BAPUJI INSTITUTE OF ENGINEERING AND TECHNOLOGY

Davanagere 577004, Karnataka

Department of Computer Science and Engineering

Assignment on Small Industries Service Institutes (SISI)

Category: Training
Submitted by
AISHWARYA KALAL 4BD17CS005
APEKSHA B 4BD17CS017
ARPITA T M 4BD17CS019

Under the Guidance of

Prof. Raghu B R
Assistant Professor,
CSE, BIET.

VISVESVARAYA TECHNOLOGICAL UNIVERSITY

JNANA SANGAMA, BELGAUM-590018, KARNATAKA
Subject Name: Management and Entrepreneurship for IT Industry
Subject Code: 17CS51

Course Outcomes:
CO1: To Define management, organization, entrepreneur, planning, and staffing
principles in management.
CO2: To understand leadership styles, importance of communication and
coordination steps of management, along with methods in establishing control.
CO3: To know the resource planning in ERP and supply chain Management.
CO4: To apply the resource planning in ERP on supply chain Management.
CO5: To know and apply several SSI, MSME and LSI organizations along with
IPRs and institutional support in entrepreneurship.

CO/PO PO1 PO2 PO3 PO4 PO5 PO6 PO7 PO8 PO9 PO10 PO11 PO12

CO1

CO2

CO3

CO4

CO5
Category: TRAINING
SMALL INDUSTRIES SERVICE INSTITUTES (SISI)

 Introduction:

 The SISIs are set up to provide consultancy and training to small

entrepreneurs both existing and prospective.
 There are 28 SISIs and 30 branch SISIs set up in state capital and
other places all over the country.
 The activities of SISIs are co-ordinate by the industrial management
training division of the DC SSI Office (New Delhi).
 SISI has wide spectrum of technological management and
administrative tasks to perform.
 At present the SSI constitutes a very important segment of the Indian
Economy and has emerged as a Dynamic & Vibrant Sector of the
Economy.
 The SSI Sector holds the key to Economic Prosperity of the Indian
Economy, Characterized by abundant Labor Supply,
Unemployment & Under Employment, Scarcity of Finance,
Growing Modern Large Industries providing scope for development
of Ancillary Industries & so on. The SSI has grown phenomenally
during the last six decades & has acquired a very prominent place in
the Socio-Economic Development in the country.
  Objectives of Institute are:

Reasons for Developing Small Enterprises in India can be enumerated as

follows:
 To generate Large Scale Employment Opportunities for the
Unemployed speedily with relatively Low Investment.
 To Eradicate Unemployment Problem from the country.
 To encourage dispersal of enterprises to all over the country
covering Rural Areas, smaller towns & economically backward
regions.
 To bring Backward Regions too in the mainstream of national
development.
 To promote balanced regional development in the whole country.
 To ensure more equitable distribution of National Wealth & Income.
 To encourage effective mobilization of Untapped Resources of the
country.
 To improve Socio-Economic Conditions & Standard of living of the
people in the country.
 To seize the vast opportunities created for Small Enterprises due to
Liberalization & Globalization policies of the Gov. of India.
 To help earn Vital Foreign Exchange for the country through
Exports of Goods/Services of Small Enterprises.
 To bring more Revenue to the Central & State Gov. by way of
Taxes.
  Functions of SISIs include:

 To serve as interference between Central and State Governments.

 To render technical support services to conduct Entrepreneurship
development programmers.
 To initiate promotional programmers.
 Economic consultancy/Information/EDP Consultancy.
 Trade and market information’s.
 Project profiles.
 State industrial potential survey.
 District industrial potential surveys.
 Modernization and in-plant studies.
 Workshop facilities.
 Training in various trade/activities.

 Classification & Definition of Industries

The earlier concept of Industries has been changed to Enterprises.

Enterprises have been classified broadly into Two Categories as Under :

Manufacturing Enterprises : Enterprises which are engaged in the

Manufacture / Production of Goods pertaining to any Industry are
referred to as “Manufacturing Enterprises”.

Service Enterprises : Enterprises which are engaged in providing /

rendering of Services are referred to as “Service Enterprises”.
Manufacturing Enterprises : They have been defined in terms of
Investment on Plant & Machinery (Excluding Land & Buildings) &
further classified into 3 Categories as under :

a) Micro Enterprises : An Enterprise where the Investment on Plant &

Machinery is upto Rs. 25 Lakh is referred to as a “Micro Enterprise”.

b) Small Enterprises : An Enterprise where the Investment on Plant &

Machinery is above Rs. 25 Lakh upto Rs. 5 Crore is referred to as “Small
Enterprise”.

c) Medium Enterprises : An Enterprise where the Investment on Plant &

Machinery is above Rs. 5 Crore & upto Rs. 10 Crore is referred to as
“Medium Enterprise”.

Service Enterprises : They have been defined in terms of their Investment

in Equipment (excluding Land & Building) & further classified into 3
Categories as under :

1) Micro Enterprises : An Enterprise where the Investment in Equipment

is upto Rs. 10 Lakh is referred to as “Micro Enterprise”.

2) Small Enterprises : An Enterprise, where the Investment in equipment

is above Rs. 10 Lakh & upto Rs. 2 Crore is referred to as “Small
Enterprise”.

3) Medium Enterprises : An Enterprise, where the Investment in

Equipment is above Rs. 2 Crore & upto Rs. 5 Crore is referred to as
“Medium Enterprise”.
  Existance and Evolution of SISI

SISI Pre-independence Before Independence, the present small scale

industry was meant to denote the village and the urban cottage industry.
This group included a variety of industries ranging from manufacturing
of Iron safes, locks, carpets, marble jigs, baskets, hand-loom cloth and the
like. In fact, at that time the term “cottage and Small scale industries”was
used in juxtaposition to large scale industries, which were established
under the British patronage.
They received encouragement and support during the freedom
movement. The small scale industries found a prominent place in the
economic programme envisaged by the Indian National Congress.

SISI Post-Independence After 1947 Jawaharlal Nehru maintained

separate entities of small scale industries. He was of the view that a small
industry was the middle sector and it would overlap both the cottage and
the large industries. 1977 industrial Policy .
The basic policy support of SISI sector had its roots in the Industrial
Policy Resolution 1977, laid emphasis on reservation of items. The
reservation economically viable and technologically feasible products to
be exclusively manufactured by small scale industry began with a list of
47 items which was gradually extended to too many products.
At Present 812 items are in the reserved list. The limit on the fixed capital
investment for SSI’s was Rs 7.5 lakhs and for ancillaries it was Rs 10
lakhs. After the Industrial Policy, the ceiling for investment for SSI’s was
raised to Rs 60 lakhs and Rs 70 lakhs for ancillaries.
  ROLE OF SSI IN ECONOMIC DEVELOPMENT

The Role of Small Enterprises in Economic Development of our Country

can be discussed with reference to the following parameters during the
last Four Decades :
1) Increase in the Number of Small Enterprises.
2) Increase in the Value of Production in Rupee Terms.
3) Increase in the Number of People Employed.
4) Increase in the Export Earnings in Rupee Terms.

 EMPLOYMENT

The Small Enterprises have registered phenomenal growth in their

Number, Production, Employment & Exports over the Last Four Decades.

In 1950, there were 16,000 Registered Small Scale Industries & this has
increased to 31.21 Lakh Registered SISI’s during 1998 – 1999.

During 1973 – 74, the Total Value of Production reported by SISI’s was
Rs. 7200 Crores & this has grown phenomenally by about 75 Times to
Rs. 5,38,357 Crores during 1998 – 1999.

As regards Employment, about 40 Lakh People were employed in SISI

Sector during 1973 – 1974 & there is a Four Fold Increase in Employment
during 1998 – 1999, that is 175.2 Lakh People were employed in SISI
Sector during 1998 – 1999.
  WHY WE NEED SISI?

For employment generation for balance regional growth for mobilization

of local resources for export promotion for consumer surplus for
development of enterpreneurship for large scale employment with low
investment for attaining self reliance and self dependance for ensuring
equal distribution of income and wealth.

 NEED & RATIONALE OF SMALL INDUSTRY SERVICE

INSTITUTES DEVELOPMENT IN INDIA

As per the IPR (Industrial Policy Resolution) 1956, it emphasizes the

Need & Rationale as given below :

“They provide immediate large scale employment, they offer a method

of ensuring a more equitable distribution of the National Income & they
facilitate an Effective Mobilization of Resources of Capital & Skill which
might otherwise remain unutilized. Some of the problems that unplanned
urbanization tends to create will be avoided by the establishment of Small
Centers of Industrial Production all over the Country.