Abstract
Small scale enterprise is an integral part of the Indian industrial sector. The SSI’s generate production at low capital cost, mostly use indigenous raw materials, utilize local skills, widen the entrepreneurial base, facilitate balanced regional growth and prevent the migration of labour to the metropolitan areas. Lack of capital, excessive dependence of agriculture and abundant supply of manpower are the characteristic futures of many developing countries in Asia. India face several problems such as lack of availability of adequate and timely credit, high cost of credit, lack of collateral requirements, limited access to equity capital, problems in supply to government departments and agencies, procurement of raw materials at a competitive price, issues of storage, designing, packaging and product display, lack of access to global markets. “Industrialization is a process of economic development where an increasing proportion of home resources is mobilized to establish a technologically up to data and diversified economic structure. This economy is characterized by dynamical processing industry producing means of production and consumer goods suitable for making the fast development of the total national economy. Before independence the pattern of industrial development in India was marked by a heavy concentration of industries in a few regions. Even after independence, when industrialization was accepted as a means of economic development, industrial investment started to flow towards the existing cities with industrial infrastructure while backward regions of the country continued to lie behind. The traditional nature of this process is reflected in the diversities of these industries. Some small-scale units employ simple skills and mechanism while many other units use modern and sophisticated technology. Small scale industries can be started with lower investment and provide employment opportunities to people. Small scale industries are relatively suitable for smaller markets because these markets need customized products in smaller quantity. They play an important role in employment creation, resource utilization and income generation and helping to promote changes in a gradual and phased manner. They have been given an important place in the framework of Indian planning since beginning both for economic and ideological reasons.