Question

What is the difference between small scale and large scale industry?

Answer 1

Hint:
To set up any industry whether a small scale or a large scale industry there are some prerequisites such as land, labour, electricity and much more resources and goods. As per the investments in the set up of an industry it is defined as small scale or large scale industry.

Complete solution:

Small scale industry:

- Definite capital investment is made in its resources and goods in the small scale industry.
- Small scale industry is a Labour-intensive industry.
- Need a small geographical area.
- Small scale industry requires semi-skilled labours.
- In a small scale industry, raw materials are procured from local suppliers.
- The main objective of planting a small scale industry is with less investment to generate employment opportunities.
- Few examples of small scale industries are Bakery, Ice cream making, paper cup making, candle making, pickles making, woodworking etc.

Large scale industry:

- Large scale industry requires a huge investment in its resources and goods.
- Large scale industry is a capital intensive industry.
- Need a large geographical area.
- Large scale industry requires highly skilled labours.
- The main objective is to produce consumer goods and capital goods.
- Few examples of Large scale industry are Iron and Steel industry, Oil refineries, Automobile industry, Constructions, Jute industry, etc.

Note:
As per the investments in the set up of an industry it is defined as small scale or large scale industry. Definite capital investment is made in its resources and goods in the small scale industry. Examples of small scale industries are Bakery, Ice cream making, paper cup making, candle making, pickles making, woodworking etc. Large scale industry requires a huge investment in its resources and goods. Examples of Large scale industry are Iron and Steel industry, Oil refineries, Automobile industry, Constructions, Jute industry, etc.