role of small business in role in India
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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.
Role of Small Businesses in India
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.
4. Utilisation of local resources
The awareness of needs and demands of the local community make the small businesses emerge in rural and semi-urban areas. Small business is community-based and generally focused on fewer areas.
This gives the opportunity to the businesses to utilise the local resources like raw material, local talent, labour and demographic opportunities. The utilisation and the mobilisation of the local resources help elevate the economic condition of that particular area.
5. Flexible and Adaptable
New business opportunity is captured at right time. The strength to adapt and grow in the face of upcoming changes gives an edge to the small businesses. Also, being the manufacturer and distributor, small businesses develop a sense of personal touch with the area of business and their customers. Limited in size and finance, there is little or no government intervention.
Role of Small Businesses in India
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.
4. Utilisation of local resources
The awareness of needs and demands of the local community make the small businesses emerge in rural and semi-urban areas. Small business is community-based and generally focused on fewer areas.
This gives the opportunity to the businesses to utilise the local resources like raw material, local talent, labour and demographic opportunities. The utilisation and the mobilisation of the local resources help elevate the economic condition of that particular area.
5. Flexible and Adaptable
New business opportunity is captured at right time. The strength to adapt and grow in the face of upcoming changes gives an edge to the small businesses. Also, being the manufacturer and distributor, small businesses develop a sense of personal touch with the area of business and their customers. Limited in size and finance, there is little or no government intervention.
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small business play a very improtant role in india because it give employment to more then one person and also provide a better facility in needed area like ruler areas or in villages where a big businessmen cannot like to invest .....
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