Question

Mushroom farming and handicraft business are small-scale industries. How can these industries help to reduce poverty and bring about economic development?

Answer 1

Small-scale industries bring economic development in the following ways:

1. Small-scale industries use intensive labour techniques and processes. Therefore, small-scale industries provide employment opportunities.
2. Small-scale businesses provide job opportunities for laborers and craftspeople. The employees’ technical ability comes from their experience working in such an environment.
3. It helps mobilise and utilise local resources, such as raw materials, manpower, etc.
4. It promotes self-employment and the spirit of self-reliance in society.
5. It promotes the growth of underdeveloped regions and disadvantaged groups within society. The development of small-scale industries is crucial for promoting entrepreneurship.