Question

Which of the following is the problem faced by small-scale and cottage industries?

• A. Lack of finance
• B. Inadequate availability of raw materials
• C. Power supply
• D. All of the above

Answer 1

The correct option is D All of the above

Following are the problems faced by small-scale and cottage industries:-

1. Lack of Finance: - Finance is the most important element of any industry. They do not have a very good economic background, so they do not get much finance. So, they have to lend money from moneylenders who provide them money at very high interest rates.
   
2. Inadequate availability of raw materials: - Small scale and cottage industries suffer from the problem of non-availability of raw materials, important components and equipment. These inputs are allocated in a very residual amount in this sector.
   
3. Power Supply: - They do not have adequate power supply because mostly small scale and cottage industries are set up in villages and small towns. So, there is less power supply in these areas. They do not even have much finance for arranging alternate methods power supply.