Question

a 5. Kavya opened a small manufacturing unit of garments in Mana (A hilly area of Uttarakhand), Explain the role of small business in backward areas. (3)​

Answer 1

Answer:

this is answer

Explanation:

Role of Small Business in IndiaIndustrial Units: In an economy like India, the majority of the industrial units are because of small business. This today accounts for more than 95% of the units. Almost 40% of the total industrial units are contributed because of the small industries. The small businesses are bagging around 45% of the total exports that happen from India.Labor-oriented: Small businesses generate a lot of labor. They give many employment opportunities to those living in rural and semi-urban areas. The small businesses help to lift the weight of unemployment in any economy. This is a significant role that they play predominantly in a country like India. India has a large labor force and the Indian government also encourages small industries that employ and utilize labor. The government encourages small businesses by drafting various policies and offering low-interest rates.Human Resource: The small businesses rank next to agriculture to employ in the Indian economy. As compared to many big companies, the small businesses are capable of generating the maximum employment opportunities for each unit of capital that is invested. This makes the small business the second largest employment generator in the economy.Utilization of Local Resources: The local community needs and demands let the small businesses to emerge in the semi-urban and the rural areas. The small businesses are community-based, and these are focused to work for and generate employment in a few areas. This lets any business utilize local resources like talent, raw materials, demographic opportunities and labor. When there is ample mobilization and utilization of any local resources, this helps to improve the economic condition of a particular area.Flexible and Adaptable: Any new business opportunity gets captured at the correct time. Small businesses get an edge when it comes to adapting and growing in the light of any upcoming changes. The small business usually is the manufactures and the distributors, and they are thus capable of generating a personal touch with the business and with their clients as well. There is also no government intervention in the case of small businesses as these are limited in finance and size.Promotes development & growth: Development of the region plays an important role in contributing to the country's development. The establishment of small businesses in any region or area helps to uplift the lifestyle, earning of the people residing. Businesses bring in more exposure to foreign markets, production scale and the overall evolution of state as well as workers. 

Answer 2

The role of small business in backward areas are:

Explanation:

• Generate employment opportunities for people in and around the area.
• Mitigate disguised unemployment and alleviate poverty from the region.
• Enables equitable income distribution, and reduces inequalities of income.
• Help accelerate development and growth in the area.
• Facilitate rural development and reduce migration of people in search of jobs or opportunities for making a living.
• Improves standard of living of people.
• Increase tax revenue for he government to use it for better development of the area.
• Best utilization of local resources for generating jobs and fulfilling consumer demands in the area.