12. Maintaining a close liaison with the Central Ministries, Planning Commission, State Governments, Financial Institutions and other organisations concerned with the development of the SSI.
13. Evolving, implementing and coordinating policies and programmes for development of the SSI as ancillaries to large and medium industries.
19. Pollution control boardDescription:<br />In our research we found that there most of the companies are taken permission from local authority and panchayat which are 73 companies (36.5%) out of 200 companies, 22 companies (11%) from registrar of partnership/ society/ company, 69 companies (34.5%) from tax authorities, 3 companies (1.5%) from pollution control board and 30 companies from other authorities.<br />Table: <br />OptionNo. of CompaniesPercentage(A) local municipality & panchayat 73 36.5%(B) registrar of partnership society/ company 22 11%(C) tax authorities 69 34.5%(D) pollution control board 3 1.5%(E) any other authority 30 15%<br /> <br />Conclusion:<br />In our research all companies are take permission from government, which are good for the society or customers. <br />Q7. Was there any difficulty during initiation of business?<br />Introduction:<br />This question show the difficulty during initiation of the business in small scale industries, also specify the difficulties during initiation of business, which type of difficulties they are faced in the beginning of the business.<br />Description:<br />In our research most of companies are face difficulties during their initiation. Out of 200 companies 103 companies (51.5%) face problems in the beginning of the business and 97 companies (48.5%) not face any difficulties in the beginning of the business. <br />Table:<br />OptionNo. of CompaniesPercentageYes10351.5%No9748.5%<br /> <br />Conclusion:<br />In our research most of the small scale industries face problem like financially, in selling of the product, infrastructure etc in the initiation of the business. <br />Q8.Annual cost of regulatory compliance in running business.<br />Introduction:<br />This question shows the cost involve in regulatory compliance in running business, it is also a difficulty faced by the enterprise because a huge amount of money involve in regulatory compliance. In this question how much cost involves in regulatory compliance by small scale industries is shown. <br />Description:<br />In our research most of small scale industries are between 1000- 1lakh rupees, 121 companies (60.5%) out of 200 companies, between 1lakh-20 lakh rupees 33 companies (16.5%), between 40lakh-60lakh rupees 12 companies (6%), between 20lakh-40lakh rupees 11 companies (5.5%), 80lakh-1crore 2 companies (1%), and between 60lakh-80lakh rupees no companies are there. Most of the small scale industries’ annual cost of regulatory compliance is between 1000-1 lakh rupees. <br />Table:<br /> <br /> RangeNo. of CompanyPercentage1000-1lakh12160.5%1lakh -20lakh3316.5%20lakh-40lakh115.5%40lakh-60lakh126%60lakh-80lakh00%80lakh-1crore21%<br />Conclusion:<br />This research on small scale industries we found 121 companies out 200 companies’ annual cost of regulatory compliance in running business, most of the companies not involve huge amount of cost in regulatory compliance. <br />Q9. Is information on different promotional schemes of the Government easily available?<br />Introduction:<br />This question show is information on different promotional schemes of the government easily available to the small scale industries or not because many times companies are not aware about the government promotional schemes. <br />Description:<br />In our research of small scale industries 106 companies (53%) out of 200 companies can easily known about the government promotional schemes, and 94 companies (47%) cannot easily available to small scale industries about the information on different promotional schemes of the government. <br />Table: <br />OptionNo. of CompaniesPercentageYes10653%No9447%<br /> <br /> <br />Conclusion:<br />In our research even now most of the small scale industries are not informed about different promotional schemes of the government, need more development in small scale industries. <br />Q10. Number of computers the enterprise uses. <br />Introduction:<br />This question shows the level of technology use by companies. This is research on small scale industries therefore we have to know the use of computer in the company, this show us how much they familiar with computer technology. <br />Description:<br />In this research we found that there are very less number of computers is use by company, most of the companies out of 200 companies 11 companies (5.5%) are not using computers, between 1-10 computers 181 companies (65.5%) are using computers, between 11-20 computers 4 companies (2%) are using computers, between 21-30 computers 2 companies (1%) are using computers, between 31-40 computers 1 company (0.5%) is using computer, between 41-50 computers 1 company (0.5%) is using computer.<br />Table:<br />RangeNo. of CompaniesPercentage 0115.5%1-1018165.5%11-2042%21-3021%31-4010.5%41-5010.5%<br /> <br />Conclusion:<br />This is small scale industries therefore most of the companies are so small therefore they didn’t have more than 1 computer and some companies have enough for their company.<br />Q11.Is the Enterprise allowed to file Online Information to the Regulatory Authority<br />Introduction:<br />This question also to known the level of technology use by the companies. In this question to know is the enterprise allowed or not to file online information to the regulatory authority. <br />Description:<br />In this research we found that 108 companies (54%) out of 200 companies are allowed to file online information to the regulatory authority, and 92 companies (46%) are not allowed to file online information to the regulatory authority. <br />Table: <br /> <br />OptionNo. of CompaniesPercentageYes10854%No9246%<br /> <br />Conclusion:<br />In our research most of companies are allowed to file online information to the regulatory authority, but most of the companies are allowed also for that companies need more developing programs.<br />Q12.Initial Capital of the Enterprise.<br />Introduction:<br />In this question how much initial capital of the enterprise are use by small scale industries. It shows the capital of the enterprise which determines the ratio stability in economy. <br /> Description:<br />In our research out 200 companies 118 companies (59%) are between 1lakh- 50lakh, between 1crore-50crore 65 companies (32.5%), between 1000- 50thousand 6 companies (3%), between 50thousand-1lakh 6 companies (3%), between 50lakh-1crore 2 companies (1%), between 50crore-100crore 2 companies (1.1%) and between 100crore & above 1 companies (0.50%). Most of the companies be are between 1lakh-50lakh 118 companies out of 200 companies of our survey. <br />Table:<br />RangeNo. of CompaniesPercentage0-50thd63%50thd-1lk63%1lk-50lk11859%50lk-1cr21%1cr-50rc6532.5%50cr-100cr21.10%100cr & above10.50%<br /> <br />Conclusion:<br /> In our survey most of the companies are having initial capital between 1lakh-50lakh, which is a good amount of capital for small scale industries.<br />Q13.Present Capital of Enterprise.<br />Introduction:<br />This question concern with the present capital of the enterprise, which they recently using. It shows the financial position of the companies, and also show in which they are lacking, to make them financial strong. <br />Description:<br />In our survey most of the companies are between 1crore-50crore 110 companies (55%), between 1lakh-50lakh 72 companies (36%), between 50lakh- 1crore 9 companies (4.50%) , between 50thosand-1lakh 1 company (0.50%), 100crore & above 1 company (0.50%). In our survey most of the companies are having good present capital. <br />Table:<br />RangeNo. of CompaniesPercentage0-50thd73.5%50thd-1lk10.50%1lk-50lk7236%50lk-1cr94.50%1cr-50cr11055%50cr-100cr00%100cr & above10.50%<br /> <br /> <br />Conclusion:<br />In our survey of small scale industries, most of the companies are having good present capital, having good financial position of the enterprise. They are between 1crore-50crore means having good amount of present capital. <br />Q14.Audited Profit/ loss of the business.<br />Introduction:<br />This question is concern with audited profit/ loss of the business, which shows the official inspection of an organization’s accounts, during that time their profit and loss of the business. <br />Description:<br />In our survey most of the companies between 1lakh-20lakh 136 companies (68%), between 1000-1lakh 11 companies (5.5%), between 20lakh-40lakh 9 companies (4.5%), between 40lakh- 60 lakh 5 companies (2.5%), between 80lakh-1crore 2 companies (1%), and between 60lakh-80lakh 1 company (0.5%), most of the company having their audited profit/loss of the business between 1lakh-20lakh 136 companies out of 200 hundred companies of our survey.<br />Table: <br /> Range No. of CompaniesPercentage1000-1lakh 115.5%1lakh-20lakh 13668%20lakh-40lakh 94.5%40lakh-60lakh 52.5%60lakh-80lakh 10.5%80lakh-1crore 21%<br /> <br />Conclusion:<br />According to our survey audited capital of the most of the enterprise is near 1lakh-20lakh which is fair audited profit/loss of the business. Because of the small scale 11 companies are between 1000-1lakh, but according to their scale its good.<br />CHAPTER: 7<br /> Conclusion<br />The SSI sector plays a pivotal role in the Indian economy in terms of its contribution to employment, national income and exports of the country. The sector has been growing by leaps and bounds since the initiation of economic planning in India in spit of stiff competition from the large-scale industries as well as the MNCs. This is evidenced from the number of registered units which went up from 16000 in 1950 to 36000 units in 1961 and since then the growth has been rigorous. During the last decade alone, the SSI sector has progressed in terms of aggressive diversification from the simple consumer goods to the manufacture of many sophisticated and precision products like electronics control system, micro wave components, electro medical equipment, TV sets etc.<br />However, the sector has not been free from problems either internally or externally. The government policies have been supportive but inadequate. The resource base is just manageable. The technology and the skilled human power have been insufficient in terms of supporting the growth of the sector. The internal problems of the sector are precarious. The management structure is viewed to be haphazard and unprofessional. Given such constraints, the SSI sector of the country is suspected to have been weak in such areas like corporate governance and sustaining growing competition emanating from the large scale sector and the multinationals.<br />In the view of the above, the present study was designed to evaluate the issues related and the problems confronted with the SSI. The study was done on the basis of primary survey covering 307 SSIs spread over the Gujarat State. From the analysis the following main conclusions were made.<br />With regard to the permissions that the SSIs need to take from the different authorities in order to make the activity legal and smooth, the following observations were made. Majority of the companies need the regulatory permission from the local authorities. Some enterprises like Timber, Food Product mfg., Plastic Mfg., Chemical industry etc. have to take permission from other authorities like Forest Department, Health Department, Food and Drugs Department, Bureau of industrial act, Scale & Measurement Department. It is found that the Government decides the specific regulatory for specified areas like in Gandhinagar SSIs have to take permission of Notified Area Council whereas in Ahmadabad, SSIs have to take permission of Ghumasta Dhara.<br />When asked whether any difficulty was faced during the introductory stage of business it was found that around 65% of the surveyed enterprises did not face any difficulty during the initial stage. This means that establishment of SSIs is a bit easy in Gujarat.<br />An analysis with regard to cost of production reveals some interesting facts. Companies which are in the field of job work undergo an average cost ranging between Rs. 5,000 and Rs. 15,000 whereas that engaged in manufacturing it ranges between Rs. 25,000 and Rs. 50,000. The cost decomposition analysis revealed that the compliance cost of a company under study includes accountant’s fees, expenses towards renewal of tax authority, lawyer fees, and tax form filling costs.<br />Promotional policies of the government are generally viewed to be a supportive tool for growth in a competitive business environment. This developed a curiosity in us to know as to whether it works for the SSIs. From the survey done around 43% of SSIs have reported to get access the information on different promotional schemes of the Government easily. The remaining 57% of SSI in Gujarat are not even aware about these schemes.<br />The chief reasons found for the above observation are as follows. Around 45% of the companies do not use computer which means that they are not connected to the modern information system. Even though the remaining companies use computers, around 46% of them use only one and 6.5% use two irrespective of the amount of business done. This, in any case, is quite inadequate in the face of the current IT movement and the role played by computerization in business growth. Not only the <br />Number of computers, the magnitude and purpose of their use are seen to be quite poor. This is a serious road-block of the SSIs as they hardly able to capitalize the benefit from the government’s permission of filling of GST and CST online.<br />The research reveals amazing facts with regard to the present capital status of the SSIs of Gujarat. For about 54% of the SSIs the present capital is found to be more than Rs. 10, 00,000. This could be partly contributed by the high inflation rate and alarmingly increasing technology cost.<br />Profit is the driving force of business. This tempted us to look into the nature and extent of profit made by the SSIs of the state. The survey disclosed that around <br />46% of surveyed companies have profit below Rs. 1, 00,000. The loss occurring to the SSIs in general is negligible (1.3% of total). It can therefore be concluded from the above fact that the SSIs do not face any serious problem with regard to earning profit. This could be mainly due to large population throwing a large market for SSI products in the country. However, on being asked whether they will continue earning big profits even during the coming year, majority of them opined that their profit may come down due to the onset of recession.<br />Management structure assumes a great deal of importance in the functioning of a business entity – small or big. Theoretically, management structure comprises of three levels: Top, Middle and Bottom. However, it has been discovered from the survey that SSIs in Gujarat do not generally follow such type of a management structure. They normally function informally. Even though some of the surveyed companies are seen to function following a management structure yet they do not confine strictly to a systematic framework. On being asked the reason, many of the respondents viewed that the traditional management structure is, by and large, not required or advisable on account of it being expensive and time consuming.<br />As regards ownership, the result is as per our expectation i.e., unlike large scale industries, in SSIs the ownership is not found to be separated. This was found true for almost 99% of the enterprises surveyed.<br />Skill and professional way of working create a marked difference in the growth and sustainability of enterprises. This made us peep in to the extent of skill and professionalism in the SSI sector of Gujarat. The survey result established that <br />90% of owners and managers of the SSIs are not professionally qualified and majority of the laborers are unskilled.<br />Meaning full involvement of workers in the managerial decision making is always proved to be beneficial for any business organization. However, in case of SSIs this may not be expected much. Yet the study revealed a satisfactory level of workers participation in management in the SSIs of the state. Around 42% of the employees are accepted to give suggestions to the owner. This is seen mostly in case of SSIs engaged in the fields of engineering, wooden patent, and other manufacturing business.<br />In nutshell, the study turned out to be comprehensive, suggestive and path showing for the readers, researchers and government policy makers.<br />BIBLIOGRAPHY<br />Websites:<br />www.laghuudhyog.com<br />www.ssiinvestment.com<br />www.msme.gov.in<br />www.industrialsector.com<br />Newspapers:<br />Economics TIMES<br />Business Standard<br />Financial Express<br />Books:<br />Indian Economy ( Rudar Dutt & KPM Sundaram)<br /> <br /> <br /> <br />