Answer in Brief
Justify the following statement.
Small Scale Industries have problems.
Small scale industries have to face many problems:
- Lack of Adequate Finance: Due to the small scale of production and sale, Banks and Financial Institutions are afraid to give loans.
- The problem of Raw material: Due to inadequate finance they cannot purchase raw material at a time Thus, the cost of raw material increases.
- Labour Problem: Due to inadequate finance, they cannot employ skilled labour which affects production.
- Marketing Problem: The goods manufactured if not marketed properly can be risky as it will affect the sales.
- The problem of Transport: Transportation cost increases the cost of the product which hampers the sale as large scale industries cost may be less.
- Sickness: Due to financial problem industrial units are unable to sustain themselves and finally turn to sick units.
- Thus, Small Scale Industries have problems.
Concept: Challenges of Small Scale Industries
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