Outside of jobs and investment, what are the advantages of small industries development in poor countries?Small industries developement have a contribution to economic growth in terms of employment...

Outside of jobs and investment, what are the advantages of small industries development in poor countries?

Small industries developement have a contribution to economic growth in terms of employment and also investment.My query is to what else can be other advantage of of these development on poor countries?

Asked on by faithbanny

1 Answer | Add Yours

pohnpei397's profile pic

pohnpei397 | College Teacher | (Level 3) Distinguished Educator

Posted on

In addition to jobs and investment, the development of small industries in a company can have many benefits for the country’s political and economic systems.  These benefits include:

  • More innovation.  As small industries attempt to grow, they can innovate in ways that big corporations or governments cannot. 
  • Less corruption.  It is possible that a rising number of small industries will put pressure on the government to be less corrupt.  Government will be less dependent upon large companies that pay large bribes.  This could lead to a cleaner system.
  • A more diverse economy.  If there are many small industries, the economy is not so dependent upon one sector.  This makes the economy stronger and less susceptible to being hurt by changes in a single sector.

We’ve answered 318,928 questions. We can answer yours, too.

Ask a question