1. Productive resources (feed, seed, fertilizer, equipment, energy, pesticides, machinery, etc.)
2. Agricultural commodities – (raw and processed commodities of food and fiber)
3. Facilitative services (credit, insurance, marketing, storage, processing, transportation, packing, distribution, consultancy, soil testing etc.).

1. India is endowed with varied ago-climate, which facilitates production of temperate, sub-tropical and tropical agricultural commodities.
2. There is growing demand for agricultural inputs like feed and fodder, inorganic fertilizers, bio-fertilizers.
3. Biotechnology applications in agriculture have vast scope in production of seed, bio-control agents, industrial harnessing of microbes for bakery products.
4. Export can be harnessed as a source of economic growth. As a signatory of World Trade Organization, India has vast potential to improve it present position in the World trade of agricultural commodities both raw and processed form. The products line include cereals, pulses, oilseeds and oils, oil meal, spices and condiments, fruits and vegetables, flowers, medicinal plants and essential oils, agricultural advisory services, agricultural tools and implements, meat, milk and milk products, fish and fish products, ornamental fish, forest by products etc.
5. At present processing is done at primary level only and the rising standard of living expands opportunities for secondary and tertiary processing of agricultural commodities.
6. The vast coastal line and internal water courses provides enormous opportunity for production of marine and inland fish and  ornamental fish culture gaining popularity with increase in aesthetic value among the citizens of India..
7. The livestock wealth gives enormous scope for production of meat, milk and milk products, poultry products etc
8. The forest resources can be utilized for production of by products of forestry.
9. Beekeeping and apiary can be taken up on large scale in India.
10. Mushroom production for domestic consumption and export can be enhanced with improvement in the state of art of their production.
11. Organic farming has highest potential in India as the pesticide and inorganic fertilizer application are less in India compared to industrial nations of the world. The farmers can be encouraged and educated to switch over for organic farming.
12. There is wide scope for production and promotion of bio-pesticides and bio-control agents for protection of crops.
13. Seeds, hybrid and genetically modified crops, have the highest potential in India in the future, since the productivity of high yielding varieties have reached a plateau.
14. Micro-irrigation systems and labor saving farm equipments have good potential for the years to come due to declining groundwater level and labor scarcity for agricultural operations like weeding, transplanting and harvesting.
15. Production of vegetables and flowers under green house conditions can be taken up to harness the export market.
16. Trained human resources in agriculture and allied sciences will take on agricultural extension system due to dwindling resources of state finance and down sizing the present government agricultural extension staff as consulting services.
17. The enhanced agricultural production throws open opportunities for employment in marketing, transport, cold storage and warehousing facilities, credit, insurance and logistic support services.

1. Production
2. Retailing
3. Distribution
4. Personal services
5. Professional services
6. Financial
7. Franchising

1. Ease of formation
2. Exposure to financial risk
3. Ability to raise capital
4. Tax treatment of income
5. Continuity of business upon the death of owner.

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Entrepreneur

Many economic theories emphasize the significant role played by individual entrepreneurs as they combine talents, abilities and drive to transform resources into profitable undertakings. Joseph Schumpeter was the first major writer to highlight the human agent in the process of economic development. He believed that the economy was propelled by the activities of persons who wanted to promote new goods and new methods of productions or to exploit a new source of materials or new market not merely for profit but also for the purpose of creating. Likewise, Arthur W. Lewis contended that economic growth was bound to be slow unless there was an adequate supply of entrepreneurs looking out for new ideas, and willing to take the risk of introducing them.
The relation between self-sustained growth of an economy and entrepreneurship was further discussed by W.W. Rostow when he claimed that, “economic growth was the result of an interesting process involving the economic, social and political sectors of society, including emergence of corps of entrepreneurs who are psychologically motivated and technologically prepared regularly to lead the way in introducing new production functions in the economy’’.
As it is, experts as have variously described the entrepreneur

1. Service
2. Profit
3. Community participation
4. Growth
5. Subsidiaries

1. Characterized by smallness
2. Involves lesser capital
3. Mostly one man venture
4. They are highly diversified – wide range of products
5. Wide dispersal geographically

1. They are the important sources of competition and challenge the economic power of larger firms
2. They broaden the distribution of economic and political power and does not result in concentration of power
3. They are the sources of innovation and creativity
4. They offer career opportunities to those, who are happiest and most productive in the unstructured environment of a small company
5. Provide the dynamism, innovation and effectiveness that lead to the productive economic system
6. There exists vast agribusiness opportunities in developing economy of India
7. Generating employment with minimum investment
8. Promoting export
9. Control over production widely distributed
10. Develop risk takers

1. Less capital outlay but more employment generation
2. Does not require sophisticated technology
3. Facilitates decentralization and dispersal of business units
4. They offer a wide range of choices to consumers
5. Can serve specialized needs
6. Utilizes the resources in full without wastage

1. Inadequate management ability
2. Inadequate finance
3. Poor competitive position
4. Uncertain business continuity

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Organization and Administration

Organizational structure and administration for promotion of SSI in India are out lined below:

At national Level, under Ministry of Industry an exclusive Department of Small Scale & Agro and Rural industries exists since 1991 for the promotion and development of small-scale industries. The Office of Development Commissioner (Small Scale Industries) has been functioning within the Ministry of Industry since 1954 as an apex / nodal organ and provides link between the Ministry / Department and field organizations.  Since 1991 it has been working as an attached office to the Department of Small Scale & Agro and Rural Industries.

Development Commissioner (Small Scale Industries)

The Small Industries Development Organization (SIDO) headed by the Additional Secretary & Development Commissioner (SSI), being an apex body for formulating policies for the development of small-scale industries in the country is playing a very constructive role for strengthening this vital sector.  It functions through a network of SISIs, Branch SISIs, Regional Testing Centres, Footwear Training Centres, Production Centre, Field Testing Stations and specialized institutes.  It renders services such as:

Over the years SIDO has served a very useful purpose as a catalyst of growth of small enterprises through its vast network of field organizations spread over different parts of the country.

Small Scale Industries Board

The range of development work in Small Scale Industries involves several Department / Ministries and several organizations of Central / State Governments.  To facilitate coordination and inter-institutional linkage, the Small Industries Board has been constituted.  It is an apex advisory body constituted to render advice to the Government on all issues pertaining to the small-scale sector. The Industry Minister of the Government of India is the Chairman and the Board comprises among others State Industry Ministers, some Members of Parliament, and Secretaries of various Departments of Government of India, financial institutions, public sector undertakings, industry associations and eminent experts in the field. The Board was last constituted on 26.9.1998 with 93 members besides the Chairman.  The term of the Board is for two years.

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Small Industries Service Institutes (SISIs)

There are 28 SISIs and 30 Branch SISIs set up in State capitals and other industrial cities all over the country.  The main activities of these institutions are as follows:

SISIs and its Branches have common facility workshops in various trades.  There is at present 42 such common facility workshops attached to SISIs / Branch SISIs.

Some Current Problems Worrying Small Businessmen

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Business Failure May Result From One or More of the Following Weakness