Entrepreneurship Development and Communication Skills

7.4.2.1.Advantages of sub-contracting

Sub contracting enjoys the following advantages:

1. It increases the production.

2. In minimizes investment in plant and machinery.

3. It enables the use of technical and managerial abilities of sub-contractor.

4. It ensure the existence of sub-contractors by placing orders with them.

5. It makes the main concerns more flexible in production.