SSI Full Form | Small Scale Industries (SSI)

SSI means Small Scale Industries. These are also known as micro-level industries. They are involved in the manufacturing, production, and rendering of the services on a small scale. SSI falls under the guidelines specified by the Government of India and works with small enterprises where the number of workers, employees as well as machinery used by them is less in number. A lot of labor and workforce is required to work for the production of these services which creates huge employment. 

Small Scale Industries (SSI) – Increasing Per Capita Income

Small Scale industries help the workers to get employment opportunities which increases the per capita income and develops the overall economy of the country. They make optimal resource utilization and need less investment capital. A lot of exports in India come from small-scale industries which increases the export rate drastically. These industries create crores of possibilities for employment as well as provide minimum capital requirements due to which they get tax benefits from the government. This highly improves the employment rate. Along with this, they also strengthen the financial sector which is very critical for our nation. So, these industries are considered to be the lifelines of the Indian Economy. 

Small Scale Industries (SSI) – Development Method

The small-scale industries play a necessary role in our country which is filled with a large workforce and aspiring entrepreneurs. Most of the developed successful businesses today are the expansion of their small businesses once. Millions of individuals are part of these industries. The Government encourages Small scale industries by providing funds and subsidies to these businesses. They can be set up both in urban and rural areas due to which they can compete even with large-scale industries as well as multinational companies.

These enterprises have agile developmental methods as they are easily adaptable and flexible to the changes and use all the natural resources to ensure minimum wastage. They try to produce better quality products at low prices. These industries encourage women to participate in the work and also increase the efficiency of the employees as well as support the growth of the large scales industries massively by providing them with all the components required by them. 

SSI contributes a total of 40% to the gross industrial output which has tremendously increased the total production value in our economy. The Small Scale Industries enable people to live with dignity as it eliminates poverty by providing many opportunities to work and get a proper income for their living which abolishes the inequalities in society and flourishes its welfare.

How Are Small Scale Industries Formed?

Forming small-scale industries involves going through a lot of stages. Firstly the entrepreneur should determine the ownership structure and then they must decide whether they would like to produce or provide any service finally the production choice must be made. After this, the location of the industry set up is to be decided which would be the registered address from which the operations can take place. The latest technology, machinery, and equipment required must be purchased and integrated. 

The power and water supply should also be checked as well. Then to run the business unit a workforce should be employed. After getting all the required raw materials the products can be manufactured and sold to the market after a quality check. Later the entrepreneurs should promote their products to reach a wide range of people.

The small-scale industries are divided into two enterprises:

1. Manufacturing Enterprise

This industry focuses on the production of physical goods, and finished products to be sold in the market. Various Manufacturing processes are followed to create these products. A careful balance of supply and demand is maintained while delivering goods to the marketplace. A few examples of Manufacturing Enterprises are clothing, chemicals, machinery, computers, and electronics.

2. Service Enterprise

This industry focuses on providing services to customers, based on their demands. It requires more public contact. These services are either provided through online apps or physical centers. A few examples of Service enterprises include consultancy, training, advertising, banking, restaurants, hotels, etc.

These Industries Have Two Specific Rules to Follow :

• The manufacturing investment of machinery and plant to produce goods and services should be between 25 lakhs to 5 crores.
• The service providers’ investment in machinery should be between 10 lakhs to 2 crores.

There are Many Profitable Small Scale Industries like :

• chocolates, chips, biscuits, papads
• soaps and oils
• sanitary napkins
• notebooks
• candle making
• disposable plates and cups
• tissue papers
• incense sticks and camphor
• Salon beauty parlors
• boutiques
• ice cream parlors
• Cooking, tailoring
• Online businesses