Question

Long answer type questions.

“Small business in India can face global competition” Do you agree, with statement? Explain with reason

Answer 1

No, it is difficult for small businesses in India to withstand global competition because of the following reasons:

1. Stiff competition: The small-scale industries face stiff competition from multinational corporations (MNCs), which are huge in terms of size and operations. This adds to cut-throat competition for the SSIs as they have lesser funds to operate with.
2. Quality problems: MNCs possess high quality standards, technological and managerial skills and creditworthiness which helps them in producing quality goods. Small scale industries, on the other hand, find it difficult to withstand the challenges posed by MNCs because of low level of technology and funds.
3. Stringent requirements of quality: Due to stringent quality certifications like ISO 9000, SSIs (small-scale industries) have limited access to the markets in developed countries. This is because the SSIs are unable to meet the high quality standards demanded by the developed nations. Thus, posing a problem for the small-scale industries.