Small scale sector in India faces a lot of problems in its day- to - day functioning. Explain four such problems.
Small scale sector in India faces a lot of problems in its day- to - day functioning. Explain four such problems.
Problems faced by small-scale sector are:
(a) Problem of Finance: The initial investment comes from own sources and loans borrowed from non-banking and non-government sources at a very high rate of interest. Banks and government sources are reluctant to advance loans to new SSIs.
(b)Problem of Licence: The procedure for obtaining a licence from the industries department of the state is very lengthy and expensive. The bureaucracy is also unhelpful. Most of the entrepreneurs, then drop the idea of running SSI due to this cumbersome process.
(c) Problem of Modern Technology: Absence of the latest technology is one more problem faced by SSI. The use of old and obsolete technology becomes a major barrier for them to face competition.
(d) Problem of Marketing : Items manufactured by SSIs are not generally standardised and suffer from poor design and quality. It makes their marketability difficult.
Problems faced by small-scale sector are:
(a) Problem of Finance: The initial investment comes from own sources and loans borrowed from non-banking and non-government sources at a very high rate of interest. Banks and government sources are reluctant to advance loans to new SSIs.
(b)Problem of Licence: The procedure for obtaining a licence from the industries department of the state is very lengthy and expensive. The bureaucracy is also unhelpful. Most of the entrepreneurs, then drop the idea of running SSI due to this cumbersome process.
(c) Problem of Modern Technology: Absence of the latest technology is one more problem faced by SSI. The use of old and obsolete technology becomes a major barrier for them to face competition.
(d) Problem of Marketing : Items manufactured by SSIs are not generally standardised and suffer from poor design and quality. It makes their marketability difficult.
