Importance of small-scale industry and enterprise in economic development –
Small-scale enterprise is a business that is smaller in size. It is independently owned and operated and is not dominant in its field of operation.
Small scale industry is an industry that is independently owned and operated and is not dominant in its field of operation. Small-scale industry improves the growth of the country by increasing urban and rural growth. If any amount of capital is invested in small scale industries it will help in reducing unemployment and increasing self-employment. Major importance is: Increases production, Increases total exports, Improves the employment rate, Opens new opportunities, Advances welfare etc.
Overall, Small business plays an important role in the socioeconomic development of a country in the following ways:
- Source of innovation;
- Industrial development;
- Increasing per capita income;
- Proper use of natural resources;
- The base of large business: Large industries wastages or by-products can be put to use.
- Proper use of capital;
- Decentralization of industry;
- Earning foreign currencies;
- Protection to urbanized tendency;
- Increasing living standard;
- Reducing monopoly effect;
- Training field;
- Contributing to raising the GDP of the country;
- Make better use of locally available skill, expertise and technical know-how;
So, these are the various ways through which small business/small-scale industry/small-scale enterprise plays a vital role in the country’s economic development