Small Business Business Studies - Small Business

In India, industries are classified on the basis of investment in plant and machinery. Amount of fixed capital investment in a village industry per head artisan cannot exceed is:

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was started in 2005. This scheme is being implemented in collaboration with State Government by:

In India, it is often seen that due to lack of ........ small business have to operate at below full capacity.

There are many programmes for the welfare of women in India. Which of the following is a Dal programme to encourage women to establish o entrepreneurial ventures?

Government departments and institutions like Ministry of MSME, NABARD working in India for small business. Which is a non-government organisation for MSME working at international level and is based in India?

Name the industry in which women's share capital is not less than 51 percent.

Can you give any one parameter that is used by the government to identify small unit?

Ancillary units enjoy a distinct advantage. State that advantage.

You are quite aware of NSIC, a scheme intro duced by government. According to your knowledge, where is its head office located?

When is a unit referred to as 'micro-business enterprise'?

It is right on moral grounds to give some special incentives to small scale industries. Do you agree? Justify your answer.

What role does SIDBI play in promoting SSIs?

Identify any six major industries that are grouped in the small scale sector of India.

Small Scale Industries are widespread in the country. Give some examples of SSIS operational in different parts of the country.

Which industries are classified as Small Scale Industries? Also give the main features of these industries.

Suresh Goyal wants to start a business of manufacturing and distributing room coolers. He is facing a lot of problems as this is his first venture. The demand for room coolers is high in summer season. He wants to make sure that he can meet the orders as and when demanded. To beat the existing players in the market, he wants to sell his product in five cities and does not know how to find customers in different cities. Not only this, he has to ensure that the room coolers reach the customers in different cities. He had sound technical knowledge but was not successful in marketing the output. All this requires a lot of money which is another problem.
State any four problems of small scale business faced by Suresh Goyal.

Karan, a rural boy, identifies the potential of Organic Farming in the village. He meets the zonal agricultural officer, who, looking at the determination of organic farming. The zonal agricultural officer helps him to arrange and procure multiple resources required for his farm land. Karan takes a loan of ₹ 50,000 from SBI as his seed money of ₹ 10,000 is not enough to cater the requirement. Karan ties up with a nearby city's vegetable shop owner to sell his yield. His hard work pays and the organic vegetables are a hit.
Do you think Karan, organic vegetable producer exhibits good entrepreneurial skills? Give reasons in support of your answers.

After doing her M.Com from 'Himachal Pradesh University of Shimla', Komalika went back to her village in Kinnaur district of Himachal Pradesh. She wanted to contribute for the development of women of her village, so she formed an organisation, the membership of which was open for all the women villagers on a voluntary basis by paying ₹ 500 only which will be treated as their capital. Komalika knew that the land of her village was suitable for the farming of medicinal plants. So she motivated the members of her organisation for growing medicinal plants in their fields under the guidance and help of the local agricultural department. It was also decided that the organisation will purchase the produce of each member and sell the same to drug manufacturing companies at a very good price which was not possible for the members individually. The main objective of the organisation is to render services to its members rather than to earn profit. A computer training center for young boys and girls of the village was started under the guidance of Komalika from the surplus of the profits.
On the basis of the given information about Komalika, answer the following questions:
(a) Name the process that helped Komalika in developing an idea into an opportunity.
(b) Identify the kind of organisation that was formed by Komalika.
(c) State any two values which Komalika wanted to communicate to the society.

Board of Directors of ‘’Bio Pure water Ltd.’’ decides to set up its first unit in the hilly area of Himachal Pradesh Company requires Rs. 3 crores for it and Rs. 50 Lakhs for working capital. The company has earned marked15% of its profit for Educational and Health needs of its employees and their family members.

(a) The above company comes under which category as per MSMEDAct 2006.

(b) Write any one commercial reason for setting up of unit in the hilly region.

(c) According to you, what are the options available to the company for meeting its long term and short term needs.

(d) what are the values promoted by the company.

[Hints: Small scale Industry, Cheap price of Land and Labour, Equity share Capital and Loans from Bank, Balanced Regional Development, Motivation to employees, Employment Ganeration and upliftment of rural areas]

P.C. Mallappa and Company, which is based in Bangaluru and Mangalore and deals in tiles and sanitaryware merchandise, has filed a suit against McDonalds challenging its right to use the logo. The issue first surfaced in 1994 when the American fast food giant sent a notice to the company accusing it of violating its internationally well-known logo.
Mallappa has moved the Delhi High Court for cancellation of the Macs registered M logo on the premise that the fast food giant has not used its logo since 1991 when it registered it in India. so this invalidates Big Macs claim to exclusivity over the logo. Further, the firm claims that while Big Macs logo was of a single line, its own logo had double lines. Hence, there was no confusion. In its notice to Indian firm, McDonalds Indian lawyer has held that the fast food giant had been using the logo for many years and also been operating a chain of fast food outlets in many countries which came to be known as the Big Mac because of the M logo. Because of the extent of the business, the name Big M is associated with his client in the US and others in the world. It accused Mallappa of using its logo for sanitary goods with malafide intention of imitating its client.
On the basis of the given information about P.C. Mallappa and Company, answer the following questions:
(a) Do you think the Indian lawyer of McDonald's is right in his stand?
(b) Which concept will come to his rescue in order to fight the case against P.C. Mallappa and company?
(c) Explain the advantages that business houses can derive from the above identified concept?

After completing her graduation from 'Summer Hills University of Shimla', Hemlata went back to her village in Kangra district of Himachal Pradesh. She wants to start a small scale unit for manufacturing hand bags and jute bags by employing women from her villages. The head of gram panchayat advised her to seek help of government since there are number of government incentives and agencies for small scale units.
On the basis of the given information about Hemlata, answer the following questions:
(a) Enlist few incentives offered by the government to small scale industries.
(b) Enumerate the main institutions established by the government to render help to small scale industries.

Sheela had set up a small scale industry in her village in Andhra Pradesh for manufacturing handicraft items. She decided to hire local women from their nearby locality for increasing their production. But the problem with her business was that it had a small capital base. So, she could not afford to pay higher salaries to the employees, which affected their willingness to work and produce more. She had sound technical knowledge but was not successful in marketing the output. Due to limited demand for her handicraft items, the business firm has to operate below full capacity leading to increase in operating expenses. Identify the four problems of small scale business discussed in the above case. Also quote the lines for the identified problems.

Youth in Assam are driven by a burning desire to become financially independent, and it comes as no surprise that Pranjal Sakia is one such person. This young entrepreneur is not just making a good living, but also creating job opportunities for others. At 32, Saikia, who is based up at Assam's Sivasagar District, belongs to a poor family and the youngest among three siblings. After completing his graduation, he unsuccessfully tried for a government job, and then decided to start his own poultry business with a small investment at his native district, which is bordered by the Naga Hills and Arunachal Pradesh in the south and south-east respectively and the Brahmaputra river in the north. After several years of hard work, his business is thriving financially. Soon after starting the business, Pranjal ventured into piggery with his elder brother Prasanta. Within few year, their farm became very popular and it is now the main supplier of pigs in the area.
What incentives are likely to be made available to him from government for establishing such business?

Perfecto Bamboo Factory is a premier bamboo furniture provider owned by Ajit Shekhar. He has set up his new factory at Kashipur, a small town in Uttrakand for manufacturing quality furniture from bamboo for every room. Ajit Shekhar purchased automated machinery for his new factory and employed people from the nearby villages to work in their factory. Ajit Shekhar ensured that proper sanitation and cleanliness is being maintained in the factory.
On the basis of the given information about Ajit Shekhar, answer the following questions:
(a) Identify and explain the role played by small business in rural India.
(b) State any two incentives given by the government to promote such industries.

When J.K. Rowling wrote the first Harry Potter book, she was poor but she owned the copyright in her book. So, she was the only person allowed to make copies of the book and sell them. Of course, she didn't do this herself. She gave permission to a publishing company to do it in return for payment.
But she didn't just own copyright in the words, she owned copyright in the story and the characters. So, her copyright also meant she was the only person with the right to produce and sell a film of her story. Again, she didn't do this herself. She gave permission of a film production company to make and sell the film in return for payment. Without copyright, anyone else could have printed copies of the book as soon as it was published. And anyone could have copied the film or shown it in cinemas. Those people could have made money from the story without the author benefiting.
On the basis of the given information about J.K. Rowling, answer the following questions:
(a) Which concept has restricted anyone else to use the film or shown it in cinemas?
(b) Explain the advantages that an individual can derive from the above identified concept?