Most of the small units and industrial estates found in towns and cities are having one or more problems like lack of of power supply, water and drainage problem, poor roads, raw materials and marketing problem.
But these energy are not available in sufficient amount to these energy are not available in sufficient amount to these industries regularly. These small scale units are also exposed to marketing problems. This prevents Small Scale Industries from fully concentrating on their business activities.
Even after a long delay, the funds allocated are inadequate. Small scale industries are not in a position to play their role effectively due to various constraints. The reason is Firstly, skilled workers may be reluctant to work in these areas and secondly, the enterprise may not afford to pay the wages and other facilities demanded by these workers.
There are other problems of medium and large scale industries such as lack of transportation and communication facilities, unable to compete with foreign goods, lack of industrial security, and lack of sufficient Problems faced by small and medium scale it industries.
An important problem faced by micro and small enterprises in the country is that of finance. Another important problem faced by small-scale units is the absence of organised marketing system.
On an average, we can safely say that 50 to 40 per cent of capacity were not utilized in micro and small enterprises. But the multiplicity of labor laws, need to maintain several records PF, ESI, Muster Rolls etcfines and penalties for minor violations etc place Small Scale Industries at a great disadvantage.
Lack of technical knowledge: Medium and large scale industries are suffering from various problems, which are as follows: But, many of the entrepreneurs running Small Scale Industries are not aware of the various support services.
Since their production volume is small and cannot meet demand for large quantities their market is very restricted. This sector can stimulate economic activity and is entrusted with the responsibility of realising various objectives generation of more employment opportunities with less investment, reducing regional imbalances etc.
What are the problems faced by Small Scale Industries in India? It is, therefore, essential to develop an overall approach to remove these difficulties and put the small-scale industrial sector on a sound path of development.
The problem of finance in micro and small sector is mainly due to two reasons. Standardisation of certain products should be ensured, the quality of products should be guaranteed, and malpractices like adulteration, misrepresentation, etc. High levels of technology and skill man power are essential for establishment and operation of these industries.
But the domestic market for Nepalese industrial products is very limited due to the low purchasing power of the people. Lack of awareness The government has set up many organizations to support and provide assistance to Small Scale Industries. Indian economy is characterized by inadequate infrastructure which is a major problems for small units to grow.
There is under utilisation of installed capacity to the extent of 40 to 50 percent in case of small scale industries. These labour related problems result in lower productivity, deterioration of quality, increase in wastages, and rise in other overhead costs and finally adverse impact on the profitability of these small scale units.
Due to concentration, there is high competition among them to procure raw materials and other industrial inputs. Small Scale Industries do not enjoy much of the advantages enjoyed by large scale enterprises because of their nature and size.
The problems arise due to faulty and irregular supply of raw materials. Raw material shortages Raw materials are not available at the required quantity and quality.
Development of medium and large scale industries help to remove the problem of unemployment by providing the large number of employment opportunities to unskilled, semi-skilled and highly skilled human resources. Bank credit to the small scale sector as a percentage of total credit has been declining.
With the opening up of the economy and following the principles of liberalization and globalization, many items have been successively De-reserved. But in India not much thought and focus has gone into improving the export competitiveness of Small Scale Industries.
Proper utilization of resources: Financing Another problem that small-scale business operations face is that they may have more difficulty getting financing than larger businesses.
Even the people who are able to invest are not interested to invest in these sectors due to the lack of favourable industrial policy. But in India not much thought and focus has gone into improving the export competitiveness of Small Scale Industries.CHAPTER – V PROBLEMS FACED BY SMALL SCALE INDUSTRIES The development of small-scale industries is hampered by a diversity of problems.
There are certain problems common to all types of cottage and small scale industrial units. The solutions to common problems faced by small and medium enterprises include setting a clear vision for the company and building a strong management team, according to Hutex Management Consulting.
SMEs should also promote learning and sharing of knowledge among employees. Small and medium. What is a Small Scale Industry (SSI)? Small scale industries (SSIs) also known as MSMEs are defined & categorized by the Micro, Small & Medium Enterprises Development Act, The act categorizes different scale of industries on the basis of investment in plant & machinery in case of manufacturing industries and on the basis.
Problems Faced By Micro, Small and Medium Enterprises Sangitha G Patel, Dr. P.T. Chadudhari, Problems of Small Scale Industries in India. (April, ). This paper dealt with Problems of S.S.I in India such as Problem of skilled manpower, Inadequate credit assistance, Irregular supply of raw material, Absence of organized marketing, Lack.
Even the micro and small enterprises that depend on local resources for raw material requirements face the problem of other type. An example of this type is handloom industry that depends for its requirement of cotton on local traders. CHAPTER – V PROBLEMS FACED BY SMALL SCALE INDUSTRIES The development of small-scale industries is hampered by a diversity of problems.Download