Write role of small business in India.
Answers
Answer:
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: The role of small business in India are as follows:
1. Major part of portion in industrial units: About 95% of the industrial units in the country consist of small industries whereas 40% of the total industrial business output is contributed in parts by these industries. 45% of the total direct and indirect exports from India are contributed by those industries.
2. Very low cost of production: The cost of production in such industries is very low. Because of low overhead expenses, establishment cost, development cost, and running costs are low.
3. Quick decisions: Smaller size of organizations enables business firms to take quick, exact, and timely decisions to capture more new business opportunities at the perfect time.
4. Good personal relations: These inherent strengths and personal touch enables small-scale industries to maintain public relations with both the customers and the employees.
5. Simple and flexible production techniques: Simple and flexible production techniques are used by these business enterprises which make them much more suitable for customized business production, which means designing a product according to the tastes and preferences of the customers resulting in their self-satisfaction.