Question

Answer in brief.

State any four points of importance of Small Scale Industry/Business.

Answer 1

Important of Small Scale Industry.

→ Job opportunities
→ Regional Balance
→ Maximum use of Natural resources
→ Reduces migration

1. Job Opportunities: SSI is the second largest industry which creates huge employment opportunities because it can be operated with a minimum amount of capital. SSI can be run with basic and potential skills. This is a boost for a labour surplus country like India.
2. Regional Balance: In India, all regions are not developed due to the lack of industrialization. SSI can be set up with a minimum amount of capital. Small industries manufacture product using simple technologies, locally available resources, material and labour. Thus, they contribute significantly to the balanced development of the country.
3. Maximum use of Natural Resources: Small scale industries are labour intensive. They utilize available natural resources and raw materials from local areas. Such use of local natural resources minimizes the cost of production which result in reasonable price of goods.
4. Reduces Migration: Small Scale Industries can create employment in a rural area. SSI is also the best example of self-employment. Therefore, the migration of people from rural to urban can be reduced or minimized.