Role of small business in rural india class 11

Asked by admin @ 20/08/2021 in Accountancy viewed by 487 People

Explain some role of small business in rural India.

Answered by admin @ 20/08/2021

Some of the main feature of the role of small business in the development of the rural areas:

1.More employment: These are labour oriented Enterprise .thus, more labour is required in this industry.In the rural area ample labour is available .some of the people in rural areas remain unemployed for the whole year,some other do farming for a part of the year and reamain idle for the rest of the period.Small business are helpful to provide employment for both the categories of these people.

2.Economic strength:Small business provide Economic Strength to the rural areas in the two ways . Firstly,in these business a limited amount of capital and other resources are required.Secodaly,they provide employment to the unemployed .So they come out of the Trap of unemployment and become financially.

3.Better utilisation of local resources :In rural areas resources like labour, Barren land ,raw material either remain unutilised or used in a very less quantity.With the establishment of small industry better utilisation of these resources is possible .

4.Equal distribution of income:With the establishment of these business the income of the country is not just concentrate with some handful city Industrialist but it is also distributed among many small rural Industrialist.This help to reduce the gap between the rich and the poor in the country .

5.Promotion of standard of living :With the establishment of a small business in the rural,villages get many types of facilities like employment ,electricity water ,roads, education ,Bank Modes of transport ,etc.In such a situation promotion of the standard of living is certain..

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