Briefly state the role of small business in India.
The role of small business in India is discussed below:
1. Employment:
Rural small-scale businesses can generate a lot of employment in the country. Less capital and low risk are particularly helpful in building this business. That is, such organisations help to solve the problem of unemployment on the one hand and eliminate family poverty as a supplementary occupation.
2. Less equipment:
Small-scale businesses do not require much equipment for production. No need to import valuable equipment from abroad. That is why foreign currency is saved. As a result, people are particularly encouraged to form rural small-scale businesses.
3. Decentralisation:
Small-scale enterprises are spread in different rural areas of the country. As a result, unhealthy environment is not created. The logic of decentralisation introduced by Mahatma Gandhi is particularly important in relation to small-scale industries.
4. Worker-owner relations:
Small businesses usually employ workers from the local area. As a result, worker-owner conflicts are very less and work speed increases. A good relationship develops between the workers and the owners.
5. Less capital:
Small businesses can be established with less capital. Lack of capital and adequate land is the main barrier to industrial development in underdeveloped and developing countries. In that case, smale-scale businesses with less capital play an important role in the economic development of the country.
6. Low risk:
Small businesses are limited in size and require less capital. Naturally, the risk of loss and future uncertainty of this business is very low.
7. Low production cost:
Small businesses produce goods with lower production costs. Because the raw materials and labour needed to produce the goods are available locally.
8. Organisational benefits:
Special organisational or management opportunities are available in the management of small-scale businesses. That is because in most cases the owner himself takes responsibility for managing the business.
Liked our post?
We are available with lots and lots of commerce-related content.
[…] Answer: Click here […]
[…] Answer: Click here […]