Question

justify small scale industries have problem

Answer 1

Problems of small scale industries

Explanation:

Small scale industries includes industries production and manufacturing are done on small scale and the maximum investment in plants and equipment do not exceed Rs. 1 Crore. The small scale industries face the following problems-

1. Lack of adequate fund
2. poor and inefficient management.
3. outdated technology
4. inadequate capacity utilization
5. shortage of working capital
6. restricted market because of ow quality and less production.
7. no marketing support due to shortage of fund etc.

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Answer 2

Problems of small scale industries

• Inadequate Finance

Small scale industries have the problem of shortage of finance and they find it difficult to borrow finance from bank and other financial institution.

• Shortage of raw materials

When the supply for raw materials will become less than the demand then there will be shortage of funds which results in low production.

• Lack of technology

The small scale industries cannot update their machinery according to their latest trend because of shortage of funds.

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