When arguing that small industries generate a large volume of employment, the essential implication is that they are generally more labour-intensive and less capital-intensive compared to large industries. This means that for the same amount of investment (capital), small units tend to employ more workers than large units. This measure is often referred to as employment elasticity or employment per unit of capital.
When we argue that small industries generate large volume of employment, what we essentially imply is that :
Asked in OPSC CS Prelims 2019 · Topic: Industrial Sector (Micro, Small and Medium Enterprises (MSMEs) Sector: Importance, Challenges, and Government Initiatives)
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Answer: B. The number of workers employed per unit of capital is large in small unit than in a big unit
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