Question

Explain the role of small-scale industries in poverty alleviation.

Answer 1

1. Employment generation: Small scale industries provide steady employment generation. They create jobs to the unemployed people thereby reducing poverty.
2. Income generation to the poor: The encouragement of small-scale industry has been considered important for income generation. Poor people can derive more incomes from small scale industries.
3. Economic development: The role of small-scale industry is crucial in economic development. These industries provide an overall investment climate and, thus, economic stability.
4. Rural Development: One of the coordination activities of the national poverty alleviation programme is village economic development solutions. Small-scale industries economically empower rural areas.
5. Increased productivity: Small and medium enterprises help in alleviating poverty by increasing productivity.