Role of Commercial Banks in the Promotion and Development of SSI's

All these happenings owing to the development of small-scale industries in developing economies have been increasingly realized over the past several years. In small organizations the efficiency in production is attained by intra-plant economies through an effective coordination and supervision. Not only they are important for the vitality of the business sector, they are also important in terms of employment creation, income generation and output growth. Small units are more flexible and readily adaptable to the changing circumstances. Small firms also conserve non-renewable resources unlike big ones. Small scale units also prevent city-ward migration through balanced regional development. Moreover, they also serve the local needs and make use of locally available resources1 and small scale enterprises do not require huge capital and hence are suitable for a country like India. These industries have a talent of dispersal. They can be accessible to the remote rural areas of the country and do not lead to regional imbalances and concentration of industries at one place, which is responsible for the concentration of many economic resources such as entrepreneurship and capital.