The characteristic features of small scale industrial units are discussed below:

(i)    Closely-held Ownership. Capital is supplied by an individual or a small group of individuals. As a result of this, the management of a small enterprise is in the hands of an individual or a partnership firm or a private limited company.

(ii)    Personal Character. A small scale enterprise is identified with its owners. Management is provided by the owner/owners. All the benefits of a sole tradership concern are available to a small business.

(iii)    Local Area of Operation. The area of operation of small units is generally local only as they have less capital and less market facilities at their disposal.

(iv)    Location. Small units are generally located near the centres of consumption and/or the sources of raw materials.

(v)    Predominance of Labour. The small scale units are more labour intensive in contrast with the large scale enterprises which are capital intensive. They need less capital investment in fixed assets.

(vi)    Unorganized Labour. Though small scale units are labour-intensive, they employ less number of workers as compared to big industrial units. As a result, the workers working in small units are generally unorganized. They do not form trade unions to protect their economic and social interests.

For more help in Characteristics of Small Business click the button below to submit your homework assignment