Question

Answer in brief.

Write any four advantages of the Small Scale Industry.

Answer 1

Advantages of Small Scale Industries.

→ Large Employment
→ Less Capital Requirement
→ Contribution to Export
→ Opportunities for Entrepreneurship

1. Large Employment: Small Scale Industries has huge potential to create employment opportunities. They are labour intensive and use more labour than other factors of production. Their gestation period is also low and can provide employment opportunities to a large number of people.
2. Less Capital Requirement: SSI requires less capital as compared to large scale industries. SSI can be started by small entrepreneurs with limited capital resources.
3. Contribution to Export: Nearly 40% of the industrial exports are contributed by SSI. A product such as hosiery, knitwear, gems and jewellery, handicraft, coir products, woolen garments, processed food, chemical, and allied products and a large number of engineering goods contribute substantially to India’s exports. Products produced by SSI are used in the manufacturing of products by large scale industries which are exported. It contributes directly and indirectly to exports and helps to earn valuable foreign exchange.
4. Opportunities for Entrepreneurship: Small Scale Industries provide opportunities for entrepreneurs with limited capital as it requires less capital and lower investment in technology and machines as compared to large scale enterprises. Therefore, small entrepreneurs can start small scale industries easily.