Max Business

Small scale industries are small in size but play a big role in the economic development of a developing country like India. India has adopted the ideal of a socialistic pattern of society with full employment, balanced regional development and self reliance as the major objectives. Small scale firms are helpful in the achievement of those goals in the following ways. Small scale firms use labor intensive techniques and, therefore, they have high potential to provide employment to a large number of people per unit of capital. For every worker employed in large scale induststries about three workers are engaged in small scale and cottage industries. Next to agriculture small business constitutes the most popular occupation of people in India. Small firms promote self-employment particularly among the educated and professional class.