Question

Explain what micro industry is and why it is important to acknowledge.

Answer 1

Micro industry is a part of MSMEs or micro, small and medium industries. These micro industries act as a major job provider in many of the developing countries and is a source of income for their low income population .

Around the world the contribution of small firms has been almost the same for all the countries .Eg : in Brazil, micro and small industries contribute about 20%of the GDP.

Similarly in south Africa the gdp contribution of these industries is 24%.

Though there is no globally accepted definition of micro industries, different countries have different criteria. In European union, 10 or less than 10 are considered micro industries .In US, the number of workers is less than 5.So different countries have different criteria for the micro industries.

Need to acknowledge the micro industries

MSMEs have been recognised as engines of economic growth in the world. These MSMEs or micro industries have contributed to greater employment and higher GDP.

In Japan almost 70% of wage earners in manufacturing sector are a part of SMEs.

The importance of this is seen more in countries like China. In China, the major exports have been from these micro and small industries.

As said earlier , In many developing countries like India and China, these industries generate large scale employment which is important given the high population in these countries.

To sustain and increase exports, these industries either act as ancillary industries to large industries by providing them raw materials etc.

Also these micro industries reach till the lives of the minority groups empowering them for their growth to free them from poverty.

Micro industries improve competitiveness and productivity of the workers in these sectors thereby forming a link to improve the wages and productivity in other sectors also.

(You can comment for doubts)