English

Attempt the following. Explain in brief the impact of capital on Small Scale industries. - Organisation of Commerce and Management

Advertisements
Advertisements

Question

Attempt the following.

Explain in brief the impact of capital on Small Scale industries.

Answer in Brief
Advertisements

Solution

The major problem faced by small scale industries is insufficient capital, which creates the following difficulties with them.

  1. 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.
  2. 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.
  3. 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.
  4. Outdated technology: Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.
  5. 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.
shaalaa.com
  Is there an error in this question or solution?
Chapter 3: Small Scale Industry and Business - EXERCISE [Page 58]

APPEARS IN

Balbharati Organisation of Commerce and Management (OCM) [English] Standard 11 Maharashtra State Board
Chapter 3 Small Scale Industry and Business
EXERCISE | Q 6 3) | Page 58

RELATED QUESTIONS

Select the correct option and rewrite the sentence.

India is __________ abundant country.


Select the correct option and rewrite the sentence.

_______ cost of power acquisition, frequent power cuts, irregular supply of power affect the productivity of SSI.


Select the correct option and rewrite the sentence.

Small Scale Business are _____ intensive.


Select the correct option and rewrite the sentence.

Occurring obscured idea in mind of entrepreneur is _______ stage of establishing business.


State True or False:

Majority Small Scale industry uses advanced technology.


State True or False:

Small Business can not survive in the competition.


Select the correct option.

A B
More than ₹ 25 lakhs but Does not exceed ₹ 5 cores ______________

Answer in one sentence.

Give examples of Modern Small Scale Industry.


Correct the underined word and rewrite the following sentence.

The problem of employment has been becoming more serious in India.


Correct the underined word and rewrite the following sentence.

SSI begins with large amount of capital.


Explain the following term/concept.

Small Scale Industry.


Explain the following term/concept.

Service Sector


Study the following case/situation and express your opinion.

Mr. Rahim is keenly interested in starting the Small Scale business. But he is worried about the challenges before Small Scale business. Guide him about the solutions to face these challenges.


Attempt the following.

Explain the meaning of Small Scale industries.


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.

An industry using power with less than 50 employees.


for the following sentence Give one word/phrase/term.

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 of the following is a key benefit of SSIs for the Indian economy?


Share
Notifications

Englishहिंदीमराठी


      Forgot password?
Use app×