Information About Small-Scale Industries

by Tamara Wilhite - Updated September 26, 2017
SSIs are the next step above cottage industries.

Small-scale industries, or SSIs, are small employers a step above cottage industries, which are run within the household. SSIs are concentrated in urban areas and villages. They are more efficient than cottage industry but less efficient than large-scale businesses.

Industries

SSIs exist in the manufacturing, services and retail industries. According to “Entrepreneurship Development in Small Scale Industries” by Shiba Charan Panda, as of 2003, SSIs produced 50 percent of the industrial manufacturing product made in India while employing 80 percent of its industrial workers. The book “Employment Generation in Industrial Sector” by M.L. Narasaiah states that SSIs in India produce consumer goods and simple producer goods like hand tools.

Economies of Scale

SSIs have greater access to consumer markets and financial resources than cottage industries. SSIs also sell goods and services to large-scale industrial businesses. SSIs can offer mass-produced regional goods.

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Preferences for SSI in Indian Policy

According to the book “Indian Economy” by T.R. Jain, Mukesh Trehan and Ranju Trehan, India’s government values SSIs for their ability to employee many people with minimal investment. SSIs are also preferred over large businesses because they prevent a concentration of wealth by a few owners.

About the Author

My expertise includes product data management software. I provide first and second level technical support for this class of software as well as write FAQs, user manuals and troubleshooting guides for first level staff. My personal finance expertise has been showcased repeatedly on "The Dollar Stretcher" frugal living website and magazine.

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