Role of Small-Scale Industry ill Underdeveloped Countries
The small-scale industry has a special role to play in an under-developed country. Considering the resource position of the under-developed countries, the small-scale industries fit excellently in their development plans for several reasons: (i) They have a vast employment potential; (ii) Tile offer limitless opportunities for self-employment; (iii) They are capital-light and capital is what such countries lack; (iv) Riley promote capital formation: (v )They are light.(I’i) They are import-light and cut the country’s import bill .(vii) Thy are quick-yielding so that inflationary pressures are contained: (viii) They promote decentralization of industries; (ix) The decentralized industries can bring· about even distribution of income and wealth; (x) They can lend valuable support to large-scale industries.(xi) By diverting surplus labor from land they can reduce pressure on land.