Importance of Industrial Estate Prof Arjun B Bhagwat

Importance of Industrial Estate Prof. Arjun B. Bhagwat S. M. Joshi College, Hadapsar, pune-28 T. Y. B. Com 1

1. Common Facilities in Low Cost Ø IE provides infra. Facilities like power, water, sanitation, transportation, security, repairs, banking, postal services, technical consultancy, insurance………. . Ø Such facilities are availed in common & cheap rate Ø None of the industrial unit has to bear independently Ø This activity saves the capital investment Ø Also helps the owner to run his unit in an economically manner T. Y. B. Com 2

2. Risk Reduction Ø Units in IE face less risk than other large units Ø They get infrastructural facility at low rate Ø Insurance & security services are available easily Ø Technical, marketing & financial consultancy and advice exists Ø The govt. also make policy guidelines to support & protect Ø Owners help in respect to solve problems of other units T. Y. B. Com 3

3. Co-existence and interdependence Ø All units in an IE get linked with each others through production Ø The output of one unit becomes the input of another units Ø The staff of some units render useful services to other units Ø There is some type of business combination & outsourcing Ø Collaborative, joint venture, commercial & technical alliances Ø This makes expansion of production, sharing of work and Ø Also responsibility & undertaking mutually beneficial activities Ø Big work order can be obtained by large unit & shared by small units T. Y. B. Com 4

4. Saving of Time & Money Ø IE provide common facilities, amenities & services Ø Which enable them to run them economically & efficiently Ø The units develop co-operation among each others Ø The management committee of IE is an elected body Ø Which looks after the problems of the small units ØThis spirit of co-operation gives them strength to fight with problems Ø The unit-owners organize & collectively make efforts to solve their problems T. Y. B. Com 5

5. Development of Small Scale Industry Ø Small industrialists have limited capital Ø Due to which they can afford to spend on development of facilities Ø The absence of these facilities the efficient functioning of an unit is not possible Ø IE provide these facilities in common to all units Ø Also cost of its development & maintenance is shared by all units Ø Naturally, the small entrepreneur can enjoy these facilities in low cost Ø Entrepreneurs can run their units smoothly and efficiently Ø This results in to expansion and development of small industry T. Y. B. Com 6

6. Employment Generation Ø IE encourages self employment & entrepreneurship Ø It helps the small scale industry to develop fast Ø Thus, it widens up employment opportunities Ø It also helps for the devt. of complementary industry Ø Even the service industry also starts developing Ø When units are setup in IE, they require services (repairs, transport, insurance, Marketing, legal-technical-finance, advertise, warehouse) Ø This service sector also provide employment opportunities Ø IE thus cause to open up a wide spectrum of employment opportunities T. Y. B. Com 7

7. Regional & Balanced Development Ø Govt. establish industry in economic backward & undeveloped regions Ø Then, it offers subsidies, tax concessions & variety of benefits to units Ø This activity attract entrepreneurs to start their units such place Ø This process initiates industrialization & devt. of such backward regions Ø It also help for the decentralization of industries T. Y. B. Com 8

8. Development of Entrepreneurship Ø Infrastructural facilities available easily & cheaply Ø Industrial Estate done this Ø IE help to strengthen the backbone of entrepreneurship Ø IE creates nature & culture of entrepreneurship Ø It prepares the claimants for entrepreneurship Ø It inspires, supports & protects entrepreneurship T. Y. B. Com 9

9. Non-conventional Entrepreneurships Ø IE attract the ambitious people towards entrepreneurship Ø The people who do not have the family background of business Ø Also become first generation entrepreneurs Ø Due to the facilities and amenities of IE Ø Without IE the desire of enterprise of such people merely as a dream Ø IE helps & deep percolation of the spirit of enterprise throughout the society T. Y. B. Com 10

Thank You…… T. Y. B. Com 11