Entrepreneurship Development Program

Entrepreneurship Development Program

Small BusinessDefinition:- A small business is a privately owned and operated business. A small business typically has a small number of employees. It is the Designation for firms of a certain size which fall below certain criteria (that varies from country to country) in terms of annual turnover, number of employees, total value of assets, etc. The SSI has 40% share in the total Industrial output and 35% share in Exports. Those Firms having investment in Plant & Machinery upto rs. 5 crores are SSI.Nature/ Features/ Characteristics of Small BusinessIt has relatively small share of the market in which it operates It often caters to a specialized market It is run by its owners or part owners It's management is personalized rather than formal It is not part of a larger groupImportance/ Significance/ Advantages of small business in the economyAs we all know that small firms are important for the economy.(Revenues/Taxes)Small businesses employees majority of the workforce in any country.Every business starts small.Small businesses are flexible and respond easily to changes in demand.Small firms often cater to local demands.In difficult economic times, such as a recession, small business can be an important source of providing employment.Small firms provide competition to larger firms through providing customized goods and services.Small firms provide niche products and services which a larger firm might overlook.

Conceptual Framework of Small Business in India

Small businesses face the following problemsUnder capitalizationPoor debt managementLack of managerial skills of the ownerCannot retain experienced staffUsually find it difficult to attract skilled staffPoor stock managementWhat distinguishes a small business from a large business? Turnover (Mostly) Size/ OwnershipNature of Management and Number of employees (25 > SSI