Page 213 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Entrepreneurship and Small Business Management

Notes
Did u know? Besides direct exports, it is estimated that small-scale industrial units contribute
around 15% to exports indirectly. This takes place through merchant exporters, trading
houses and export houses. They may also be in the form of export orders from large units
or the production of parts and components for use of finished exportable goods.
It would surprise many to know that non-traditional products account for more than 95% of the
SSI exports. The exports from SSI sector have been clocking excellent growth rates in this decade.
This has been mostly fuelled by the performance of garments, leather, gems and jewelry units
from this sector. The product groups where the SSI sector dominates in exports are sports goods,
ready-made garments, woolen garments and knitwear, plastic products, processed food and
leather products. The SSI sector is reorienting its export strategy towards the new trade regime
being ushered in by the WTO.
The opportunities in the small-scale sector are enormous due to the following factors:

Less capital intensive
Extensive promotion and support by government
Reservation for exclusive manufacture by small-scale sector

Project profiles
Funding - finance and subsidies
Machinery procurement
Raw material procurement

Manpower training
Technical and managerial skills
Tooling and testing support
Reservation for exclusive purchase by government

Export promotion
Growth in demand in the domestic market size due to overall economic growth
Increasing export potential for Indian products
Growth in requirements for ancillary units due to the increase in number of greenfield
units coming up in the large scale sector. Small industry sector has performed exceedingly
well and enabled our country to achieve a wide measure of industrial growth and
diversification.
The promotional and protective policies of the government have ensured the presence of this
sector in an astonishing range of products, particularly in consumer goods. However, the bugbear
of the sector has been the inadequacies in capital, technology and marketing. The process of
liberalization coupled with government support will, therefore, attract the infusion of just these
things in the sector. Small industry sector has performed exceedingly well and enabled our
country to achieve a wide measure of industrial growth and diversification.

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