(i) A small scale industry is comparatively a small unit employing less than a hundred labourers and using small machines. These are generally concerned with production of consumer goods of daily use, i.e., flour mill, rice mill, bakery, etc. (ii) Advantages: (a) They provide employment to the people. (b) They do not require much capital. Disadvantages: (a) There is no proper marketing organisation to sell their products. (b) The poor village artisans are exploited by the money-lenders on whom they have to depend for the purchase of raw materials.