Brief notes on the Scope of Small Entrepreneurs in India

Small entrepreneurs cover a wide range of business activities. The range of products manufactured by small-scale industries is very wide from baskets to precision electronic and optical instruments.

(1) Manufacturing Industries:

This type of small entrepreneurs is involved in producing complete articles used for direct consumption and also for processing industries.

PH needs to beef up manufacturing sector – Supplychains Magazine



(2) Village and Cottage Industries:

Village and cottage industries are industries which are carried on in homes of workers which we have designated as cottage industries.

(3) Handlooms and Handicrafts:

These industries cover artisans, skilled craftsmen and technicians who can work in their own houses if their work requires less than 300 square feet space, less than 2 kW power less than 5 workers and no pollution is caused.


Handicrafts, toys, dolls, small plastic and paper products, electronic and electrical gadgets are some examples of these industries.

(4) Modern Small Entrepreneurs:

These industries are :

(a) Small Entrepreneurs:


According to Government of India, 2000, small scale industry is an undertaking having an investment in plant and machinery of not more than Rs. 1 corer.

(b) Ancillary Industries:

These are industrial undertakings having fixed investment in plant and machinery not exceeding Rs. 75 lakes (Government of India, 1991) engaged in

(i) the manufacture of parts components, sub-assemblies, tooling or intermediaries, or

(ii) the rendering of services supplying 30% of their production or services, as the case may be, to other units for production of other articles

(iii) Tiny Units: This refers to undertakings having fixed investment in plant and machinery not exceeding Rs. 5 lakes. These also include undertakings providing services such as laundry, zeroing, repairs and maintenance of customer equipment and machinery, hatching and poultry etc.

(II) Trading Industries:

These types of small entrepreneurs are engaged in sale and purchase or exchange of goods and services. These industries act as middlemen between producers and consumers. This type of units includes wholesaler, retailer and commission agents.

(III) Service Industries:

These small entrepreneurs’ establishments are engaged in personal or household services in rural areas and towns with population not exceeding 5 lakes and having fixed investment in plant and machinery not exceeding Rs. 2 lakes. These industries include:

(a) Professional services e.g. services of law, accounting medicine, consultancy etc.

(b) Commercial services e.g. transport, constructing warehousing, real estate, repair shops etc.

(c) Personal services e.g. fashion shops, dry cleaning restaurants, etc.

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