Tiny Business 

Tiny enterprises currently defined as those having investment in plant and machinery up to Rs. 25 lakhs constitute about 95% of the small scale sector. Government has taken various steps for the promotion of the tiny enterprises. These steps include earmarking of 60% of credit flowing to SSI sector under priority sector lending programme of banks for tiny units (40% for tiny units having investment in plant and machinery up to Rs.5 lakhs and 20% share to units having investment in plant and machinery between Rs. 5 lakhs to Rs. 25 lakhs).

Tiny enterprises have been made eligible for same rate of excise exemption as available to registered units since 1994-95. Excise exemption limit for SSI's including tiny units has been enhanced from Rs. 30 lakhs to Rs. 50 lakhs. This will give inducement to the tiny units for increasing their production.

Government has decided to adopt additional measures for the promotion of Tiny Enterprises by earmarking facilities for Tiny Units under the Integrated Infrastructural Development (IID) Scheme. The NSIC would earmark 40% of the assistance to the tiny units under various schemes viz., supply of machinery on hire purchase, marketing support, technology assistance, training facilities etc. In order to ensure flow of credit to tiny units, a consistent and higher flow of credit to tiny units, the SIDBI will endeavor that up to 60% of its refinance flows to tiny sector

Small Scale Unit

Ancillary Units 

The programme of ancillarisation includes motivation of public and private sector units to offload production of components, parts, sub-assemblies, tools, intermediates, services etc., to ancillary units. The programme of ancillary development has specific advantages both for large as well as small industries and also for the total economy of the country. The large scale units have the advantages in the form of savings in investments, inventories, employment of labour, etc. and getting the items of the desired specifications, while the small scale units have the advantage of getting assured market for their products, availability of technical assistance and improved technology from the parent units. This programme also helps in overall economy of the country. 

Small Industry Development Organisation (SIDO) is a nodal agency of the Central Government and Ancillary Division at Headquarters continued its function for the promotion of ancillarisation programme in the country. Constant liaison has been maintained with Administrative Ministries both at Central & State Levels, Department of Public enterprises, public/private sector undertakings and other industrial developmental agencies through various programmed such as Vendor Development Programmes, Buyer- Sellers Meet, Ancillary Exhibition, Seminars, Workshops, State Level Ancillary Advisory Meetings, Plant Level Committee Meetings and PSU's and visit to public/private sector undertakings for the promotion of small ancillary & sub-contracting units.

Sub-contracting exchanges are functioning as a part of major SISIs in the country at important cities for the promotion of fruitful and lasting contracts between large & medium undertakings and small scale ancillary units. The spare capacity for different facilities as available with the competent small scale units are registered with these SCXs. These SCXs also obtain such items from large units which are required by them and can be manufactured in the small scale sector. These SCXs organise contacts between Buyers & Sellers by way of organising Vendor Development Programmes, Buyers & Sellers Meet and Exhibition, etc. 

In new Industrial Policy, stress has been given on the development of ancillary industry in the country by strengthening existing SCXs and setting up of new SCXs by industrial associations and other non-Governmental organisations. As a follow-up of new industrial policy, existing SCXs have been equipped with latest equipments like Plain Paper Copiers and Electronic Typewriters. Further efforts are being made to equip these SCXs with other facilities like FAX, Computer Terminals, etc. for effective and better utilisation of services. CXs established by industrial organisations will be eligible for registration as SSSBE and will be entitled to get benefits as available to tiny sector units.
A great difficulty was being experienced by most of the ancillary units in getting timely payments from their parent units. In order to provide help, in this regard, an Act has been passed under which interest is payable on the delayed payments by large undertakings.

For providing advisory assistance, State Level Ancillary Advisory committees have been set up in almost all the States to provide infrastructural facilities and to recommend measures for the promotion of ancillary industry in the State and to monitor the outcome of these efforts. SLAACs have members from SISIs, State Industries Departments, Industrial Associations, Large Undertakings, Industrial Development Agencies, Banks, Financial Institutions etc.

The requirement of the spares of Defense was being met mainly by imports from USSR, but due to political changes in that country these spares are not easily available and Ministry of Defense have come forward with an ambitious programme for the indigenisation of items required by them to be developed in the country. During the year greater stress has been given on the indigenisation of the items required by Defense.

Other activities
1) Vendor development programme 
2) Indigenisation of defence items 
3) State level Ancillary Advisory Committee meeting 
4) Plant level Committee meetings 
5) Registration with SCXs 
6) Supplies to public sector undertakings 
7) Standing Committee/Ancillary development

Small industries have tended to concentrate in the vicinity of large industries or in metropolises and big cities. The pull of the market, availability of physical and social infrastructural facilities and skilled labour have been major  considerations. The setting up of large public sector / private sector undertakings in some places has encouraged growth of small scale industries in those areas (e.g. Bangalore, Rourkela, Ranchi, etc.), manufacturing ancillary products and providing auxiliary services. Over the years small units have exhibited significant growth in some new towns and cities. Government Support Programmes, Entrepreneurship, Raw material availability, improved  infrastructure, increasing demand and a lot of other factors have contributed to this phenomenon. A major aspect of "spatial concentration" of SSI is that clusters of certain product lines have come up. The clusters of some selected industries in some areas are indicated below. 

Business Enterprises 

Some people may like to go into businesses as quickly as possible without actually entering into manufacturing and start earning at the earliest. For such people, there are several easy-to-start methods are available. Some of them are as follows: 

• Become a franchisee 

• Start a Turn-key or Packaged Business 

• Join Multi-level Marketing Schemes 

• Buy an Existing Business 

Before selecting a particular method each of these methods needs to be examined carefully as each of them have their own advantages as well as limitations.

Becoming a Franchisee
Franchisee is a person or a firm or a company that acquires a franchise, a commercial concession granted by the franchiser to exclusively sell their products or provide services in a specific area. Franchises can be found in in almost any type of business. Franchises often succeed because product is a known brand and has been launched in the market, involvement of the owner-manager and backing of the franchiser. Usually a Franchisees have to make an upfront payment to the franchisers and may be an annual royalty, too.

Turn-key or Packaged Businesses
Some firms offer to teach their prospective customers how to set-up a business using their equipments and ingredients. For example, Kodak not only sell its machines but also train the buyer how to operate the machine, produce different jobs and set-up their business. There is no royalty payment involved. However, one should evaluate these types of business opportunities with thorough diligence and not get carried away by the hype. 

Multi-level Marketing Schemes or network marketing method
In multi level marketing scheme the company appoints agents, these agents in turn recruit other agents and they in turn recruit their own agents and chain continues. In India in products such as soaps, cosmetics or jewellery are sold through multi level marketing schemes. Amway cleaning products, Modicare soaps, Oriflame cosmetics or Tupperware plastic products are good examples. This facilitates a rather low-cost market entry for an individual. Ironically, most of the profit is made in recruiting sub-agents rather than by selling the products. 

Buying an Existing Business
Purchasing an existing business may save a considerable time and reduce risk, too. Some businesses are sold by the existing owners, some businesses command even a premium, too. A word of mouth is usually be the best source of information to pick a business for a good bargain. Moreover, if the unit is sick then turning around a sick business may be tall order. Before  buying a business a person should check out the actual position of the business and problems he might face once he buys it. There are many methods to help examine the businesses up for sale and arrive at a reasonable purchase price. Thus, quick-start methods offer a simple route to entrepreneurship. But it does requires deep pockets and a good judgment. 

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