The persistence of the small businesses in the Indian subcontinent as well as in Asia is a current phenomenon. It is due to the tradition. In Asia, most of the entrepreneurs are not prepared to manage big sized enterprises because they don’t have an adequate training. Furthermore, family businesses have many advantages : few investments, low salaries, flexibility in employment, absence of trade unions, absence of accounting ( conducive to the concealment of the benefits), state aid grants more easy to obtain. Indeed, the government has it both ways : it pushes the creation of big enterprises ( often under state control) and it encourages the small businesses despite of their low productivity because they employ many people.
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