5. Explain briefly the role of small industries in rural India.
6. Describe the scope of small business in India.
7. Highlight the role of the government in promoting small business
Answers
Answer:
In every economy, small businesses are a million little integral parts of a lavish car which help the engine keep running but all that someone can see from the outside are the four tyres (i.e big corporations) that give the car speed. It is confirmed that 65-75% of the innovation in India come from the industry of small business. Let us learn about the vital role small businesses play in our economy and the problems they face
1. Industrial units
In an economy so enormous as India, 95% of the industrial units in the country consist of small business and 40% of total industrial output is contributed by these small industries. Again, small businesses bag around 45% of the total exports from India.
2. Labour-oriented
Small business provides immense opportunities in the rural and semi-urban areas. The weight of the unemployment faced by the Indian economy is lifted by these small businesses. It is one of the most important roles of them. Like any other economy having a large labour force, the Indian government also encourage the operations of small businesses to utilise the labour by drafting policies and establishing low loan interest rates.
3. Human resource
After agriculture, small businesses are the second largest employment provider in the Indian economy. In comparison to big corporations, small businesses generate the most number of employment opportunities per unit of capital invested. Therefore, they are the second-largest generators of employment in human resource.
Answer:
Role of government is to here is small business start as well as through Vin situation based on government .
Most of the local business also help to support tax base with business taxes as well as wages provided for employees