Small business enterprises exist in every country of the world. But in a developing country like India, the small scale sector occupies a special place in the industrial structure. In our country man-power is abundant but capital is relatively scarce. Small scale industries tend to be labour-intensive or capital saving. There fore, they provide better opportunities for generating employment, for better utilization of local resources, for wider dispersal of industries and for equitable distribution of national income.
In view of the potential of small business, Government of India is committed to the growth of small scale sector in the country.