Small Industries Development Bank of India (SIDBI) was established in October 1989 and commenced its operation from April 1990 with its Head Office at Lucknow as a development bank, exclusively for the small scale industries.
The National Small Industries Corporation Ltd (NSIC) was set up in 1955 as a central government undertaking, the main aim of which is to fulfill the requirement of machinery and equipment for the development of the small entrepreneurs.
The ideal size of an SHG is 10 to 20 members. Though there is no hard and first rule as regards to the membership, still in a bigger group, members cannot actively participate. Also, legally it is required that an informal group should not be of more than 20 people.
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.
An entrepreneur may be a highly professionally or technically qualified persons, even so, he should not dream of becoming a small entrepreneur, unless he is confident of meeting the following requisites which are highly essential to be a successful small entrepreneur.
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.