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Answer in brief. State any four challenges before Small Scale Industries. - Organisation of Commerce and Management

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Answer in Brief

Answer in brief.

State any four challenges before Small Scale Industries.

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Solution

Challenges before Small scale industries.

→ Inadequate finance
→ Problem of raw material
→ Labour problem
→ Marketing problem

  1. Inadequate Finance: SSI generally begins with a small amount of capital. Many of the units in the small sector raise funds from the capital market. These units frequently suffer from lack of adequate working capital.
  2. Problem of Raw Material: Another major problem of Small Scale Industries is an inadequate supply of raw materials. Due to that SSI have to compromise on the quantity and quality of raw material, or pay more price for good quality of raw material.
  3. Labour Problem: Small industries generally appoint unskilled and semi-skilled worker on daily wages. This creates the problem of low labour productivity, higher absenteeism and poor job commitment. The wages are low due to financial limitations. This leads to labour dissatisfaction and increases the problem of labour turnover. Improper shifts and lack of Job security makes employment in small industries unattractive and the talented workforce does not opt for such a job.
  4. Marketing Problem: Marketing is a weaker part of small industries. SSI have to depend excessively on middlemen who at times exploit them by paying low prices and delayed payments. Further, the direct marketing may not be feasible for small business firms as they lack the necessary infrastructure.
Concept: Challenges of Small Scale Industries
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APPEARS IN

Balbharati Organisation of Commerce and Management (OCM) 11th Standard HSC Maharashtra State Board
Chapter 3 Small Scale Industry and Business
Exercise Q.4 | Q 3 | Page 58
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