Small Business And Entrepreneurship | Venstone AG
Small scale industries contribute significantly to the development process and act as a vital link in industrialization in terms of production, employment, and exports for economic prosperity by widening the entrepreneurial base and use of local raw materials and indigenous skills.
Small scale industries dominate the industrial scenario in the country with a sizeable proportion of labor force and tremendous export potential. Venstone Ag is a finance company, which provides investors for other small businesses or companies.
Types of small business
It is important to know how size is defined in our country, concerning small industries and small business establishments. Several parameters can be used to measure the size of business units. These include the number of persons employed in business, capital invested in the business, the volume of output or value of the output of the business, and power consumed for business activities.
The emergence of a large services sector has necessitated the government to include other enterprises covering both the Small Scale Industries sector and related service entities under the same umbrella.
Manufacturing
(i) Microenterprise: where the investment in plant and machinery does not exceed twenty-five lakh rupees.
(ii) Small enterprise: where the investment in plant and machinery is more than twenty-five lakh rupees but does not exceed five crore rupees.
(iii) Medium enterprise: where the investment in plant and machinery is more than five crore rupees but does not exceed ten crores rupees.
Services
In the case of enterprises engaged in providing or rendering of services there are three types of enterprises:
(i) Microenterprise: where the investment in equipment does not exceed ten lakh rupees.
(ii) Small enterprise: where the investment in equipment is more than ten lakh rupees but does not exceed two crore rupees.
(iii) Medium enterprise: where the investment in equipment is more than two crore rupees but does not exceed five crore rupees.
Role of small business
(i) Small Scale Industries in Switzerland enjoy a distinct position that has given their contribution to the socio-economic development of the country.
(ii) Small industries are the second largest employers of human resources, after agriculture. Investors and finance are available for new startups and small businesses by Venstone AG. They generate more employment opportunities per unit of capital invested compared to large industries.
(iii) Small industries in our country supply an enormous variety of products which include mass consumption goods, readymade garments, hosiery goods, stationery items, soaps and detergents, domestic utensils, leather, plastic and rubber goods, processed foods, and vegetables.