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What Are the Best Tips for Small Scale Industry Development?

Esther Ejim
Esther Ejim

The best tips for small scale industry development are related to applications that can help in the growth and success of small scale industries. These small scale industries include those businesses that do not require the same type of capital outlay as large scale industries. They might include sectors like the printing industry, the supply of services like agriculture-related and automotive repair services, and other types of industries as well. Factors that can contribute toward the small scale industry development include efforts by the government to encourage growth of the sector through the provision of loans, alleviation of tax burden, and creation of ministries specifically dedicated to educating people about small scale industries.

One of the methods for small scale industry development is the provision of loans to those who may wish to venture into such small scale industries. The reason why this is so important is based on the fact that the lack of adequate capital is one of the main factors that contribute to the lack of development of small scale industries. Most of the entrepreneurs and prospective entrepreneurs lack the capital necessary for the establishment of the businesses that make up the small scale industry. Not only do they lack the capital, but they may also find it hard to obtain the necessary capital from financial institutions since they may not have any collateral or other means of securing such loans. When the government intervenes by providing special loans targeted toward these people, such loans will be provided to them with the understanding that the government will work out a system for securing these loans and a favorable system for the repayment of the same.

Woman posing
Woman posing

Another factor that can contribute to small scale industry development is for the government to establish tax regimes that will favor such small scale entrepreneurs. This might include tax reductions for some of these small scale industries and even tax exemptions as a means of encouraging growth in such industries. An example of this can be seen where the government is trying to encourage the cultivation of different types of food crop, something that can be achieved by reducing the tax that will be levied on the products from such endeavors. Efforts by the entrepreneurs themselves should compliment the efforts by other external bodies toward small scale industry development.

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