Expain in detail the problems faced by the small business?
Expain in detail the problems faced by the small business?
Finance:
- Many of the units in the small sector lack the credit worthiness required to raise as capital from the capital markets.
- They are exploited by the money lenders.
- These units frequently suffer from lack of adequate working capital, either due to delayed payment of dues to them or locking up of their capital in unsold stocks.
Raw Material:
- If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials.
- They cannot afford to take the risk of buying in bulk as they have no facilities to store the materials.
Managerial Skills:
- Promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
- They may not find enough time to take care of all functional activities. At the same time they are not in a position to afford professional managers .
Labour:
- They cannot afford to pay higher salaries to the employees, which affects employee willingness to work hard and produce more.
- Unskilled workers join for low remuneration but training them is a time consuming process.
Finance:
- Many of the units in the small sector lack the credit worthiness required to raise as capital from the capital markets.
- They are exploited by the money lenders.
- These units frequently suffer from lack of adequate working capital, either due to delayed payment of dues to them or locking up of their capital in unsold stocks.
Raw Material:
- If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials.
- They cannot afford to take the risk of buying in bulk as they have no facilities to store the materials.
Managerial Skills:
- Promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
- They may not find enough time to take care of all functional activities. At the same time they are not in a position to afford professional managers .
Labour:
- They cannot afford to pay higher salaries to the employees, which affects employee willingness to work hard and produce more.
- Unskilled workers join for low remuneration but training them is a time consuming process.
