What is small scale industry?
A distinction is generally made between small-scale and large-scale industries on the basis of three criteria: firstly, on the basis of employment of labour, secondly, on the basis of capital investment and thirdly, on the basis of the scale of production or productivity. Small-scale and large-scale industries are usually distinguished on the basis of labor employment and capital investment, as there are practical problems in measuring productivity. But despite this there is no general, universally accepted and universally accepted specific definition of small scale industry. The definition of small scale industry also changes depending on changes in country customs, government laws and conditions. Small-scale industries where production is carried on on a small scale by a relatively small number of hired laborers with little capital but under modern methods with the help of machinery are generally called small-scale industries. In small scale industries, business organization and management in general is individualistic—individual initiative and management are its main characteristics.