1. UNIT 1 B
ROLE OF ENTREPRENEUR

2. ROLE OF ENTREPRENEUR IN DEVELOPMENT
EMPLOYMENT OPPORTUNITIES
UTILISING THE IDLE MAN POWER
RESTRICT MONOPOLISTIC ACTIVITIES
UTILISATION OF UNUTILISED AND SCATTERED RAW MATERIALS
PROPER AND EFFECTIVE UTILISATION OF MATERIALS, LABOUR, CAPITAL , SKILL AND KNOWLEDGE

3. CREATION OF NEW INDUSTRIAL CLIMATE THROUGH OUT THE COUNTRY
BALANCED ECONOMIC GROWTH
DEVELOPMENT OF SUPPORTING INFRASTRUCTURE
EARN FOREIGN EXCHANGE
GENERATE NATIONAL INCOME

4. SMALL SCALE INDUSTRIES
An undertaking having an investment in fixed assets, in plants and machineries, whether held on ownership term or by lease or by hire-purchase is more than 25 lakh but does not exceed Rs. 5 crore , will be qualified for a small scale industrial unit.

5. Characteristics of SSI
Registered under local DIC ( District Industries Centre)
Investment in plant and machinery limited to Rs. 5 crore
Operate as per the rules of State Government notified from IPR ( Industrial Policy Resolutions )

6. Small scale industries
Volume of production is small
Area of operation is small
Labour intensive
Size of industry is small
No large number of formalities required
Produce products reserved for SSI
Located to either nearer to market or source of raw material

7. Types of SSI Resource based SSI Demand based SSI Ancillary based SSI
Subsidiary SSI
Linkage based SSI
Export-oriented SSI
Technology based SSI
Preference based SSI
Policy based SSI
Competence based SSI
Import-Subsitute based SSI

8. Government policies for SSI
The central and state government have their industrial policies for the promotion of small
scale industries.
The central government has a separate ministry
for small scale industries and many state governments have also administrative set up for
the development of SSI.

9. Policies of state governments
Opened DIC ( District Industrial Centres) as per the guidance of Central Government
Industrial estates are created
Industrial plots or sheds are made available
Easy financial help to SSI from state financial
corporation
Other facilities include
Sales tax concessions/exemptions
Water tax concessions/exemptions
Marketing assistance

10. Facilities by central government
The central government has created many
institutions for extending different facilities
and benefits to SSI
SISI Small Industries Service Institute
SIBBI Small Industrial Development Bank of India
NABARD National Bank for Agricultural and Rural
Development
NSIC National Small Industries Corporation
IDBI Industrial Development Bank of India

11. SOME FACILITIES ARE: Help in procuring machineries and raw materials.
Extend help in expansion, modernization, upgradation of SSI.
Help to rehabilitate the SSI.
Provides easy credit to SSI through commercial banks.
Govt. has reserved about 800 items to be produced only by small scale sector.
Act as guarantor against loans and for purchase of plants and machineries.

12. LARGE SCALE INDUSTRIES AND ECONOMIC DEVELOPMENT
Developing countries invite entrepreneurs of other developed countries to come to their countries to start LSIs for which the government provide all possible help so that:
Their resources are faithfully utilized.
There is increased industrial activity.
There is more scope of employment.
There is inflow of foreign exchange, foreign technology etc.
There will be increased revenue in the form of different taxes.
It will open up the door for export of products to other countries.

13. Role of ssi in national economy
Greater employment opportunities.
Provide more than 45% of the production of goods and services.
Responsible for lot of foreign exchange earning for the country.
Provide more than two-third of the employment in industrial sector.
Govt. has opened 391 specialized branches of public sector banks.
Govt. has started a scheme called LUCC ( Laghu Udyomi Credit Card) for friendly credit facilities.

14. Steps to start ssi Preliminary stage: Studying business environment.
Meeting entrepreneurs, people and experts.
Searching business opportunities.
Decision Making stage:
final selection of business opportunity.
Consulting DIC, SISI, banks, licensing authorities.
Deciding the size, type, technology of the project.

15. Contd. Decide the location and final site.
Preparation of project report.
Planning stage:
Application for acquisition of land, loans, licenses, clearances from central govt. state govt. and local authorities., assurance from banks for finance and provisional registration.
Preparing plans for acquiring plants, machineries, tools, equipments, factory buildings and detailed project report.

16. Implementation stage:
Acquisition of land
Development of site
Construction of buildings and other infrastructure
Placing orders for plants, machineries, tools, equipments, furniture and fixtures
Arranging of water and electricity connection
Recruitment, selection, training and placement of man power
Procurement of raw materials and finalize
the marketing channel
Carry on trial production and test marketing

17. Managerial stage:
Carry on commercial production, advertising and marketing activities
Appoint dealers, wholesalers, agents, arrange showrooms
Evaluate the field performance of product and examine the consumer’s response
Ensure growth and generate profits
Repayment of loan and interest