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Justify the following statement. Generally Small Scale Industries are sick. - Organisation of Commerce and Management

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Short Note

Justify the following statement.

Generally, Small Scale Industries are sick.

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Solution

  1. There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems.
  2. Internal Problems are like unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernisation, etc.
  3. External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc.
  4. According to RBI a sick unit is that which has incurred a cash loss for one year, is likely to continue it for the current year as well as following year.
  5. Thus, mainly due to financial problem, industrial units are unable to sustain themselves and are called as sick units.
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.5 | Q 1 | Page 58
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