Small is Profitable
INDIAN EXPERIENCE :--
INDIA is predominantly an agricultural country. A proper development of small-scale industries is vital for the healthy growth of our Economy. Small business has played a very crucial role in transforming the Indian economy from a backward agrarian economy to its present stature. The country can profit by Japan’s bold experience in this direction, which has been spread over more than three decades. The small-scale sector has emerged as an engine of growth in most of the developing and newly industrialized countries of the world. In India the SSI has played a catalytic role in socio-economic transformation of the country. This sector has exhibited tremendous capacity for employment generation, greater resource use efficiency, and technical innovation, promoting inter-sectoral linkages, raising exports and reducing regional imbalances. Small business has low capital investment and therefore the risk of the entrepreneur is limited and he can afford to be venturesome. Moreover small businesses have a small gestation period so returns are also quick. The flexibility inherent in this sector allows the entrepreneur to work aggressively if a project seems promising or change course in case things do not work out. In his manner the small business functions as a nursery for developing entrepreneurial talent. The cumulative effect of these innumerable entrepreneurs leads to economic growth and higher standards of living, which transform the society. Its benefits range from creating job opportunities for millions of people, including many with low levels of formal education. It has nurtured the inherent entrepreneurial spirit in far flung corners of the nation resulting in the growth and development of all regions. It has been instrumental in raising the standard of living of the multitudes. The small scale sector has contributed specifically in the following areas:…In developing economies it is through a large number of such...
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