Scales are the exoskeleton of fishes according to the mode of origin of scales; there are two types of scales. Those, which are formed due to the secretory activity of both epidermis and dermis, as the placoid scales of elasmobranches.
These economies are those which are reaped by a firm not on account of its own efforts and increase in its scale, but on account of the expansion and growth of the industry to which it belongs as also on account of overall development of the economy and markets. Some of the sources of these economies are as under:
In the long run, a number of factors may cause an addition to average cost of firm. They also happen to be both internal and external. These sources of diseconomies or directly or indirectly linked to the inability of the problems of management which not only crop up when a firm is started, but keep increasing with its size. Chamberlin terms them ‘complexities of management’.
Internal economies are associated with the expansion of the scale of output of the firm itself. They are not derived indirectly as a result of expansion of the industry to which it belongs. Listed below are some of the leading sources of such economies.
Sickness in man is gradual process and does not develop suddenly. Similar is the case with industrial units. Therefore, in common parlance, a sick industry is one which is not healthy and a healthy unit is one which earns a reasonable return on capital employed and builds up reserves after providing reasonable depreciation.
Small-scale industries are occupying a very important place in the industrial structure of Indian economy. Therefore, appropriate steps should be taken to remove all those problems the industries suffer for their survival and growth. The environment in which the industry operate must be conducive for the development of industries.
Small-scale industries in India could not progress satisfactorily due to various problems that they are confronted with while running enterprises. In spite of having huge potentialities, the major problems, small industries face are given below.
Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment.
All types of small-scale industries found in India whether in manufacturing sector or service sector are divided into five types: Those units which are producing complete articles for direct consumption and also for processing industries are called as manufacturing industries.
In most of the developing countries like India, Small Scale Industries (SSI) constitute an important and crucial segment of the industrial sector. They play an important role in employment creation, resource utilisation and income generation and helping to promote changes in a gradual and phased manner.