Growth of Small-scale Industries

Liliana Chemello^*
*Correspondence: Liliana Chemello, Department of Management Studies, JK Institute of Business, UK, Email:

Introduction

In every country, Small Scale Industries (SSIs) account for most of the manufacturing sector. They have always been important in the economics of all major industrial nations. In India, 95 percent of industrial units are smallscale, adding 40 percent of value to the manufacturing sector and contributing 6.29 percent to the country's growth. Small-scale industries in India are defined as businesses with an investment in plant and machinery of less than ten million rupees (SSIs). The fundamental difficulty for SSIs is to produce innovative and customized goods on a consistent basis while utilizing the best available process technologies. Product life cycles have been reduced, product complexity has increased, and access to new technical advances has increased as competitors' skills have improved. The firm's ability to provide goods and services more efficiently than others in the market will determine its competitiveness.

Description

Many significant firms around the world have been focusing on their core business, downsizing, and outsourcing in recent years. This trend has created numerous chances for SSIs to collaborate with them. Because the design and implementation of viable strategies are critical to a company's success. To seize these opportunities, SSIs across the board must devise effective strategies for delivering higher added values to consumers in terms of cost, quality, and services in the shortest time possible. There have been few studies focused at helping SSIs create competitive strategies. Even in industrialized countries, the majority of research has focused on large-scale industry (LSI) [1-3].

Small businesses with low resources are likely to see their business environment differently than larger businesses with greater resources, and they are also likely to experience various environmental constraints in terms of market competitiveness. A major company's approach to benchmarking competitors and negotiating with suppliers is expected to differ from a small company's approach. As a result, this study, as an empirical study for SSIs, has its own value in terms of improving strategy development knowledge. It will assist in comprehending major demands and restrictions on SSIs, as well as the dynamic nature of strategy formulation and the relationship between strategy and performance. Due to their limited resources, SSIs confront numerous pressures and limits in maintaining their competitiveness, including a lack of capital, competent staff, and advanced technology. To achieve its aims and objectives, their strategy should fit the organization's resources to the changing environment, particularly its markets and customers.

The new competition is based on lower costs, higher quality, higherperforming items, a wider selection of products, and better service, all offered at the same time. SSIs will need to adopt appropriate strategies for making new investments and developing competences to survive in this new competition. Competencies in new product development, human resource management methods, organizational productivity, quality management, and information management were all incredibly important in affecting small business growth rates. They've also discovered that companies with a higher-level learning orientation are more likely to have statistically significant higher competencies in areas like measuring customer expectations, identifying quality variance, implementing quality improvements, using data to optimize data, creating control systems, identifying market changes, and using IT to acquire data. Smaller businesses, on average, face greater market and consumer volatility. Owners and managers of small businesses have a much broader range of goals than owners and managers of huge corporations [4,5].

Conclusion

Smaller businesses respond rationally by prioritizing short-term profits over long-term advantages and flexibility over specific investments, even if there is a cost penalty. Inadequate technologies, as well as a lack of in-house human experience and financial resources, are the key impediments to SSIs being competitive. Smaller enterprises' capacity to access export markets is hampered by resource shortages, which also limits their ability to progress to more advanced stages of internationalization. Micro and small-scale enterprise growth is a vital ingredient in the long-term development of developing economies, according to a growing body of data.

References

1. Shastri, Rajesh Kumar, Ravindra Tripathi, and Murad Ali. "Liberalization and its impact on small scale industries." Int J Voc Tech Edu 3 (2011): 81-83.

Google Scholar, Crossref, Indexed at

2. Subrahmanya, M.H. Bala. "Small-scale industries in India in the globalisation era: Performance and prospects." Int J Manag Enterp Dev 2 (2005): 122-139.

Google Scholar, Crossref, Indexed at

3. Schmitz, Hubert. "Collective efficiency: Growth path for small‐scale industry." J Dev Stud 31 (1995): 529-566.

Google Scholar, Crossref, Indexed at

4. Dar, Bilal Ahmad, and Bhat Fayaz Ahmad. "Small scale industries in Jammu and Kashmir (JK): Growth, performance and challenges." Int NGOJ 8 (2013): 38-43.

Google Scholar, Crossref, Indexed at

5. Anyanwu, C.M. "Financing and promoting small-scale industries. Concept, issues and prospects." Bullion 25 (2001): 4.

Google Scholar, Crossref, Indexed at