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Sayantika ChatterjeeTop Contributor
I am a literature student from University of Calcutta and came here to contribute.
Asked a question 4 years ago

What are the major problems of small scale businesses ?

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Puru BhatnagarTop Contributor
Business Analyst, Entrepreneur, Business developer, Marketer

Small scale business is in large number, and they contribute in large portion to our nation economy.

Government earlier has come up with plans and had also reservedsome products that were only produced by these small scale industries, introduction of banks that provide loans, exemptions or making flexible laws for small scale industries were some initiative by government that not only help these small scale industries to grow but also help them to establish in the competitive times.

Still there are problems which are faced by small scale industries, and to some extent some SSI are even sick.

Major problem faced by them are as follows:

1).Poor capacity utilisation: Generally machinery used in Small scale industries are not always use to fullest, nearly 50% remain idle and this add up to the cost of its maintenance.

2). Incompetent Management: Many small scale industry are run by incompetent management they are poor qualified without much skills and experience.

3). Inadequate Finance: Small scale industries generally faces the problem of finance, scarcity of funds and thus not able to raise resources.

4). Raw material shortage: As the name suggest the material required to manufacture products are not much in supply and as a result there is shortage of raw material.

5). Lack of marketing support: Small scale industries faces this problem because of which they are not able to compete in the market with their competitors and with the globalisation and liberisation they are not being able to cope up with the competitors.