Financial Performance of Small Scale Enterprises in Chittoor District of Andhra Pradesh

Small-scale enterprises play a key role in the industrialization of a developing country. This is because they provide immediate large-scale employment and have a comparatively smaller markets to be economic; they need lower investments, offer a method of ensuring a more equitable distribution of national income and facilitate an effective mobilization of resources of capital and skill which might other-wise remain unutilized; and they stimulate the growth of industrial entrepreneurship and promote a more diffused pattern of ownership and location. Small scale industries function as ancillaries to large scale industries. They produce parts, components and accessories required by large scale industries. This paper consists of structure and pattern of assets and liabilities, financial performance of SSEs in Chittoor district of Andhra Pradesh. The statistical tools like simple percentages, averages, linear growth rates, and ratio analysis are used to evaluate the financial Performance of the selected sample units.