Role of small-scale industries in economic development
A small-scale business enterprise plays an essential and important role in the development of the country. It helps to strengthen the country’s economy and also ensure a balanced growth of the country. Small-scale industries may help to eradicate poverty, unemployment and ensures the growth of the particular region through employment opportunities and so on. The balance of the country depends upon the growth of many businesses and if there is no regular growth, the economy of the country will decrease and creates economic tension within the country. So it is necessary for any country to have a balance of economic development with the increased growth of a business enterprise. The major roles played by the small-scale industries in the economic development of a country are as follows;
- Employment Opportunities: Small-scale businesses helps in providing employment opportunities for the local people situated around that particular area. It enables the growth of the people and helps to improve the living conditions around the area with the required facilities.
- Utilization of available resources: Some area or regions are rich in many natural resources, capital resources, human resources where a business setup is possible and aids in the growth of the business. These target areas are identified in order to use the available resources for the well-being of both the business and the people.
- Ensures Women’s growth: It helps to support many women by providing employment opportunities and makes women self-dependent. It understands the important role of women in the family and the country and enables them to grow along with the business. Thus many small-scale businesses help in supporting women empowerment and their growth in various fields.
- Technology Adoption: Nowadays, the technology up gradation for any business enterprise is important to ensure the growth opportunities. It enables the firm to upgrade and innovate quickly. Small business helps to adopt new technology and innovations rapidly than that of large complex business organizations.
- Capital Utilization: In order to run any business enterprise, the flow of capital and proper utilization of capital is vital for the smooth functioning of the business. It helps to utilize the local resources and helps in the development of the particular region.
- Supplementary function: It plays a supplementary function to many large-scale industries by producing small units required in the product assembly line on a sub-contracting basis. This helps many small businesses to find roots to ensure their growth and existence in the country.
- Supports Exports: It helps to support exports of many industrial goods right from the food materials to other metal products. Exports enable the business enterprise to run successfully with the increasing order of exports to many countries and thereby facilitating the growth of many industries.