MEANING , FEATURES AND ROLE OF SMALL BUSINESS

MEANING:- Small industries refers to that industries in which investment in plant and machinery is minimum 25 lakhs, but doesn't exceed 5 crore. These industries are set up in rural areas for their development and for creating job opportunities.

Such as, Handlooms, Handicrafts, khadi, Powerloom industries etc.

CHARACTERISTICS/FEATURES OF SMALL SCALE INDUSTRIES:-

1- Personal Character: A Small scale unit is generally owned by a single entrepreneur or partnership.

2- Dominance of labour: Small scale enterprises generally use labour–intensive techniques.

3- Limited Investment: A small scale enterprise requires less capital investment, because it does not employ highly mechanised means of production.

4-  Limited Area Of Operation: A small scale enterprise generally operates in a rural area however products are exported all over the world.

5- Engaged in light consumer Goods: The small scale industries are mostly engaged in production of light consumer goods.

ROLE OF SMALL BUSINESS IN RURAL AREAS:-

1- Employment: Small scale industries are labour–intensive so they provide additional employment to men and women.

2- Improves Economic Conditions: By providing employment opportunities, the small scale industries provide more income to people living in rural areas.

3- Promotion Of Artistic And Creative Sense: Small business set up in rural area provides scope for the promotion of Artistic achievement and creativity.

4- Rural Development: Small scale industry set up in rural areas lead to their development.

5- Mobilisation Of Local Resources: Small scale industries facilitate mobilisation and utilisation of local resources which might otherwise remain unutilised.

START UP BUSINESS: A start up is a business in form of company, partnership or sole proprietorship registered in India. These start up company get exemption in income tax for first three years and get registration in a few days and it's annual turnover should not have exceeded rs. 25 crore.

What is the Social responsibilities of business?