The small scale sector is assuming greater importance with every day. This is so because this sector has inherent characteristics of higher employment potentiality, increasing income levels, increasing standard of living, lesser capital requirement, depending on untapped locally available resources, dispersal of industrial units etc. It is imperative to promote this sector to bring salvation to the chromic problems which are detrimental to the economic development of our country is endowed with plenty of natural resources and human resources, but unfortunately they are not put to use properly towards the progress of our economy.

Realizing the core importance of this sector the Government of India has formulated industrial policies in favor of the entrepreneurs and has been offering packages of incentive and intending financial assistance to them which has resulted in a good number of financial institutions and allied agencies have come into being to meet the needs of entrepreneurs.