1.Small Scale Industrial Undertaking
A Business Enterprise will be called Small Scale Business Undertaking if Investment in Fixed Assets, in Plant and Machinery, whether held on Ownership basis or on Lease or on Hire Purchase does not exceed 10 million Rupees and it is in no way owned, controlled or subsidiary of any other industrial undertaking. Here it should be explained that if two or more enterprises are set up by a same person as a sole proprietor, each such enterprise shall be considered to be controlled by the other industrial undertaking or undertakings. If two or more undertakings are set up as partnership firms and one or more partners are common, then each enterprise shall be considered as controlled by other industrial undertakings. In such cases none of these business enterprises will be graded as Small Scale Industrial Undertaking even if Investment is below 10 million. Here it should also be mentioned that investment in Plant and Machinery includes cost of tools, dies, spare parts for maintenance, R&D equipments, pollution control equipments, generator sets, fire-fighting equipments, cost of installation of plant and machinery, cost of transportation of machinery and cost of import duty, sales tax, shipping charges in case of imported machinery.
2.Ancillary Industrial Undertakings
Ancillary Industrial Undertaking is that business enterprise which is engaged in manufacturing and supplying of parts, components and intermediaries or is engaged in providing services by the amount not less than 50% of its total production or services and the total investment in fixed assets, in plant and machinery, whether held on ownership basis or on lease or on hire purchase does not exceed 10 million rupees.
Tiny Enterprise is that business enterprise in which total investment in plant and machinery does not exceed 2.5 million rupees.
4.Enterprise by Women Entrepreneurs
If a small business enterprise is operated by one or more women entrepreneurs or if there is women proprietorship or if women have individually or jointly not less than 51% capital investment as partners or shareholders, then the business enterprise will be graded as Enterprise by Women Entrepreneurs.The contribution of Small Scale Business to the country is enormous. Its’ contributions to the different genres of the economy are:
Opportunities in Small Scale Business