5 POLICIES TO BOOST SMALL INDUSTRIES

Small industries are the backbone of many developing economies and significantly contribute to the GDP. In such a competitive world, with all economies open to imports and exports, the survival of small businesses has become difficult. These small industries struggle to find their place in the existing sphere with lots of big industries. In order to support them, the government must initiate specific policies to ensure their survival and growth.

5 Policies To Boost Small Industries

Here are 5 policies to boost small industries that every economy should take. 

• Setting Regulatory body

  Almost every economy should first set up a regulatory body. A regulatory body is responsible for the growth and development of small and medium-scale industries. It should assist such industries and also manage the industry and frame its policies. 

  
  

• Regulatory policies

  Policies are formulated to define the principle action. The regulatory policies formed to assist small industries shall take into consideration the present scenario of each specific small-scale industry and then formulate policies. The policies must contain detailed information about how and when they will assist the industries. While financial support is important, policies relating to training, development, and promotion of small-scale industries must also be taken into account. 

  
  

• Financial Assistance

  The small industries, due to a shortage of funds, cannot produce quality products and meet the market demands. The financial crunches are also responsible for delays in production, lousy packaging, zero marketing and promotion, poor infrastructure, etc. Therefore, it is necessary to provide financial assistance to small and medium-sized industries. These are the people who usually belong to rural areas and lack a mortgageable asset. This leads them to borrow from money lenders at high interest rates, thus creating a debt trap for themselves. Creating banks or credit unions specifically for such small businesses can boost small industries' ability to run their operations. 

  
  

• Training and Development

  While small industries possess a lot of talent, they lack the knowledge of the business environment, so they cannot survive in the competitive world despite the quality of the products they produce. Therefore, they must be provided with appropriate knowledge and skills to assist small businesses in dealing with the business world. This can be done by the way of conducting training and development sessions by the government or the regulatory bodies. 

  
  

• Legal Assistance

  Due to financial limitations, small industries often struggle to resolve legal issues. They face challenges such as delayed payments, no payments at all, fraud, and many others. To resolve these, the government must provide special legal assistance to small industries. A court formed specifically to resolve small and medium industry issues can help them a lot. 

Small industries play a vital role in the development of economies. They strengthen the economy and uphold the country's cultural identity. If adequate assistance is provided to small businesses, there will be a lot more scope for them in the near future. The government should consider such industries and draft policies to foster their growth by promoting them.