Small Business sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. This sector not only plays a crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income. The Small Business sector has been a significant contributor to the countries with generating the highest employment growth as well as accounting for a major share of industrial production and exports.

Small business sector across the globe are fuelling economic growth and are the key instruments for promoting equitable development. Small Business sector account for about 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. On the domestic front, small business sector plays an essential role in the overall industrial economy of the country. In recent years, the sector has been consistent in registering a higher growth rate compared with the overall industrial sector.

The Government of India has developed key strategies to promote and support competitiveness in the small business sector, thus leading to have a positive impact on the sector. The key attributes of the segment such as high contribution to domestic production, significant export earnings, low investment requirements, operational flexibility, location wise mobility, capacities to develop appropriate indigenous technology, import substitution, contribution towards defence production, technology oriented industries, and competitiveness in domestic and export markets etc. help them tap opportunities in various sectors.

Source: Resurgentindia