1Associate Professor in Economics, Department of Economics, Vels University, Chennai
Online published on 8 March, 2019.
The important role-played by Small Scale Enterprises in promoting the economic development of India in recent decades especially in providing more jobs for rural people and bringing about a more equitable distribution of national income has been well recognized While the majority of small enterprises depend on retained profit and informal source of credit for expansion, with growth in size, the need increases rapidly for external finance for working and fixed capital. In recent years, following the successful example of Japan, the Republic of Koria and India, in mobilizing and channeling finance to SSI, many schemes are experimented with a wide array of new financial institutions, instruments and innovations. The significant role that this sector plays in the development strategy of India's economy is not only based on the fact of its being, labour-intensive and capital saving in character but also in 3 areas namely Production, Employment and Export.
Economic Development, Working Capital, Production, Employment and Export
