Advertisements
Advertisements
Question
Attempt the following.
Explain in brief the impact of capital on Small Scale industries.
Advertisements
Solution
The major problem faced by small scale industries is insufficient capital, which creates the following difficulties with them.
- Borrowings of Capital from Landlords and Money Lenders: Nationalised and Co-operative banks are not ready to finance Small Scale Industries without security. Thus, they are forced to borrow from money lenders, where they have to pay a very high rate of interest.
- Storage of Raw material: Small Scale Industries are agro-based. The raw material is available seasonally. To stock goods, they required huge finance. Due to lack of finance, they run industry only in seasons.
- Lack of Skilled Labour: Only unskilled and semi-skilled labourer are available. Small Scale Industries cannot afford labour cost of skilled labourer which affect the quality and quantity of production and profitability.
- Outdated technology: Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.
- Weaker Marketing Skill: In today's world marketing plays an important role. The rural area is facing marketing problem due to lack of facilities and knowledge and they are exploited by middlemen too.
APPEARS IN
RELATED QUESTIONS
Select the correct option and rewrite the sentence.
Small scale industries contribute nearly _______ to the industrial exports of the country.
State True or False:
Small Business can not survive in the competition.
Complete the sentence.
SSI enjoys the advantage of ___________ cost of the produce.
Complete the sentence.
SSI requires __________ capital as compared to large scale industries.
Select the correct option.
| A | B |
| More than ₹ 25 lakhs but Does not exceed ₹ 5 cores | ______________ |
Select the correct option.
| A | B |
| _____________ | Does not exceed ₹ 25 lakhs |
Select the correct option.
| A | B |
| More than ₹ 5 crores but does not exceed ₹ 10 crores | ____________ |
Answer in one sentence.
Give examples of Modern Small Scale Industry.
Explain the following term/concept.
Traditional Industrial Sector
Explain the following term/concept.
Modern Industrial Sector
Study the following case/situation and express your opinion.
Mr. Ram wants to start a Small Scale business of manufacturing parts of bicycles or machinery.
- Identify the first step or stage of setting up his Small Scale business.
- State the different ways of raising the capital for his business.
- 'Marketing is a necessary step of running a business,’ comment on it.
Give one word/phrase/term. For the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
Which feature is NOT typically associated with Small Scale Industries?
According to the MSMED Act, a micro enterprise in the manufacturing sector must invest______.
