Resource Mobilization — Entrepreneurship STD 11 Commerce — Question

All those small - scale industry unit can be known as ancillary (auxiliary):

small industrial unit if it suppliesi not less than 50% of its production i to another unit, referred to as the parent unit. Such type of units manufacture components, etc. for the parent units.

Tiny units are generally very small business enterprises whose investment in plant and machinery is up to ₹ 25 lakhs, but would shortly be raised irrespective of location of the unit.

These units have the benefit of a certain demand from the parent units. They also have the technical and financial help from their respective parent units. They generally engaged in producing or manufacture of parts, components, sub-assemblies, tooling or intermediates; or the rendering of services. Ancillary industries are those which manufacture parts and components to be used by larger industries. For example: Companies like GE (ancillary) produce engines for the aircraft industry.

All types of shops, stationery shop, tailoring shop, agro based medical shop, schools, parlours, photostate and STD booths in your locality.

The investment in plant and machinery, whether held on ownership basis or on lease or on hire purchase, should not exceed 10 million.

Tiny industry where investment in plant and machinery does not exceed ₹ 25 lakhs.

Any number of labour can work, no restrictions.

The number of persons employed in these units must be less than 50.

These units are normally operated under parent company.

These units are normally operated under sole proprietorship firm of ownership.

These units are managed by holding company or by parent company.

These units are managed by family members and not professionals which result in lower profit generation.