Briefly discuss the problems faced by small scale industries.
Briefly discuss the problems faced by small scale industries.
Small scale industires face the following major probems:
(a) Scarcity of finance and credit is the main reason behind the small scale of operations and weak financial health.
(b) They face the problem of getting adequate raw material power shortages, which increases their cost of operations.
(c) Because of limited financial resources, the technology of production they use is backward which further increases their cost of production.
(d) Competition with large-scale domestic industries as well as multinational problems has dislodged many of SSI's.
(e) There is a lack of demand for the goods produced by SSI's.
(f) These industries are operated and managed by a single person who may not possess all the skills required for running a business.
Small scale industires face the following major probems:
(a) Scarcity of finance and credit is the main reason behind the small scale of operations and weak financial health.
(b) They face the problem of getting adequate raw material power shortages, which increases their cost of operations.
(c) Because of limited financial resources, the technology of production they use is backward which further increases their cost of production.
(d) Competition with large-scale domestic industries as well as multinational problems has dislodged many of SSI's.
(e) There is a lack of demand for the goods produced by SSI's.
(f) These industries are operated and managed by a single person who may not possess all the skills required for running a business.
