Question

Give reasons for the following.

The government has been consistent in encouraging the growth of small scale industries.

Answer 1

The government has been consistent in encouraging the growth of small scale industries because:

1. They are highly labour-intensive and generate massive employment opportunities, which helps in reducing rural and urban unemployment.
2. They require significantly less capital investment compared to large-scale industries, making them suitable for a developing economy.
3. They promote balanced regional development because they can be easily established in rural and backward areas, which helps curb rural-to-urban migration.
4. They ensure a more equitable distribution of wealth and income, preventing the concentration of economic power in the hands of a few large corporations.
5. They facilitate the effective mobilization of local resources and tap into grassroots entrepreneurial skills that might otherwise remain unused.