How do small scale enterprise help in removing regional disparity?
This can be explained in the context of the following statement:
1.government provide various concessional /grants for setting up industry in region where there is no industry .Thus to get benefit they set up there and remove regional disparity
2.Large scale industry (like rourkela steel)is often established close to the source of raw material .This is because raw material requirement of large scale industry is very huge .Its transportation from distant place implies high cost of production .SSI, on the other hand ,shows locational flexibility. It is therefore referring to inter-regional equality
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How do small scale enterprise help in removing regional disparity?
Introduction:
Small-scale enterprises play a crucial role in removing regional disparities by promoting economic development in underdeveloped regions. These enterprises are typically characterized by their size, investment requirements, and employment generation capacity. They have the potential to address the imbalances between developed and underdeveloped regions by creating opportunities for growth, employment, and income generation.
Key Factors:
Several key factors contribute to how small-scale enterprises help in removing regional disparities:
1. Job Creation:
Small-scale enterprises are labor-intensive and have the potential to create a significant number of jobs. By establishing and expanding such enterprises in underdeveloped regions, they provide employment opportunities for the local population. This reduces migration to developed regions in search of jobs, thereby reducing regional disparities.
2. Income Generation:
Small-scale enterprises enable individuals to generate income and improve their economic well-being. By establishing businesses and engaging in productive activities, people in underdeveloped regions can earn a livelihood and contribute to the local economy. This helps in reducing poverty and income disparities within the region.
3. Business Development:
Small-scale enterprises contribute to the development of the local business ecosystem. They promote entrepreneurship by encouraging individuals to start their own businesses. This leads to the growth of a network of interconnected enterprises, suppliers, and service providers, fostering economic development in the region.
4. Utilization of Local Resources:
Small-scale enterprises often rely on local resources, both human and natural, for their operations. By utilizing these resources efficiently, they contribute to the development of the region. This encourages the sustainable utilization of local resources and reduces dependency on external sources, thus addressing regional disparities.
5. Strengthening Local Economy:
Small-scale enterprises help in diversifying the local economy by introducing new industries and sectors. This reduces the dependence on a single industry or sector, which is often the case in underdeveloped regions. By creating a more robust and diverse economy, small-scale enterprises contribute to overall regional development.
Conclusion:
Small-scale enterprises play a vital role in removing regional disparities by creating employment opportunities, generating income, promoting entrepreneurship, utilizing local resources, and strengthening the local economy. By focusing on the development of underdeveloped regions, these enterprises contribute to a more balanced and inclusive growth across the country. It is essential to support and promote small-scale enterprises through appropriate policies, financial assistance, and skill development programs to maximize their impact on regional disparity reduction.
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