Small Business in India

India being a developing nation is shifting fast from its agriculture based occupation to industrialization. It has about 80 thousand villages and almost 70% of its population are living in rural and semi rural areas. ' Small Business in India' is becoming popular among rural, semi rural masses and with unemployed urban youths.
' Small Business in India' output contributes almost 40% of the gross Industrial value-added 45% of the total exports from India and is the second largest employer of human resources after agriculture. The development of ' Small Indian Business ' has helped the rural, semi rural and unemployed urban class become self-supporting. Government measures covers -
• Industrial extension services,
• Institutional support in respect of credit facilities,
• Provision of developed sites for construction of sheds,
• Provision of training facilities,
• Supply of machinery on hire-purchase terms,
• Assistance for domestic marketing as well as exports,
• Special incentive for setting up enterprises in backward areas etc.
• Technical consultancy & financial assistance for technological up-gradation. (Source SSI).
Central Government provides institutional support-services and incentives. State Governments attract investments and promotes ' Small Indian Business' to enhance industrial production and to generate employment in their respective States.
The bottlenecks for developments are -
Large number of Acts and Laws,
Voluminous paperworks and documents requirements and critical and elaborate returns submission procedure,
Lengthy bureaucratic inspection process.
'Small Business in India' has emerged as a dynamic and vibrant sector during the eighties. After completion of Seventh Plan period, it accounted for nearly 35% of the gross value of output in the manufacturing sector and over 40% of the total exports from the country. It also generated employment for around 12 million people. In the nineties, it added more vitality and growth-impetus to the sector, particularly in terms of output, employment and exports. Further efforts had been made to deregulate and remove bureaucratic hurdles, with a view to remove bottlenecks on its growth potential, instilling greater faith in small and young entrepreneurs. Presently all statutes, regulations and procedures is be reviewed and modified, wherever necessary, to ensure rise of 'Small Business in India' to a new horizon.