Question

Advantage of small scale industry​

Answer 1

Answer:

Advantage of small scale industry:

1) Requirement of less capital.

2) Contribution to industrial output.

3) Contribution to exports.

4) Earning foreign exchange.

5) Equitable distribution.

Answer 2

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(i) Close Supervision:

The small producer can himself supervise the minutest details of the business. Nobody will be allowed to spoil machinery or waste materials. The master’s eye is everywhere. There can be no fraud or idleness anywhere.

(ii) Economical Management:

It is unnecessary to engage large staff. Verbal messages will take the place of written orders which are generally half understood. No elaborate accounts need be kept. All this means a great saving.

(iii) Personal Attention to Customers:

The small businessman sends away his customers perfectly satisfied. He personally attends to their orders and at once removes difficulties and misunderstandings. Personal contact is pleasant and profitable.

(iv) Personal Touch with the Employees:

The employer is in constant touch with his employees. He can promptly attend to their difficulties or grievances and remove them without delay. Peaceful relations can be thus easily maintained, and strikes and lock-out avoided. This makes the business smooth and prosperous.

(v) Greater Adaptability:

If conditions of trade change, the small producer can change his front. He is in a position to take quick decisions. He has to consult nobody except himself.

(vi) Independence:

The small-scale producer is happy that he is indepen­dent. He will not like to work as a subordinate in a big business. This sense of independence is a great incentive for hard work.

(vii) Nature of Demand:

The small producer has an advantage over the large producer when the demand is either small or is constantly changing. He has thus a sphere of his own where he has advantage over the large-scale producer.

(viii) Nature of Industry:

There are some industries where the personal factor is very important, e.g., tailoring. It is quite advantageous to run such business on a small scale.

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