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What Is A Small Enterprises

The meaning and definition of small enterprises or small-scale industry (SSI) vary from country to state to the region and most importantly to the stage of the development. Small Enterprises or SSI is nothing but is operated with skilled labourers in several 10 to 50. It is a tough task to maintain consistency with this much of several labourers so the government is helping them wherever it is needed and is also promoting it regularly. And the Indian Government has also set up Central Small-Scale Industries Organisation and the Small- Scale Industries Board (SSIB) in 1954-55.

In short, it is an industry that has a limited number of employees with a limited flow of material and finances. For eg- Google, Walmart, or any other big company like them can not be considered as a small enterprise.


  • To generate more and more jobs.
  • It helps in the development of the rural and backward regions.
  • It helps in improvisation mainly in terms of living.
  • It helps in reducing regional imbalances.
  • It helps and always makes sure that an equal amount of income and wealth is distributed.
  • It helps in solving problems like unemployment, and less money flow.
  • It adopts the latest technologies to ensure that all the products manufactured in the industry are of high quality and can be sold easily.


  • Employment- It is one of the major sources of employment for developing countries like India. More labourers and manpower are used in production due to fewer resources, and limited technologies.
  • Make In India- Small-Scale Industries are the best examples for the Make In India proposal. Their main aim is to produce quality products and sell them worldwide. Hence, it results in more demand across the world.
  • Total Production- These enterprises contribute 40% of the total production of goods and services in India. And they are the main reason behind the development and growth of the Indian Economy.
  • Export Contribution- Most of the export industries of India are fully dependent on these types of industries. And also helps in growth and development. Almost half of the products which are being exported are made available from these types of industries.
  • Public Welfare- SSI’s are the main of the generation of more employment across the country. They even contribute to social growth and increasing the economy.
  • When they are using new technologies then it is directly increasing the efficiency also.
  • And the chances of innovations increase because of the competition.

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