Problems of Small Scale Industries

The aisle of baby entrepreneurs is not rosy. Baby entrepreneurs face the afterward types of problems: (1) Botheration of raw materials: A aloft botheration that the baby entrepreneurs face is the accretion of raw materials. They accept to accost with abundant problems like; i. Availability of bare abundance ii. Poor affection of abstracts iii. Aerial amount of raw abstracts etc All these factors abnormally affect the able activity of baby units. (2) Botheration of finance: Accounts is one of the best important problems faced by baby entrepreneurs. As accounts is the activity claret of a business alignment and no business alignment can action appropriately in the absence of able funds. The botheration of accounts in baby breadth is mainly due to two affidavit i. e. (i) Scarcity of basal in the country as a whole. (ii) Weal credit-worthiness of baby units in the country. Due to their anemic bread-and-butter base, they acquisition it difficult to booty banking abetment from the bartering banks and banking institutions. Therefore, baby entrepreneurs accept to access acclaim from the money lenders on a actual aerial amount of interest. (3) Botheration of marketing: One of the aloft problems faced by baby entrepreneurs is in the acreage of marketing. They are not in a position to get aboriginal duke advice about the bazaar i. e. advice about completion, taste, affection afraid of consumers. Therefore, they are not able to advancement their articles according to the alteration business environment. These baby units acceding to the alteration business environment. These baby units generally do not action any business organization. As a consequence, their artefact affection compares afield with the affection of the articles of the ample calibration industries. Therefore, these industries ache from a allusive disadvantage as compared to ample calibration industries. (4) Botheration of beneath appliance of capacity: Best of the baby entrepreneurs are adversity from the botheration of beneath appliance of capacity. Baby calibration units are authoritative alone 40 to 50 percent use of their installed capacities due to assorted affidavit such as curtailment of finance, raw-materials, ability and under-developed markets for their products. (5) Outdated technology: Best of the baby entrepreneurs depend aloft old techniques and equipment. These units acquisition it actual difficult to improve their bulb and accouterment due to bound accommodation and capital. He affection of articles and abundance tend be low in the absence of avant-garde technology and that too at college cost. They are in no position to complete with their bigger able rivals operating avant-garde ample calibration units. For example, Khaki articles alike afterwards government subsidy assume to be costlier. (6) Poor activity planning: Poor activity planning is accession botheration faced by baby entrepreneurs. In the absence of apprenticeship and experience, these entrepreneurs do not attach abundant acceptation to activity studies. They do not bother to abstraction the appeal aspect, business problems, sources of raw materials. Inexperienced and amateur entrepreneurs generally abide unrealistic achievability letters and abridged abstracts which consistently aftereffect in delays in commutual promotional formalities. They cannot allow to account casework of activity consultants due to bound banking resources. (7) Bare infrastructure: Insufficient affection and abundance of transportation, advice and alternative basal casework decidedly in astern areas is accession problem. Bare basement after-effects in beneath appliance of accommodation and wastages. Bare infrastructures additionally abnormally affect the quality, abundance and assembly agenda of the enterprises operating in these areas. Therefore, their activity will become big-ticket and unviable. (8) Botheration of accomplished manpower: A baby administrator amid in astern breadth may not accept botheration of unskilled workers but it may be apparent to the botheration of non-availability of accomplished workers. Skilled workers may be afraid to assignment in their areas and baby calibration action may not allow to pay the accomplishment and alternative accessories accepted by these persons. Unavailability of accomplished manpower aftereffect in lower productivity, abasement of quality, access in wastages, acceleration in alternative aerial costs and assuredly adverse appulse on the advantage of these baby calibration units. (9) Authoritative problem: Accession austere botheration for baby calibration units is authoritative inadequacies. Avant-garde business demands vision, knowledge, skill, bent and accomplished hearted devotion. The authoritative adequacy of the administrator is actual important for the success of any venture. An administrator is appropriate to abide training and counseling for developing his alignment revolves. Therefore, he charge be absolutely abreast with all aspects of management. Lack of able charge and authoritative accomplishment will add to the problems of entrepreneurs. (10) Alternative problems: In accession to aloft discussed problems, the baby calibration industries accept been accountable by a cardinal of alternative problems such as accomplished technicians, abstruse obsolescence, alternate attributes of operation etc.

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