13 Policies (measures) to promote the small scale industries in developing countries
- Providing credit facilities by the government. There is need for the government to provide credit facilities to the small scale industrialists at subsidized interest rates. This helps to reduce on the cost of borrowing hence increased investment in small scale industries.
- Providing a favorable investment climate by the government. This is in form of reducing taxes on raw materials and other inputs used by small scale industries so as to reduce the production costs.
- Economic liberalization. There is need for the government to remove unnecessary restriction from economic activities to allow small scale industrialists to carry out production and marketing of their products freely with limited interference.
- Construction and rehabilitation of the basic social and economic infrastructure. This is in form of transport network, communication facilities, electricity, water facilities, financial facilities etc. This is aimed at facilitating production, distribution and marketing of goods and services by people involved in small scale industries.
- Establishment of organizations to promote investment in small scale industries. There is need to promote and strengthen organizations like the Private Sector Foundation (PSF), Uganda Investment Authority (VIA) and Uganda Manufactures Association (UMA) in order to promote the small scale industries in the country.
- Market expansion. There is need for the government to expand market for the goods and services produced by the small scale industries through economic integration, market research, promoting trade exhibitions and encouraging economic diversification.
- Improvement in the level of technology. There is need for the government to encourage and promote the use of better techniques of production which are cost effective and are in line with the social and economic requirements of the society. This helps to increase on the quantity and quality of the products from small scale industries.
- Training of the local manpower. This is aimed at equipping the local man power with the required entrepreneurial skills necessary for efficient management and allocation of resources for the development of small scale industries.
- Protectionism in form of high import tariffs. There is need for the government to restrict the importation of those products produced by the local small scale industrialists by imposing high tariffs on them. This helps to protect the small scale industries from the competition resulting from high quality and cheap imported products
- Ensuring Macro- economic stability. There is need for the government to control inflation so as to ensure price stability as a way of promoting the small scale industries in the country in form of reduced production costs.
- Increasing the exploitation of natural resources. This is aimed at obtaining raw materials required for production of goods and services small scale industries.
- Ensuring political stability. There is need for the government to promote political stability by ensuring good governance, negotiating with rebel groups and granting them amnesty in case they surrender etc. This helps to create a conducive environment for the prosperity of the small scale industries.
- Providing gazetted work places. There is need for the government to provide land where people involved in the small scale industries can carry out production activities.
CATEGORIES Economics
TAGS Dr. Bbosa Science
