Write any three problems of small business in India
Write any three problems of small business in India
1. Finance:
- Many of the units in the small sector lack the creditworthiness required to raise as capital from the capital markets.
- They are exploited by the money lenders.
- These units frequently suffer from lack of adequate working capital, either due to delayed payment of dues to them or locking up of their capital in unsold stocks.
2. Raw Materials:
- If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials.
- They cannot afford to take the risk of buying in bulk as they have no facilities to store the materials.
3. Managerial Skills:
- Promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
- They may not find enough time to take care of all functional activities. At the same time they are not in a position to afford professional managers.
1. Finance:
- Many of the units in the small sector lack the creditworthiness required to raise as capital from the capital markets.
- They are exploited by the money lenders.
- These units frequently suffer from lack of adequate working capital, either due to delayed payment of dues to them or locking up of their capital in unsold stocks.
2. Raw Materials:
- If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials.
- They cannot afford to take the risk of buying in bulk as they have no facilities to store the materials.
3. Managerial Skills:
- Promoted and operated by a single person, who may not possess all the managerial skills required to run the business.
- They may not find enough time to take care of all functional activities. At the same time they are not in a position to afford professional managers.
