A Note on Small Enterprises: Innovation and Technology Response

Abstract

The small scale industry sector has emerged as the most dynamic and vibrant sector in recent times. The contribution of this sector accounts for over 30 per cent of the total export from Indian and provides sizeable employment. It is recommended that the service sector in small scale industries provides immense potential for generating employment and therefore there is increased necessity to impart greater vitality and growth impetus to this sector, especially in relation to production, upgradation of technology, employment and exports. Small scale sector by nature being labour intensive, tends to be high in manpower absorption and therefore provides ample employment opportunities. Empirical studies reveal that in the 20th century the small scale enterprises have contributed tremendously to the product innovations. Technological progress have come through in the area of computer, microelectronics, pharmaceuticals, agro processing industry and a range of other manufacturing and services.