What Are The Objectives of Ancillary Development?

Objectives of Ancillary Development:

1. Employment Opportunities –

                 Development of employment opportunities must be coupled (along) with the growth of entrepreneurship in different fields & different parts of the country.

2. Equitable Distribution –

               Dispersal of industrial activities in various regions are bringing out the desired equitable distribution of economic power.

3. Economies of Scale –

                    There should be development of single or a multiple discipline expertise in different field in order to bring about economic of scale.

4. Increasing Productivity –

                     There should be an increase in the productivity of the small scale units.  

5. Effective Solution –

                     Its aim is to provide an effective solution to the marketing problems of small enterprises in the initial period or before they reach the break even point.

6. Provide Choice –

                    A firm producing final products has a choice either to manufacture components & use specialized equipment from other units.

7. Other –

The rise in the cost of capital has also been another reason for the growth of ancilliaries.

If the demand for component is small, the scale of economies & saving would not be realized. In such a case, it would be advantageous to buy such inputs from specialized sub contractor firms.