how do small scale industries prove to be the second largest employer?

Small Scale Industries usually works on techniques which are more labour intensive and less capital intensive. It means there is more employment of human resources and less investment in machines and capital. After agriculture sector it is the small scale industries sector which is the second largest employer. It relies on manpower for its different activities relating to production, manufacturing e.t.c. Large Scale Industries go for techniques and methods which are more capital intensive and less labour intensive that is why they need less manpower. It is because of this reason small scale industries has become the second largest employer.

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