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The economy is divided into two i.e small and medium sizes industries. This chapter focuses on the features of these industries and how these are different from each other:

  • Size of Firm: The size of these small and medium-sized industries are categorized in different ways, according to statistical norms, turnover but the most commonly used criteria are the size of the manpower.
  • The culture within the Organisation : organizational culture means the values, ethics, beliefs followed by the employees of the organization. Both the small and medium-sized industries have different values to follow which make their culture different from the other.
  • Strategies and objectives: Both the firms have different goals and strategies to achieve that goal like in small scale industries, labor is treated as the major input in the production function.
  • Organizational technology: Diseconomies of the scale of small firms is arising because of the difference in organizational structure, market power, production technologies. Each type of firm has different technologies to adopt and follow.

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