Question

The problem faced by small Business is/are ____________.

• A. Lack of adequate finance
• B. Outdated technology
• C. Shortage of raw materials
• D. All of the Above.

Answer 1

The correct option is A Lack of adequate finance

Lack of adequate finance.

Finance is one of the most important problem confronting small scale industries Finance is the life blood of an organisation and no organisation can function proper у in the absence of adequate funds. The scarcity of capital and inadequate availability of credit facilities are the major causes of this problem.

Firstly, adequate funds are not available and secondly, entrepreneurs due to weak economic base, have lower credit worthiness. Neither they are having their own resources nov are others prepared to lend them. Entrepreneurs are forced to borrow money from money lenders at exorbitant rate of interest and this upsets all their calculations.