Learn All About Small Scale Franchising Opportunities
India is the country of small scale industries. More than 90 percent of industrial units are made up of small scale industries. Small scale industries or SSI are units which function on a small scale or a micro level. They provide manufacturing, services or production all at a small scale. They are often unorganized and without any corporate board backing them.
These companies are formed either on an ownership basis or lease basis. A lease of such a company could be similar to a franchise and in today's day and age, when franchising is one of the safest and most profitable businesses, leasing a small scale unit might be a good idea. Let's first look at some features of the small scale industry.
1. Labor-intensive
Small scale industries are often categorized as labor-intensive. Most small scale industries are labor-intensive as they provide employment to local manpower. They focus on manual work due to lack of other resources.
2. Locally Sourced Material
Small scale industries source their raw materials locally and provide products or services to direct consumers or other manufacturers or service providers.
3. One-man Oriented
All small scale industries are owned by a single person or a partnership firm. They are run and managed directly by the owners, which gives them the flexibility and freedom to run the show the way they want. This flexibility enables them to adapt to a constantly changing economic environment.
4. Requires Lesser Capital
Small scale industries require much lesser capital than other business opportunities. These are not as capital-intensive and focus on other resources and cheaper and local methods of production.
These are some of the major defining characteristics of a small scale industry. Investing in a small scale franchise would greatly enhance your portfolio by investing in local resources and creating indigenous products and promoting local resources. Let's look at the factors you should consider before developing a small scale franchise business partnership.