Question

Attempt the following.

Explain the importance of small business.

Answer 1

Following are the importance of Small Business.

1. Supply of Raw Materials to Large Industries: Finished goods of Small Scale Industries is the raw material for large scale industries. E.g., headlights supplied to automobile industries. Small Scale Industries supply raw materials to large scale industries and they get easy market available to their product.
2. Balanced Development between Rural and Urban Areas: With the help of locally available raw materials and labour, more and more Small Scale Business can be started in rural areas. This helps to a reduced regional imbalance between urban and rural areas.
3. Opportunities to Young Generation: Young generations by using their creative skills make the product unique in the market. Small scale business gives an opportunity to youngster to show their creativity and abilities to prove themselves
4. Large Employment: India is the second-largest populated country after China, which faced problem of unskilled and semi-skilled labour. Small Scale Industries operate with more labour and less capital, which can accommodate more manpower to solve the employment problem.
5. The utilisation of Domestic Resources: Small farmers can start their own unit of the small industry by using locally available raw materials. He can get self-employment and involve his family members too.