The role of small business in rural India is explained below:

a. About 95% of the industrial unit existing in India consists of small sector Industries. The total of 40% of the industrial output accounts from these Industries. 45% of the total export from India is also contributed by these industries.

b. Deep Industries play an extremely important role to provide employment opportunities in the rural areas especially the artisans and the weaker sections of the society.

c. The small scale industries have a very low cost of production this is because the cost of running the establishment and the overhead expenses are extremely low.

d. It helps to reduce the Migration of the people residing in the rural areas to the urban areas in search of employment.

e. These Industries have certain qualities which are not usually observed in the large scale industries. Such as adaptability and maintaining good personal relations.

f. These industries are small in size. This helps the decision to be taken quickly and timely.

g. The rural areas are mainly considered to be agrarian. With the development of the small scale industries the rural households now have a diverse source of income as well as employment.

h. They help to solve problems such as the income inequalities, development of backward areas and developing a linkage between the rural areas and urban market.

i. It generates more number of employment opportunities per unit of capital invested.