State with valid reason whether the following statement is true or false : 'Self employed workers are different from hired workers.' Explain the importance of credit availability to farmers in rural development.

Question

Accepted Answer

True. Self-employed workers are different from hired workers.

Differences:
1. Self-employed: Own and operate their own enterprises
   - Use their own land, labor, capital
   - Earn profit from business
   - Bear risk of business
   - Example: Shopkeepers, traders, farmers

2. Hired workers: Sell their labor to employers
   - Receive wages for work done
   - Do not own the enterprise
   - Have limited risk
   - Example: Factory workers, office staff

Importance of credit availability to farmers:
1. Enables purchase of inputs (seeds, fertilizers)
2. Supports investment in irrigation and equipment
3. Helps in meeting production costs
4. Prevents distress sales of produce
5. Promotes agricultural development

Credit availability is crucial for rural development and poverty alleviation.