What is the difference between Large and Small Scale Entrepreneur?

1. Registration

The entire large scale entrepreneur included in schedule of the Industrial Development and Regulation Act are subject to licensing and registration with Government within a prescribed time limit.

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Small entrepreneur is required to be registered as SSI units with the Director of Industries or State and Union territories for purpose of allocation of scarce raw-materials, power supply and taxation and also for statistical purposes.

2. Government intervention


Government can intervene if there had been unjustifiable fall in the volume of production in the industry or there had been unjustifiable deterioration in quality or increase in prices without justification or cause serious injury or damage to customers.

Government intervention is somewhat less as compared to large scale industries. The main task of the Small Industries Development Organization (SIDO) is the development of small-scale industries in India.

3. Capital investment

There is a capital investment of Rs. 5 corers and above in large industrial undertaking.

The investment limit in plant and machinery does not exceed Rs. 1 corer.

4. Ownership


The large scale industries are generally found in company forms.

Ownership of small scale industries is sole proprietary or partnership.

5. Technology

Large scale industries have higher input of technology and capital these units are relatively more capital intensive.

Generally, SSI units are less capital intensive and more labor-intensive.

6. Location


Large scale industries are generally located more around Metropolitan and urban areas, where all the basis infrastructural facilities are available.

SSI units are more amenable to dispersal and decentralized growth. As such, they are located in cities as well as in rural and semi-urban areas with the minimum availability of infrastructural facilities.

7. Management

Large industrial units have a greater exposure to professional management.

SSI units use the age-old techniques and equipment. There is no scope of professionalization in small scale units.

8. Marketing

Large industries are basically market-oriented. They produce goods for the masses.

SSI units basically cater to the needs of the local people.

9. Specialization

Different jobs are handled by a chain of specialized and skilled people.

All the work from brining raw materials to marketing is done by individual entrepreneur.

10. Training

Training is imparted in specialized institution and modern modes of management are implemented to derive varied benefits.

Training is generally imparted from father to son. It is a tradition rather than a work process. Skills are perfected over the years of work.

11. Gestation period

There is comparatively a long gestation period in large scale industries.

In SSI units, there is comparatively a short gestation period.

For a vast and rural economy like India, small entrepreneurs hold the key to economic development. Over the years, small entrepreneurs have made significant contribution through employment generation, mobilization of capital, equitable distribution of income and regional dispersal of industries.

In 2002-03, the number of SSI units was 35.72 lakes producing over 75, 000 commodities ranging from simple consumer goods to sophisticated electronic products with an employment figure of 199.65 lakes.

Through the creation of unskilled jobs, small entrepreneurs have direct impact on alleviation of poverty. Total value of production by small entrepreneurs account for nearly 10 % of the total industrial output of our country.

They contribute to about 34% of the national export and 7% of the Gross Domestic Product. Given the right kind of environment and ambience, the small entrepreneurs will certainly be able to take our economy to greater heights.

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