Small investment
Investment means putting the money in some kind of business with a motive to earn profits. People from around the world invest millions to earn profits that can be used to fulfill all the expenses of the workers, management and their own too. Some people invest billions and trillions, while others invest some millions to earn profits. That is people invest as according to there capacities to invest.
Therefore investment can be both big investment and small investment. People investing big are very few in numbers. Such organizations requires more of a qualified staff and their demand for labor is much low due to latest machinery used for production process. Such organizations do not fulfill the aim of government's to achieve full employment in the country. Whereas small investments organizations keeps big labor force for production process, because they dont have enough resources to buy big machines. Also the number of small investor's are many times more than huge investor's. Thus by giving aid to such investments governments tries to achieve the goal of full employment in the country.
Therefore by initiating small investment governments of different country tries to give an opportunity to the millions of the entrepreneurs to change their own destiny by earning money. And along with them the destiny of other peoples who work with them. Thus the government accomplishes all an all an employment for the citizen's of the country by supporting and subsidizing small investments in the country.
Government aid in U.K. to small investments.
Government of U.K. set up small engineering firm's investment schemes or SEFIS in U.K. so as to provide aid and support to the small investment in the country. Actually the motive was to decrease bureaucratic interference coming in the way of development in small equipment manufacturers. And with the passage of time the scheme gave good results. The certain types of advance capital equipment got better investment from the small engineering firms in U.K. The schemes got launched in March 1982 with an allocation of thirty million pounds. And it was observed that the demand was so high that the applications were closed within eight and half months. The success of the scheme in 1982 resulted in the its continuance in 1983 with hundred million pounds project.
Later the performance of the scheme users was assessed and compared with the non-users and the result was confirmed that the SEFIS schemes users earned good profits and sales increased and competitiveness and better products came into the market. Moreover the job gain was observed among the scheme users. Almost 300+ jobs got initiated with this scheme. For this process of evaluation 134 face to face interviews and 126 telephonic interviews were take and the results shown very quite appreciated.
Government aid in INDIA to small investments.
A Unit Trust Of India or UTI was established by an act of the Parliament of the country to encourage savings of the small investor's and use this money in making heavy industries which were the need of the hour after the countrys independence in 1947. Actually the sale of units of UTI was made to the general public in lieu of their cash kept as saving. The sale of units under UTI scheme aggregated almost RS 14,000 crores during 1988-89. This money was used to invest in larger firms so as to aid their growth and development. After all the growth and development of such big firms will result in self-dependence of the country and making country ready for the open market competition. Small industrial development bank or SIDBI was made in the country and financed by UTI and government of India so as to aid and help the small scale industry in the country and meet its goal of full employment and prosperity in the country.
The UTI also launched its first Indian offshore fund as "The India Fund" which got listed in the London stock exchange in July 1986 and a second fund namely "The India Growth Fund Inc." which was listed in the New York stock exchange in 1988. Not only that UTI supports the development of the unit trusts in the developing countries like Sri Lanka, Bhutan, and Egypt by providing technical advice as well as participation in the equity capital of that country. Now it helps the movement of capital of NRI or Non Residing Indians in the country by selling its latest UTI units. The small-scale industries are given subsidies and technical help through these resources.
Thus the motive of self-sufficiency in the country is achieved just by gathering the small savings of the common people. And in return people are given interest and profits on their investments time to time. The value of the investor's increases many folds in just few years. Therefore making it an overall profitable deal for the Indians.
Government aid in the U.S to small investments.
The United States government developed the Small investment program or SIP, which is specifically designed for the aid and encouragement of the small and medium investor's in the country. It provides political risk insurance and risk coverages with a quick and efficient underwriting process, and a single application form and no application fee from the small and medium investors of the schemes.
The main objective of the SIP is promoting economic growth and development, financing investment projects, promote employment and sound labor standards in the country. The program is not restricted to U.S only but to all the nations of the developing countries. That is an aid in the development projects of such developing countries is also given.
SIP provides aid to those small scale industries whose labor force is not more than 300 labors or the investment is not more than 15 million dollars. SIP guarantees have a term of up to 10 years and that too can be extended with the discretion of the government. The maximum amount given through this program as aid is Five million dollars.
Since the evolution of SIP in1958, the aid for the growth and development of the industry has been given to almost 100000 small-scale industries. Thus from last fifty years SIP has been playing a pivotal role in the development of the small-scale industry in the country.
Reader's interest.
Reader's are adviced to invest in such policies and bonds issued by the government. Reason being that this schemes are meant to make the country more self reliance and self sufficient. So it becomes moral duty of single citizen to participate in such schemes. Moreover the returns from these schemes are much higher and the money invested always remain safe, due to government backing.
Conclusion.
In a nutshell, the different countries of the world like United States, India, United Kingdom and other countries of the world are making initiatives to promote the small-scale industry which can help bringing prosperity and full employment in the country. Also investing in such schemes is a profitable deal.
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