Definition of Tiny Industry
Tiny industry refers to a very small-scale industrial unit where the investment in plant and machinery is less than Rs. 25 lakhs, regardless of its location
. This category is a subset of small-scale industries and is characterized by minimal capital investment, limited workforce (typically less than 50 employees), and often managed by family members rather than professional managers
Key Features of Tiny Industry
- Investment Limit: The total investment in plant and machinery must be below Rs. 25 lakhs
- Ownership and Management: Usually operated as sole proprietorships and managed by the owner or family members
- Employment: Generally employs fewer than 50 people
- Location: No restrictions on location; can be set up anywhere
- Nature of Operations: Often labor-intensive, using local resources and simple technology
- Examples: Small workshops, handicraft units, local bakeries, and other micro-manufacturing businesses.
Comparison: Tiny Industry vs. Small Scale Industry
Feature| Tiny Industry| Small Scale Industry
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Investment Limit| Less than Rs. 25 lakhs| Up to Rs. 1 crore (Rs. 100 lakhs)158
Employees| Fewer than 50| Can be higher, but still limited
Ownership| Sole proprietorship/family-run| Sole, partnership, or small company
Management| Owner/family| Owner or professional managers
Technology| Simple, labor-intensive| May use more advanced machinery
Summary
A tiny industry is a micro-enterprise with very low capital investment and limited workforce, playing a crucial role in local economies and providing employment at the grassroots level
