Importance of small scale industries in economic development. Important Role of Small Scale Industries in Indian Economy 2019-01-07

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THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA

importance of small scale industries in economic development

Of course, increase in number of units, production, employment and exports of small- scale industries over the years are considered essential for the economic growth and development of the country. Ogudipe 1987 said that small scale industries cover all those area and large scale industries, they perform the following roles: i Ensure more rapid employment ii Develop indigenous entrepreneurship and increase utilization of local resources. It enables the growth of the people and helps to improve the living conditions around the area with the required facilities. As small units can use resources more efficiently to the full capacity without any wastage, they may have higher allocation efficiency. The appointment of Karve Committee by the Planning Commission in 1955 was the first major effort towards the improvement of small scale industries. For instance, in united states of America, according to Heilbrone 1989 , the small scale business is little indeed.

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Role of Industrial Development in Economic Growth

importance of small scale industries in economic development

There is a great demand for handicraft goods in foreign countries. Of course, this is not true, and this text is here to explain the real truth behind failures of those who lost a lot of money. As a result, the economy reaps the benefit of improved technology. With services sector having 73. There are some questions however that should be asked where answers could suggest solutions to the problem under study. Most new small business enterprises are not very attractive prospects for banks, as they want to minimise their risk profile.

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THE ROLES OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA

importance of small scale industries in economic development

In administering the questionnaires, the respondents were quite cooperative but some of the respondents have to fill under close supervision to avoid irrelevant answers especially where the questions were open ended. . Portability A small-scale business is generally portable, making it easy to set up and tear down. For many families, it is the only source of livelihood. Assessing the size and composition of small business, their marketing, financial, legal and management aspect government intervention an other environmental factor which are likely to affect the small scale industries. The traditional village and cottage industries as distinguished from modern small scale industries are mostly unorganised and located in rural areas and semi-urban areas. According to Osubor 1994 the short coming of small business enterprises are problems of gaining capital for expansion, the manager unable to meet or secure the necessary collateral for credit worthiness problems pf continuity is small business especially in Africa, the death of the owner business organizations keep untold secrets of the business, and therefore may bring abrupt and to the business.

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Role of Small Scale Industries in Economic Development

importance of small scale industries in economic development

This clearly shows the importance of small-scale industries in the economic development of the country. In this way deficiency of investment can be made up. Industrialisation and Urbanisation: Urbanisation succeeds industrialisation. It helps the job seekers to turn out as job givers. Once can not help, but agreeing with the authors considering the fact that, Enugu state is known for its education potentials and many university graduates are produced and they have over the years faced employment problems. Because it provides fertilizers pesticides, seeds, machinery etc, agricultural sector these things promotes agricultural development Industrialization provides machinery like tractors, thrashers, harvesters, bulldozers, aerial spray etc.


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Role of Small & Medium Enterprises in Economic Development

importance of small scale industries in economic development

Another factor or rationale for the development of small scale enterprise is based on the fundamental role of entrepreneurship and management skill in development. Apart from creation of jobs which small scale enterprises is traditionally known for, it is in the process of producing the raw materials needed for the larger industries. Thus, instead of taking a welfare approach, this sector seeks to empower people to break the cycle of poverty and deprivation. Comply with all applicable tax laws and regulations and render regular returns to the appropriate authorities. They should put aside any doubt they have in doing so and look at the positive side of enlisting in the exchange. Moreover, the enterprising Small manufacturer has to scrape together capital where he can find it.

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Micro, Small and Medium Enterprises (MSME): The Importance in Indian Economy

importance of small scale industries in economic development

It enables the firm to upgrade and innovate quickly. Other developed countries apart from Nigeria also realized the importance of small scale industries and because of it attached much importance to its economic development. That is why many people who graduated as engineers and because of unemployment have formed to shoes making or fashion designing have been very successful. Those on certificate course pay five thousand Naira N5,000 , while the diploma course worth twelve thousand naira N12,000. People migrate from rural and semi urban areas to these highly developed centres in search of employment and sometimes to earn a better living which ultimately leads to many evil consequences of over-crowding, pollution, creation of slums, etc. It helps to improve the growth of local entrepreneurs and self-employed professionals in small towns and villages in India. Our study indicates that 1 at the aggregate level, exports do not have any significant impact on output of the non-export sector, thereby nullifying the popular export-led growth hypothesis at the aggregate level in India; 2 When we disaggregate exports into merchandise and services exports, the latter has positive spillover effects on the non-export sector of the economy.

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What is the Role and Importance of Small Scale Industry in India?

importance of small scale industries in economic development

It's just a matter of who is willing to take risk. Infact economic self reliance is not only discussed extensively in Nigeria but indeed in all the. Other roles of small scale business include; i Conversion of traditional industry check 1996 agree that investment in small scale industry helps to transform the traditional sector. Fast Growth of National and Per Capita Income: Industrial development helps in the rapid growth of national and per capita income. Development of Science and Technology: Industrial development encourages the development of science and technology. The twin oil shocks during the 1970s undermined the mass production model, which triggered an unexpected reappraisal of the role and importance of small and medium sized enterprises in the global economy. The loss of production and man-days are comparatively less in small- scale industries.

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THE ROLE OF SMALL SCALE INDUSTRIES IN THE ECONOMIC DEVELOPMENT OF NIGERIA

importance of small scale industries in economic development

This is in no less measure a credible achievement. Contribution to exports Small Scale Industries contribute nearly 40 per cent to the industrial exports of the country. But before the drugs are purchase the director will be informed, and that will enable him to acquire from the cashier if profit are made or not before purchase are made, if profits are made, more of such drugs will be purchased and vice versa. Thus small scale business becomes the next option since they stood a better chance of offering a more personal relationship with customers as well as socio economic satisfactions of societal needs. Small firms not only provide a production out let for enterprising and independent minded people, but they are also the most efficient form of business organization in industries where the option size of the production unit or sales out let is small. Hence, it is not necessary to import the machines from abroad.

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Role of Industrial Development in Economic Growth

importance of small scale industries in economic development

It is easy to maintain personal contact with employees. That net withstanding, the is also part of our attempt at self reliance. Growth in exports has been particularly commendable from mere Rs. The entrepreneurs of small units play a strategic role in commercialising new inventions and products. He earns all and risks all. New roads, dams, buildings and parks are constructed.

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Advantages or Merits of Small Scale Industries

importance of small scale industries in economic development

Why some small business succeed iii. It encourages democracy and self-governance. These profits can be reinvested for expansion and development. It provides employment to skilled and unskilled people in India. Large scale migration puts tremendous pressure on land, water and other resources in urban areas leading to poor quality of life. If you are renting that space your landlord. The slow growth of industrial sector is responsible for widespread poverty and mass unemployment.

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