It is not only the private sector but even government departments are equally guilty. The Government of India has initiated various schemes aimed at improving the overall functioning of these units.
Due to this reason, some of these industries are closing down.
Inexperienced and incomplete documents which invariably results in delays in completing promotional formalities. A small scale unit located in a remote backward area may not have problem with respect to unskilled workers, but skilled workers are not available there.
Therefore, they suffer from competitive disadvantages vis-a-vis large-scale units. They do not bother to study the demand aspect, marketing problems, and sources of raw materials and even availability of proper infrastructure before starting their enterprises.
Sound and stable industrial policy is needed for the industrial development of the country. If a MNC keeps on building factories all over the country, then most of its liquid fund will be blocked in long-term assets and slow down its growth. All these factors adversely affect t e functioning of these units.
Nowadays there has been increased trend of big corporates taking care of their customers. This would be clear from this fact that of the units assisted by commercial banks up to Juneabout 69 per cent of the total credit was availed of by 11 per cent of the bigger units in the small-scale industries sector, which accounted for 55 per cent of the total production.
Provision of adequate facilities for industrial education and training, therefore cannot be over-emphasised. Most of the small units employ outdated and traditional technology and equipment. Even the micro and small enterprises that depend on local resources for raw material requirements face the problem of other type.
Let us say, there is a snacks manufacturing unit in a quite developed district and the unit procures all of its raw materials from the nearby dealers, as the promoters cannot afford to procure unprocessed raw crop directly from the, process the crop first and then use it.
An example of this type is handloom industry that depends for its requirement of cotton on local traders. Therefore, the market for these goods should be also large. Infrastructure aspects adversely affect the functioning of small scale units. The means of transportation are required to transport and distribute the industrial production to different places and the means of communication are required to have up to date market information.
The importance of medium and large scale industries can be explained as the following points. There is both time interests of these small scale enterprises.
Once the role of small-scale industries in the national economy is recognised, it becomes imperative that a secured berth is provided to it. Delayed payments severely impact the survival of many Small Scale Industries.
They are not in a position to get first hand information about the market i. Some of the major problems faced by micro and small enterprises are as follows: Some of the common problems among SMEs include lack of IT support and IT literacy, lack of formal procedure and discipline, lack of financial and human resources, and lack of experience in working with consultants.
Some big players have even setup an altogether different department just for the customer care. Therefore, the market for these goods should be also large. But most of the raw materials in Nepal are in remote areas and their availability is not at right time.
They depend, therefore, on the external sources of finance in a substantial measure. This places a great strain on government finances. Competition from large-scale units and imported articles:.
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. Problems of Medium and Large Scale Industries The medium and large scale industries play a significant role in the overall economic development of a nation.
The establishment of organized industries was started in Nepal in B.S. Problems Faced By Micro, Small and Medium Enterprises Sangitha G Patel, Dr. P.T. Chadudhari, Problems of Small Scale Industries in India.
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.
MSME`S IN INDIA: PROBLEMS, SOLUTIONS AND PROSPECTUS IN PRESENT SCENARIO 1Anis Ali, 2Firoz Husain 1Head, Department of Commerce, small and medium enterprises have been accepted as the engine of growth for Problems, Solutions and Prospectus in present scenario manufacturing concern.
The financially .Problems faced by small and medium scale it industries