Small scale industry is an industry that is independently owned and operated and is not dominant in its field of operation. Such units are generally under single ownership. So it is a sole proprietorship or sometimes a partnership.
“Small-scale industry is beautiful” because of its following important characteristics:
One-man show: A small-scale unit is generally a one-man show. Even the small units which run by a partnership firm or company, the activities are mainly carried out by one of the partners or directors.
Management and ownership are the same: In the case of small-scale industries, the owner himself/herself is a manager also: Thus, these units are managed in a personalized fashion.
Lesser gestation period: Gestation period is the period after which the return on investment starts. Compared to large units, a small-scale industrial unit has a lesser gestation period.
Scone of operation: The operation of small-scale industries is generally localized catering to the local or regional demands.
Indigenous resources: Small units use indigenous resources. Therefore, they can be located anywhere on the basis of the availability of these resources like raw materials, labour etc.
Labour intensive: Small industries are -fairly labour intensive with comparatively smaller capital investment than the larger units.
Using local resources: Small-scale industries use local resources. This is why; most of the industries are decentralized and dispersed to rural areas.
Flexible: Small units are more change susceptible. They are more flexible to adopt changes like the introduction of new products; new method of production, new materials and new markets, new forms of organization etc.
So, these are the various characteristics of the small-scale industry.
