bank to provide direct/indirect financial assistance under different schemes, to meet credit needs of small business organizations.

The ancillary small industrial unit can manufacture parts, components, sub-assemblies, tools or intermediate products for the parent unit. A tiny unit is defined as an industrial or business enterprise whose investment in plant and machinery is not more than Rs. 25 Lakhs.

ISO 9000 is concerned with Quality. There is limited access to markets of developed countries due to the stringent requirements of quality certification like ISO 9000.

Exemption from paying taxes for 5 or 10 years is known as Tax Holiday. Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal area

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is being implemented by the Union Ministry of Agro and Rural Industries (ARI) and its organizations and institutions, in collaboration with State Governments, their organizations concerned, non-Governmental organizations, etc.

Productivity per employee is relatively high and employee turn over is generally low is not true in relation to labour as a problem for small businesses.

A small scale industrial undertaking is defined as one in which the investment in fixed assets of plant and machinery does not exceed rupees one crore. However, to cater to the needs of small industries whose thrust is on export promotion and modernization, investment ceiling in plant and machinery is rupees five crores.

The problems of traditional small scale units include remote location with less developed infrastructural facilities, lack of managerial talent, poor quality, traditional technology, raw material and inadequate availability of finance.