Q. 4. explain the problems and remedial measures of small scale industry
Answers
Following are the problems and their solutions for small scale industry.
(1) Finance: Take out loans
(2) Raw Material: Get a proper warehousing system or packages to get discounts like economy of scale.
(3) Idle Capacity: if you have empty spaces, rent them out.
(4) Technology: Look for cheap labor, or take machinery on lease agreements
(5) Marketing: hire an outsourcing firm to help, or gather fresh interns
(7) Under Utilization of Capacity: come up with a proper business plan and have supervisors. Understand best way of production possibility curve. Look at best quality and fruitful working hours, then adjust accordingly.
Adequate financing is the most common issue faced by the small scale industries.
Due to this, they are incapable of stiff marketing thereby leading to less profitability.
The government should make certain provisions related to financing and should generally focus on the marketing prospects so that they can boost their sale.