Friday, 14 January 2022

Role of small business in development of country

 Small scale industries play a vital role in the socio-economic development of the country. The average contribution of small industries in country accounts around 90 percent of the total industrial sector. The small industries in our nation contribute up to 50 percent in the total gross industrial income and contribute around 40 to 45 percent of the total export.

The heavy contribution by the small industries in our nation plays a major role in offering a vast possibility for the human employment resource along with providing the variety of productions and many more.

Small scale business and start up industries contribute largely in the territorial development of the nation. It contributes in the territorial development by utilizing the limited available resources and indigenous technology.

Small start-ups are counted among the major sector for providing vast opportunities for the creation of employment resources in India. Further it is itself an great opportunity of entrepreneurship for the creative and talented peoples. The small sector industries and the start-ups are also the major sector contributed for keeping the traditional artisan of the nation alive along with strengthening the weaker section of society in the nation.

Here in this guide, we are listing the major contribution as well as the role of the small industries that  they plays for the strengthening of the nation.

Role of small start up businesses and small scale industries in the development of nation

 

Following are some points highlighting how the small scale industries and the start ups contributes in the development of the nation:

Regional development

The small scale business exists in both the urban as well in rural area and plays major contribution in the regional development of that area. In the development of rural area, small start-ups plays crucial role like providing employment, development of the regional area, offering service in the local area, giving them multiple income sources and many more. The small scale businesses are major sector contributing in reducing the unemployment. And, this further helps in development of the country. Government take several steps for encouraging and promoting the setting up of agro based rural industries. These industries contribute majorly in the reduction of inequality of income in country.  

National development

Every country, whether developed or developing, need entrepreneurship. For the developing countries, the entrepreneurship initiations are even more essential for begin the process of development, and the process of the development as well as the entrepreneurship need to sustain for keeping the growth graph of developing countries high.

Also, a new entrepreneurial beginning brings some resources and facilities in the nation and thus contributes in the strengthening of the nation.

Opportunity for self employment

Entrepreneurship does not emerge spontaneously; rather, it is the actually the outcome of the dynamic process of interaction between a creative mind, and surrounding environment.

The entrepreneurship helps in generating the option of self employment for the talented peoples and thus helps by contributing in the development and the strengthening of the nation.

Employment opportunity

The new starting of the small scale entrepreneurial business and the small industries contributes majorly in the generation of the employment opportunities in the nation. It offers employment options to the regional peoples and thus also plays crucial role in development of the regional area.   

Variety of production

Small industries in our nation supplies wide range of products that includes readymade garments, mass consumption good, hosiery goods, stationery items, soaps and detergents, domestic utensils and many more. This way the small scale industries contributes in offering the wide range of products and services in the nation leading to less dependencies on the foreign products. Also, the small scale industries are the one to lead in providing the raw material to the medium and large scale industries for further production.

Effective use of local technology

Small industries produce simple products using the basic technology and depend on local resources. They are the make shifter and keep experimenting with the available technology to figure out the best of their use in production.

 Women empowerment

Small scale offers much employment opportunities to women sector of the society as well. There are several small business operate by women including the textile and restaurants and many more. Online businesses give massive employment opportunity to house hold women. It is very crucial for the growth in women empowerment sector of the developing country like India.

Growth in export

Small scale businesses are generating large income from exports of goods. In modern times, almost every nation is globalising their businesses via the internet. The small scale industries are also more active on the internet and international trading and exporting their products to other nation leading to growth in the export as well as increase in the GDP of the nation.

Earn with minimum capital

The small scale industries and the business idea provides the peoples with the option to start their own business by investing a very little capital as well. Most of the peoples avoids starting their own business and keeps continuing the jobs because of lack of capital. But the small scale business idea helps peoples to think out of box, start something their own by investing a very little amount of capital, and promote self employment along with generating employment opportunities for others.   

Government assistance to small business units

Since the contribution of small businesses are high in generating the employment, taking GDP high, and increase in export, government is also showing keen interest in this sector and providing their assistance for promoting the small scale industries.

Bottom

So these are some major points highlighting the role of the small scale industries in the development of the nation. The small scale industries are becoming major interest of the government as well because of their high potential for taking the graph of the growth of the nation to top.

 

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