Question

Explain the preventive measure for sickness of small scale industries

Answer 1

In this connection, the following measures may be suggested:
(1) Equitable Allocation of Raw Materials, Imported Components and Equipment:

The small scale industrial units should be given adequate degree of priority in the allocation pattern of essential, but scarce, raw materials, imported components and equipment.

(2) Improvement in the Methods and Techniques of Production:

The small scale industrial units should be encouraged to replace their outmoded equipment with that incorporating an up-to-date technology, and facilities and incentives should be provided wherever required.
(3) Provision of Adequate Finance:

Promoter’s own capital in the small-scale industrial units is generally small and generation of internal resources small and slow. They depend, therefore, on the external sources of finance in a substantial measure.
(4) Marketing Assistance:


Marketing of their products at remunerative prices is the major problem of small-scale industrial units. There is, therefore, a clear case for government intervention with a view to reducing the disadvantages arising out of market imperfections.

Answer 2

There are several preventive measures that small-scale industries can take to prevent the sickness:

(1.) Conduct a risk assessment: Identify potential risks to the business and evaluate the likelihood and potential impact of those risks.

(2.) Develop a risk management plan: This plan should outline the steps the business will take to mitigate identified risks.

(3.) Implement effective internal controls: This can help prevent financial losses due to errors, fraud, or other mismanagement.

(4.) Implement a disaster recovery plan: This plan should outline the steps the business will take in the event of a disaster or other emergency to minimize losses and ensure the continued operation of the business.

(5.) Diversify the business: Consider expanding the range of products or services offered to reduce the risk of financial losses due to changes in market demand.

(6.) Obtain insurance: Insurance can protect the business against financial losses due to unforeseen events such as natural disasters, accidents, or lawsuits.

(7.) Maintain financial records: Accurate financial records can help the business identify financial problems early on and take corrective action to prevent further losses.

(8.) Monitor performance: Regularly monitoring the performance of the business can help identify potential problems early on and allow the business to take corrective action to prevent losses.

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