What are the role of small scale business in economic development?

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What are the role of small scale business in economic development?

They play a significant role in national economy by providing various goods and services, creating job opportunities, developing regional economies and communities, helping the competition in the market and offering innovation. …

What is the role of small business in Indian economy?

After agriculture, small businesses are the second largest employment provider in the Indian economy. In comparison to big corporations, small businesses generate the most number of employment opportunities per unit of capital invested. Therefore, they are the second largest generators of employment in human resource.

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What is the role of industries in economic development?

Main Sector of Economic Development: Industry is viewed as leading sector to economic development. We can have economies of scale by applying advanced technology and division of labour and scientific management. So production and employment will increase rapidly. This will bring economic growth and capital formation.

How do the small scale industries contribute to the socio economic development of India?

(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.

What is the role of small scale business in rural India?

Answer: Small Scale enterprises provide the numerous benefits in rural area. (ii) Employment for Artisans Cottage and rural industries play an important role in providing employment opportunities in the rural areas, especially for the traditional artisans and the weaker sections of society.

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What is small scale industries in India?

Small Scale Industries (SSI) are those industries in which the manufacturing, production and rendering of services are done on a small or micro scale. These industries make a one-time investment in machinery, plant, and equipment, but it does not exceed Rs. 10 crore and annual turnover does not exceed Rs. 50 crore.

What is the role of small business in improving economic condition of rural India?

What is small scale industry in India?

What is the main role of industry?

According to their main role: (i)Basic or key industries which supply their products or raw materials to manufacture other goods e.g. iron and steel and copper smelting, aluminum smelting. (ii)Consumer industries that produce goods for direct use by consumers – sugar, toothpaste, paper, sewing machines, fans etc.

What role does the industrial sector play in the Indian economy class 12?

Role of industrial sector in the development of Indian economy is as follows : Rapid growth in income : With the development of industries, per capital income will also increase. Industrial productivity is greater than agricultural productivity. As industries develop, employment opportunities increase.

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What are the role of small business in rural India?

They offer non-farm employment to the people. The small scale industries help to offer employment opportunities. They also help to curb the migration of rural people to urban areas by giving them ample opportunities in their rural areas. The small scale business also helps to meet the demand of the rural population.

How do small scale industries help in promoting rural development?

The development of small scale industries leads to industrialization in rural areas. By providing employment in rural areas, they help to check migration and overcrowding in urban areas.