Small Business and Enterprises
Small business can be classified into: Manufacturing Enterprises and Service Enterprises. Enterprises engaged in manufacture/production of goods are called manufacturing enterprises and enterprises engaged in rendering/providing services are called service enterprises. Manufacturing enterprises are further classified based on their investment in plant & machinery into Micro Enterprises- investment upto ` 25 lakh, Small Enterprises- investment above ` 25 lakh & upto ` 5 crore, Medium Enterprises- investment above ` 5 crore and upto ` 10 crore. Service enterprises are further classified based on their investment in equipment into Micro Enterprises- investment upto ` 10 lakh, Small Enterprises- investment above 10 lakh & upto ` 2 crore, Medium Enterprises- investment above ` 2 crore and upto ` 5 crore. Small business plays a significant role in generation of employment, reduction in income inequalities, product diversity, balanced regional development etc.
Small business in rural India undertake agricultural activities like farming, agricultural labour and also non- agricultural activities like wage employment, self employment etc . They also contribute to other socio- economical aspects like dispersed development of industries and linkage with other sectors of economy. Government assistance to small industries and business units are in the forms of institutional support and incentives. There are various support measures and programmes meant for promotion of small and rural industries. . Government incentives are offered in the following areas as land, power, water, sales tax , octroi, etc.