ABSTRACTOne of the core areas of economic development is bringing forth latent talent and a strong entrepreneurial spirit. For the past couple of years entrepreneurship development is considered as the priority area in the development policy in India. With India’s food production likely to double in the next decade, there is an opportunity for large investments in food and food processing technologies and so are the opportunities for entrepreneurs in this field. The present study has been undertaken to understand the basic requirements for establishment of small scale food production unit. A market survey was administered regarding preference of snacks commonly available in the market among adult consumers (n=100). Majority of subjects (50%) stated that they consume bread, biscuits and cookies most often among all the given options and 34% subjects also admitted that they consume biscuits/bread/cookies on daily basis. It was also inferred that majority of subjects (50%) had chosen nutritive value of snacks as their first preference for the selection of the snacks and considered breads (considering the variety available), biscuits and cookies as healthy options to be consumed on regular basis compared to the fried options of samosa, pakoda etc. As per the inference of the above market survey, bakery establishment was selected to study the requirements. To understand the requirements of a small scale food production unit data was gathered by personal interaction and discussion with experts and secondary data was collected from various published and unpublished sources. A referral document (i.e. a booklet) was designed to help the entrepreneurs who want to open their bakery establishment. This document provides information on location criteria of business for conducting bakery production, infrastructural requirements, resources (such as base ingredients, equipments for different bakery products, their resourcing, manpower skills and training, understanding markets, finances and loans that could be made available through various schemes and other supportive programmes by various agencies like ministry of food processing’s support for training and capacity building in the area). Case study of a micro food processing unit associated with an NGO was also carried out by the researcher to better understand the requirements and functioning of a small scale food production establishment. Case study was carried out through a checklist that was prepared to study various details of the unit. It was found that the organisation is working hard towards achieving better infrastructure and other facilities for the expansion of the unit.