Industrial Estates Definition as “the organizing, housing, and servicing industries, a planned clustering of industrial enterprises offering standard factory buildings in advance of demand and a variety of services and facilities for occupants. ” In short, an industrial estate is a place where entrepreneurs are provided with the necessary facilities and factory housing by the government to establish their industries. The first and most important industrial estate was established in 1955 in Rajkot, Gujarat.
Industry Estate Features Importance
- The tract of land subdivided and developed into factory plots or shed.
- It is a planned clustering of industrial units.
- They can be developed in urban, semi-urban, or rural areas.
- It may be large, medium, or small.
- Can be established by the government, or by cooperatives, or even by private agencies.
- It provides several common infrastructural facilities such as water, power, roads, training, banks, repairs and maintenance, etc.
What is Industrial Estate Advantage Importance?
1. Mutual Co-Operation: All industrial units located in an industrial estate face common problems and seek to achieve common objectives.
2. Balanced Regional Development: It is possible to secure a balanced regional development by developing industrial estates in industrially backward areas.
3. Economies of Scale: It arises because all the industrial units enjoy common infrastructural facilities like water, roads, etc. As the size of the industrial units increases, the costs of estate development and administration per unit of each facility decrease.
4. External Economies: Several industrial units are clustered together in an industrial estate. This enables them to enjoy the benefits of agglomeration and external economies like improved transport facilities, availability of trained labor, repair facilities, power, and water, etc.
5. Saving Of Time and Effort: An individual entrepreneur is relieved of the trouble of searching for suitable space.
6. Entrepreneurial Development: Industrial estates reduce risks and increase profitability through internal and external economies.
7. Low Investment: Even a small entrepreneur can acquire an industrial plot or shed on rent or hire purchase basis.
8. Fewer Risks: Since all units enjoy common facilities and low capital investment, risks are relatively low.
Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»