Question

Give two suggestions to the problems of small scale industries.

Answer 1

A small scale industry is a business that is privately owned and operated with a small number of employees and relatively low volume of sales. 

Small scale industries play a very important role in the economical development of the country but these industries face a lot of challenges and problems. Some of them are:

Lack of Finance:
Many small scale industries face the problem of lack of funds. They are not able to access the domestic capital market to raise resources. They have to depend upon private money lenders who charge high interest. Banks and other financial institutions should play their role to ease the problems of small scale businesses. They should provide adequate amount of funds to these industries.

Shortage of Raw Materials:
The owner of small scale industry cannot get enough raw materials to meet their demands. They even sometimes get poor quality of raw material on higher prices which results in low production and loss of customers. Adequate supply of raw material should be provided to these industries by the market at reasonable price so that they don't face the problems of material shortage.

Answer 2

Small scale industries do not get as many advantages as their large scale counterparts although they have played a key role in contributing to the country’s economy. Two problems faced by small scale industries along with remedies are:

Lack of finance

They run short of funds for both short term and long term needs. At times, the funds provided by financial enterprises are not enough. This results in these industries having depend on private financiers who offer the sum for a hefty interest rate. As a remedial measure, an integrated credit system can be established through they can be given enough finance to meet both short and long term requirements. The interest rate for these funds should also be such that it can be borne by the industry.

Raw material allocation

Often small-scale industries are neglected and they are not allocated enough materials to meet the requirement. Alternatively, they are provided low quality raw materials for a high price. A solution to this would be giving such enterprises equal priority as their large-scale counterparts and provide them with good quality raw materials, machinery and other raw materials required.