PROMOTIONAL / NECESSARY STEPS FOR SMALL - SCALE INDUSTRIAL OR ENTREPRENEUR UNIT.

Small scale industry is preferred by any entrepreneur who wants to enter in a business process. Small scale industry is the best avenue available & opened to start the business with future expansion. Setting up a big industry or manufacturing unit requires strong availability of marketing, finance, mngmt & govt policies. It is not possible for all entrepreneurs to enter into big industrial units so small scale industries offer an entrepreneur a first step in the business world. Every small scale industry has to undergo some importants steps usually known as promotional steps of small scale industries. There are total 9 steps: 1) Selection of small industries 2) Preparation of project report 3) Decide a suitable form of org 4) Accommodation, power & other facilities 5) Machinery 6) Raw Materials 7) Finance 8) Selection of workers 9) Marketing & feedback

1) Selection of small industries: Selection is a confusing task. Entrepreneur has to tally his own potential with the area of operation he is undertaking as business. Selection of industry gives a choice to select from production &

service industry. While selecting an industry with own potential, he has to work out on external and future internal factors affecting. In managerial language, it is called as risk analysis. 2) Preparation of project report: In this step, entrepreneur has to collect, analyze & study complete information collected while selecting an industry. He can submit this information to govt to be a part of govt's small scale industrial subsidies. In this step, he registers his industry as a small scale industry and gives a commitment to govt for following rules & regulations laid down for the same. 3) Decide a suitable form of org: After registration, an entrepreneur gets a small scale industry which is to be treated as a different entity and he has to work as the highest governing authority for that developed legal entity to make it easy on organizational front. He has to decide whether to keep it as a sole proprietorship or add some partners. While deciding an organizational structure, he has to consider the factors like capital required, risk in the business and rules & regulations. 4) Accommodation, power & other facilities: This step separates the planning & execution. From this step onwards an entrepreneur has to deal with practical decisions. Basic ammunities required like place, ground structure, engineering criticalities & other infrastructural factors like layout of industry, storage, transportation, accommodation & service facilities, water, power, roads & sanitation systems required for industry needs to be setup. Factors like labor, supplier of raw materials & nearest market place or purchaser, permissions from govt authorities like collector & municipal

corporation are to be taken. 5) Machinery: Entrepreneur has to decide his methodology of production and for the same, one of the important factors is machinery. Depending on type of product, its quantity, quality, demand, capacity of production and time required for production as well as supply will dictate the type of machinery required for that production unit. Entrepreneur has a choice to make his production unit automated, semi automated or manual by adopting imported or indigenous machinery available by confirming its specifications with a view of maintenance, purchase cost, quality of production, durability and services provided by machine manufacturer. Nature of small scale industry will put some restrictions on the purchase of machinery and basic financial as well as infrastructural investments. Sometimes, for some specific machinery, govt offers subsidy. 6) Raw Materials: When raw material is considered, it is to be considered with its 3 types: a) easily available b)rare raw material c)imported raw material At the time of deciding production objectives, entrepreneur has to select one of the types or combination. It is necessary to calculate investment required, suppl of quality raw material at demanded quantity and its effect on production and cost of production. Sometimes, some small scale industries get the suppl of raw materials from govt agencies. 7) Finance:

Raising finance is not a big problem for a small scale industrialist because requirement of capital is low, govt provides subsidies and financial corporations like SFCS and IDBI are offering special featured capital support for small scale industries. Usually financial corporations will offer 50% of capital. 25% of capital will be provided by state industrial corporation on co-operative basis and remaining 25% entrepreneur has to collect. Govt rules & regulations for financial aspect are easy and in favor of small scale industrialist which motivates entrepreneur to start off small scale industrial units instead of going for pvt ltd companies. 8) Selection of workers: HRM in small scale industries requires pre - planning. Usually human resources for workers or worker categories is mixed where mainframe workers are skilled and supportive workers may be unskilled. Wages and remuneration paid is comparatively low but scope for upgradations and changes is possible. 9) Marketing & feedback: A product produced must reach market because marketing completes the business cycle. Small scale industries are not that strong to spare some investments on marketing. Budget for promotional activities is very low and moreover depending on mouth publicity. Feedback from customers will help small scale industrialists to reschedule and reshuffle his resources to overcome negative feedback. Marketing & feedback are used for all the steps as it helps to save promotional efforts and investments & regular feedbacks works as crosschecks on routine process.