Question

Justify the following statement.

Small Scale Industry requires less amount of capital.

Answer 1

1. The production of Small Scale Industries is less.
2. General unskilled labours are employed.
3.  As production is a less raw material requirement is also less.
4. In a place like India, Where capital formation is low, small business is suitable.
5. Due to small in size, such a form of business can easily adapt to a changing atmosphere. This promotes flexibility. It can easily change their working style without much loss as compared to large businesses.
6. Thus, SSI requires less amount of capital.