Question -
Answer -
Small scale businesses help the economy in following ways:
1. Small scale industries especially rural and cottage industries play a major role in providing employment opportunities to the population in rural areas. It is very helpful for people who are economically weak.
2. Small scale industries play a role in distribution of income by providing the opportunity to set up industries all across the country.
3. As small scale businesses are active throughout the year they provide employment opportunities round the year and hence help in combating seasonal unemployment and improve conditions of the rural people.
4. Small scale businesses help drive the growth of economy. It accounts for 45% of overall exports which greatly contributes to economy.
5. It helps in developing the rural areas and stops inflow of rural population into urban areas in search of employment.