Question

Which of the following is an internal cause of sickness of small businesses?

• A. lack of skilled and trained labour
• B. lack of managerial and marketing skills
• C. shortage of working capital
• D. delayed payment

Answer 1

Answer: (A), (B)

lack of skilled and trained labour
lack of managerial and marketing skills

All of the above is an internal cause of sickness of small businesses.Small Scale Industries (SSIs) play vital role in the economic development of a country. Some SSIs turn out to be sick due to various reasons. Some of the major causes for sickness in small scale industries are dealt in brief:

1. Inadequacy of working capital

2. Non-availability of credit

3. Poor and obsolete technology

4. Non availability of raw material

5. Marketing problems