Describe the problem of shortage of capital faced by small business
Answers
Answered by
40
Shortage of capital may result in the low profit earnings... and the demand of their products. Undoubtably there will be loss in the buisiness
Answered by
19
Finance: Non-availability of sufficient stocks and business transactions is one of the significant problems. Due to the shortage of creditworthiness, many of these systems fail to procure funds from the city market. Banks too neglect to advance money to these units because many of these systems fail to present sufficient insurance protection or guarantees.
Raw materials: Purchasing high-grade quality raw material is stifled is a major dilemma faced by these industries. They have to either negotiate on the character or have to pay a huge price to get good quality stuff. Business power is comparatively low because of the small number of investments made by them.
Similar questions