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Small Industries

A small scale industry or cottage industry stands for the industry that is generally set up in home. There the family members of the proprietor assist him whether completely or partly.

In Pakistan, firms employing less than 10 persons are classified as small provided its assets do not exceed 2 million rupees. The cottage and small scale industry may be rural or urban.

In present industrial atmosphere, a small enterprise may be defined differently for different purposes, whatever criterion is used to distinguish a Small from a large manufacturing enterprise; an element of arbitrariness is involved in it. The provincial Small Industries Corporation define a small enterprise in terms of an upper limit on the value of fixed assets, excluding land, but upper limit on the value of fixed assets has been changing over time, which at present is Rs. 5 million.

Importance of Small Scale and Cottage Industry

Cottage or household industries hold an important position in the rural set-up. They have their own blacksmith, carpenters, potters, weavers, artisans and goldsmiths. Cottage industries have also gained immense importance in cities and town, because there is great demand for hand woven carpets, brass wares, embroidered work, wooden furniture, cotton made articles. These items have valuable demand in international market.

The share of small industries account for 30% of GDP, added in manufacturing sector. It employs nearly 78% of industrial lab our force. Moreover, all small scale & cottage industries are owned by private entrepreneurs and billions of families of Pakistan are depending upon them for their living. it earns about 25% of Pakistan’s total exports. So following are main advantages of small scale industries ;

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