How to Start a Small Industry

Small scale industries are important part of a healthy economy.

They play a very important part in the entire growth of an economy.

Small scale businesses that produce goods for the consumption of the locality play a very important role in the economy. Small industries actually sounds small but they actually play a vital part in the overall growth of the economy. They can be characterized mainly by the unique feature of the labor intensiveness of the business. They also have small numbers of employees. Small industries’ importance increases significantly due to many employment generating potentials.

Advantages of Small Industry

Small industries are especially specialized in the consumer commodities’ production. It is characterized with the adaptation of labor intensive approach for the production of commodities. These industries don’t have enough capital so they use the power of labor for the producing the goods. The main advantages of these small industries are that they absorb the surplus labor amount in a country who was not being employed by the large industries. It helps the economy to scale down the extent of unemployed people as well as the poverty. Also, small industries help in the distribution of national income more efficiently and equally among the other participants in the production of goods that their medium and large counterparts.

Small industries also aid the economy in the promotion of balanced development of the industries across the country. They also help in the development and honing of skills of various level of society for entrepreneurship. Furthermore, small industries act as important medium for the effective utilization of the resources and skills available locally. They enjoy many help as well as encouragement from the local and federal government through the protection they give from the direct competition of large enterprises, provision of financial assistance, much lower tax structure, and many more.

Additional Strengths and Merits

If you are thinking of establishing a small industry by manufacturing some products and selling them to the public then you can be on the road of profits. Small industry is a profitable business even it is small. Government supports them. It gives opportunity to individuals who want to be an entrepreneur. Establishing a small industry has its strengths and merits. You are required less capital, labor-intensive character, optimum adoption of technology, operation in the rural or backward areas, contraction of the regional imbalances, flexibility in operations, quick adaptability in the environment, and export orientation. They also spread widely the knowledge and trainings of entrepreneurship, distribute the economic wealth of a country equally, and utilize the local available human as well as material resources and experience and expertise. Small industries are really beneficial to both people and economy.


  • RAJENDRA said on December 22, 2012
    i want to start small scale industry . BHUSAWAL, MAHARASHTRA, INDIA
  • Pushpa ratna rai said on December 5, 2013
    I am from hill area darjeeling WB so what is suitable small industry in this place. Please suggest.
  • Bahar Ahmed said on December 11, 2013
    i am from hill area jammu & kashmir WB so what is suitable small industries in this place. please suggest.
  • Manish Wadekar said on May 21, 2016
    I'm from yavatmal, maharashtra. i would like to know the best small business for me to start here.
  • jyoti kumar said on May 29, 2016
    I am from jharkhand.i would like to know the best small business for me to start here.
  • basant chauhan said on June 23, 2016
    I am in HP shimla at Rampur bushar what opp is me to start small industries. Pls suggest me.
  • Debendra nath Hansdah said on July 16, 2016
    Debendra bath hansdah I am From hill area dist-mayurbhanj (similipal) odissa so what is suitable small industry this place please suggest me
  • m sridhar said on July 20, 2016
    m.sridhar, andrapradesh rly kodur. i want to start small industry please guide me which is suitable this area
  • Rajesh kumar Giri said on July 27, 2016
    I am from Odisha, I want to start a baby diaper or chappal or spice's company pls suggest me how I start that and what is suitable for me , pls
  • this m.v.krishnaiah said on September 26, 2016
    I am from andra pradesh nellore near kavali. please tell me small industry suitable this area please guidelines me


    (All the above fields are required.)