Module 4
Modern small Business Enter prises:
UNIT IV 8 hours
Modern Small Business Enterprises: Role of Small Scale Industries, Concepts and
definitions of SSI Enterprises, Government policy and development of the Small Scale
sector in India, Growth and Performance of Small Scale Industries in India, Sickness in SSI
sector, Problems for Small Scale Industries, Impact of Globalization on SSI, Impact of
WTO/GATT on SSIs, Ancillary Industry and Tiny Industry (Definition only).
Institutional Support for Business Enterprises: Introduction, Policies & Schemes of
Central–Level Institutions, State-Level Institutions.
Module 4
Modern small Business Enter prises:
Modern small businesses today often leverage technology and innovation to compete effectively
in the market. Here are some key characteristics and strategies that define modern small
business enterprises:
[Link] Presence: Establishing a strong online presence through websites, social media
platforms, and e-commerce channels is crucial. This not only helps in reaching a wider audience
but also enhances credibility and customer engagement.
[Link] Adoption: Embracing technology for various aspects of business operations, such
as cloud computing for storage and collaboration, customer relationship management (CRM)
systems for managing interactions, and automation for repetitive tasks, helps in efficiency and
scalability.
[Link] Work Environment: Many modern small businesses offer flexible work arrangements,
including remote work options and flexible hours, which can attract top talent and improve
employee satisfaction.
[Link]-Driven Decision Making: Utilizing data analytics to gain insights into customer behavior,
market trends, and operational performance allows small businesses to make informed
decisions and adapt quickly to changes in the market.
Module 4
Modern small Business Enter prises:
Focus on Customer Experience: Providing exceptional customer service and personalized experiences can
differentiate small businesses from larger competitors. This often involves using customer feedback and data
analytics to tailor products and services to meet customer needs.
•Sustainability and Social Responsibility: Many modern small businesses prioritize sustainability and social
responsibility. This includes eco-friendly practices, ethical sourcing, and community involvement, which can
resonate with environmentally and socially conscious consumers.
•Agility and Innovation: Small businesses are often more agile than larger corporations, allowing them to
innovate quickly and respond swiftly to market changes and customer feedback. This agility can be a
significant competitive advantage.
•Collaboration and Partnerships: Collaborating with other businesses, both within and outside their industry,
can open up new opportunities for growth, such as joint ventures, co-marketing campaigns, or shared
resources.
Module 4
Modern small Business Enter prises:
Adaptability to Trends: Staying updated with industry trends and technological
advancements helps small businesses anticipate changes and proactively adjust their
strategies to stay competitive.
Financial Management: Effective financial management, including budgeting, cash flow
management, and access to financing options, is crucial for sustainability and growth.
Overall, modern small business enterprises thrive by embracing technology, prioritizing
customer experience, fostering innovation, and maintaining agility in a dynamic market
landscape.
Module 4
Role of Small Scale Industries:
Small scale industries (SSIs) play a crucial role in the economic development of both
developed and developing countries. Here are some key roles and contributions of small
scale industries:
Employment Generation
Promotion of Entrepreneurship
Regional Development
Utilization of Local Resources
Flexible and Adaptive
Promotion of Export
Support for Large Industries
Inclusive Growth
Cultural Preservation, Contribution to GDP
Module 4
Government policy and development of the Small Scale sector in India:
The development of the Small Scale Sector (SSS) in India has been a focal point of various
government policies and initiatives aimed at promoting industrialization, employment
generation, and balanced regional development. Here’s an overview of the key government
policies and their impact on the small scale sector in India:
Industrial Policy Resolutions (1948, 1956, 1991):
1948 Resolution: Recognized the role of small industries in balanced industrial development
and laid the foundation for supportive policies.
1956 Resolution: Focused on promoting small scale industries through reservations of
products for exclusive manufacture by the SSS.
1991 Policy: Liberalized the industrial sector and reduced reservation for SSIs, aiming for
competitiveness and efficiency.
Module 4
Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006:
This Act defines MSMEs based on investment in plant and machinery or equipment, and it
provides for various supportive measures such as credit facilitation, technological
assistance, and market promotion.
It mandates timely payments to MSMEs by buyers and promotes competitiveness through
the adoption of modern technology.
National Manufacturing Policy (2011):
Aims to enhance the share of manufacturing in GDP to 25% and create 100 million jobs by
2022.
Emphasizes the growth of MSMEs, including small scale industries, through infrastructure
development, technology modernization, and skill development.
Module 4
Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006:
This Act defines MSMEs based on investment in plant and machinery or equipment, and it
provides for various supportive measures such as credit facilitation, technological
assistance, and market promotion.
It mandates timely payments to MSMEs by buyers and promotes competitiveness through
the adoption of modern technology.
National Manufacturing Policy (2011):
Aims to enhance the share of manufacturing in GDP to 25% and create 100 million jobs by
2022.
Emphasizes the growth of MSMEs, including small scale industries, through infrastructure
development, technology modernization, and skill development.
Module 4
Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006:
This Act defines MSMEs based on investment in plant and machinery or equipment, and it
provides for various supportive measures such as credit facilitation, technological
assistance, and market promotion.
It mandates timely payments to MSMEs by buyers and promotes competitiveness through
the adoption of modern technology.
National Manufacturing Policy (2011):
Aims to enhance the share of manufacturing in GDP to 25% and create 100 million jobs by
2022.
Emphasizes the growth of MSMEs, including small scale industries, through infrastructure
development, technology modernization, and skill development.
• Project management is the discipline of planning, organizing, securing, and
managing resources to achieve specific goals within constraints such as
time, cost, and scope. Here’s an overview of key aspects and processes
involved in project management:
•Project Charter: Defines the project scope, objectives, stakeholders, and initial requirements.
•Feasibility Study: Assesses the project's viability in terms of technical, economic, and organizational
aspects.
•Project Planning:
•Scope Management: Defines and controls what is included and excluded from the project scope.
•Time Management: Develops a schedule and timeline for project activities.
•Cost Management: Estimates, budgets, and manages project costs.
•Quality Management: Ensures that project deliverables meet specified quality standards.
•Risk Management: Identifies, assesses, and mitigates project risks.
•Resource Management: Allocates and manages human, material, and financial resources.
•Communication Management: Plans and facilitates communication among stakeholders.
•Procurement Management: Procures necessary resources and services for the project.
•Project Initiation:
Module 5
Modern small Business Enter prises:
UNIT V 8 hours
Project Management: Meaning of Project, Project Objectives & Characteristics, Project
Identification- Meaning & Importance; Project Life Cycle, Project Scheduling, Capital
Budgeting, Generating an Investment Project Proposal, Project Report-Need and
Significance of Report, Contents, Formulation, Project Analysis-Market, Technical, Financial,
Economic, Ecological, Project Evaluation and Selection, Project Financing, Project
Implementation Phase, Human & Administrative aspects of Project Management,
Prerequisites for Successful Project Implementation.
New Control Techniques- PERT and CPM, Steps involved in developing the network, Uses
and Limitations of PERT and CPM .