India is a developing country and in developing countries the scope of small scale industries are very wide.
It is contributing to the socio-economic development in the following wags
(i) Contribution in GDP Small industries in India account for 95 % of the industrial units in the country. They contribute almost 40 % of the gross industrial value added in the economy.
(ii) Contribution in Exports 45% of the total exports from India come from small scale industries. Gems and jewellery, handicrafts, sports goods, etc are some items of exports from small scale sector.
(iii) Employment Generation Small industries are the second largest employers of human resources after agriculture and generate more number of employment opportunities per unit of capital invested compared to large industries.
(iv) Variety of Production Small industries produce a wide variety of products ranging from mass consumption goods, readymade garments, hosiery goods, stationery items, soaps and detergents, domestic utensils, leather, plastic and rubber goods, processed foods and vegetables, wood and steel furniture, paints, varnishes, safety matches, etc. They also produce sophisticated items like electric and electronic goods, drugs and pharmaceuticals, agricultural tools and equipment and several other engineering products. Handlooms, handicrafts and other products from traditional village industries add to this diverse production from such industries.
(v) Regional Balance Small industries contribute significantly to the balanced development of the country as they produce simple products using simple technologies and depend on locally available resources. Both material and labour can be set up anywhere in the country.
(vi) Entrepreneurship Development Small industries provide opportunity for entrepreneur¬ship development in the country. The latent skills and talents of people can be transformed into business ideas with little capital investment and almost nil formalities to start a small business.

Risk is an essential part of every business : Every business is subject to one or the other kind of risk. No business can avoid risk. Though risk can be minimized but can’t be eliminated.

E-business has its own limitations as discussed below
(i) Low Personal Touch e-business lacks the warmth of interpersonal interactions and personal touch for satisfaction of customer. Thus, it is relatively less suitable mode of business for product categories requiring personal touch for convincing the customers such as garments, etc.
(ii) In congruence between Order Taking/Giving and Order Fulfillment Speed In e-business, orders can be placed at the click of a mouse, but the physical delivery of the product takes time. Customers are sometimes not patient enough to bear with this in congruence. At times, the users even get frustrated due to technical reasons when websites take unusually long time to open.
(iii) Need for Technology Capability and Competence of Parties to e-business The parties to be fairly familiar with computers and internet is required by e-business. The digital divide has thus limited the use of e-business.
(iv) Increased Transaction Risk Internet transactions occur between cyber personalities and it is difficult to establish the identity of the parties or know the location from where the parties may be operating, e-business is also risky due to additional hazards of impersonation and leakage of confidential information such as credit card details. Problems of ‘virus’ attacks and ‘hacking’ also pose security concerns in e-business.
(v) Resistance to Change The process of adjustment to new technology and new way of doing things causes stress and a sense of insecurity due to change. As a result, people may resist a change from traditional business to e-business.
(vi) Ethical Fallouts Companies use an ‘electronic eye’ to keep track of the computer files, e-mail account and the websites visited by their employees or others who use their network systems which is not considered right on ethical grounds.
But most of the limitations of e-business discussed above are in the process of being overcome. Websites are becoming more and more interactive to overcome the problem of ‘low touch.’ Speed and quality of communication through internet is being improved through communication technology innovations.
Efforts are on to overcome the digital divide through setting up of community tele-centres in villages and rural areas with the involvement of government agencies, NGOs and international institutions. Thus, we can say that despite limitations, e-business is here to stay and bring a positive change in the businesses, governance and the economies.
Even the transaction risks and data transmission risks are minimized with the use of secure payment sites, use of antivirus programs and encrypting of data to safeguard the customers

E-banking means any user with a PC and a browser can get connected to the banks’ website to perform any of the virtual banking functions and avail of any of the banks services. There is no human operator to respond to the needs of the customer.

Advantages:

1. E-banking provides services 24 hours, 365 days a year to the customers of the bank.
2. Customers can make some of the permitted transactions from office or house or while travelling via mobile telephone.
3. It develops a sense of financial discipline by recording each and every transaction.
4. Greater customer satisfaction by offering unlimited access to the bank, not limited by the walls of the branch and less risk as well as greater security to the customer as they can avoid travelling with cash.

 The capital obtained by issue of equity shares is known as equity share capital. It is the important source of obtaining the long term finance. Equity shareholders are the owners of the company. The rate of dividend is paid after meeting all other claims. They have a right to vote and participate in the management of the company. They enjoy the reward as well as bear the risk.
Merits :

1. Equity share capital doesn’t create any charge on the assets of the company.
2. Voting rights of equity shareholders assure democratic control over management of the company.
3. Equity share capital is to be repaid only at the
   time of winding up of a company and hence it is permanent capital of the business.
4. There is no burden on the company in respect of dividend payable to equity shareholders because it is not compulsory to pay dividend.
5. Equity shares are generally suitable for those investors who are willing to undertake risk for higher returns.
6. Equity share capital increases credit worthiness of the company and also provides confidence to prospective loan providers.