Employment

Small scale firms use labour-intensive techniques and, therefore, they have high potential to provide employment to a larger number of people per unit of capital. For every worker employed in large scale industries, 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. They also provide employment to agriculture who remain idle during a part of the year. In fact, the healthy growth of small scale industries can effective approach to the pressing problem of unemployment in the country. Several empirical studies have revealed that the employment generating capacity of small scale industries is about ten time more than that of the large scale industries.




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