Question

Small scale industries require less amount of capital

Answer 1

Explanation:

small scale industries need less capital investment as they produce a low no. of goods which in turn will need low raw material supplies

Answer 2

Explanation:

1) The production of small scale industries is less.

2) Generally unskilled labours are employed.

3) As production is less raw material requirements is also less.

4) In a place like India where capital formations is low small business is suitable.

5) Due to small in size such form of business can easily adopt to changing atmosphere. This process flexibility. It can easily change their working style without much loss as compared to large businesses.

Thus SSI, requires less amount of capital.