Page 222 - DMGT310_ENTREPRENEURSHIP_AND_SMALL_BUSINESS_MANAGEMENT

Unit 14: Sickness in Small Business Enterprises

Notes

Task Visit website www.lagu-udyog.com to know more about the latest
amendments and news about small scale industry in India.

Self Assessment

Fill in the blanks:
11. ………………. had overtaken the units slowly and in stages
spread over a considerable period of time.
12. ………………. of a sick unit comes under process only after the viability study of the
concerned small unit recommends for its revival along with the suggested reliefs or
packages or any other way out.
13. Industrial sickness is a part of the process of……………….
14. If any sick or closed unit wants to avail the benefits under the ………………. -for the
second time it will avail only the difference between the prior availed amount and the
proposed amount under new policy.

15. Sick Industry means such industry, which has been registered by the……………….

Case Study The Button Industry

aking the case of the button industry might surprise readers, but it is worthy of
consideration because it represents rather an unusual case but also one that illustrates
Tvery well the diffusion of small-scale technology. The discovery in developing
countries of similarly specialized technological areas could have important consequences
for economic and technological development.
Buttons began to be imported around the time Western-style uniforms gained currency
with the military, railways, the police departments, and similar groups. Besides buttons
made of metal and bone, those made from shells, which were used for underwear, were
also imported, although India had abundant raw materials of good quality.

Button manufacturing on a modest scale started in India from around 1878. They were
expensive but of high quality, made by metal workers (such as goldsmiths and silversmiths)
using files, whetstones, and punches. The market was extremely small, however, because
of the continued dominance of traditional Indian wear, and, in order to establish a stable
industry, button makers were compelled to turn to exporting their product.
Having noticed the existence of rich raw materials in India, a factory was opened, complete
with an array of machines for making buttons around 1910. It was supplying the Indian
market with “German-made buttons”. The bleaching process used in button manufacturing
had been kept confidential by the engineers, but a Indian processor’s solution to the
problem of bleaching gave Indian buttons, which had been treated as semi-finished goods,
an advantage, thus forcing the factory out of business.

The answer to the question of how this was possible is to be found in the thorough
division of the production process. Production at the factory was broken down into more
than two dozen microprocesses, each of which became a separate job performed by a
Contd...

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