Question

What is small scale industry? Write the note on the problems of small scale industries.

Answer 1

Small scale industries are the industrial undertakings having fixed investment in plant and machinery, whether held on ownership basis or lease basis or hire purchase basis not exceeding Rs. 1 crore.

Small Scale Industries do not enjoy much of the advantages enjoyed by large scale enterprises because of their nature and size.

1. Poor capacity utilization
2. Lack of marketing support

Answer 2

Small scale industries are labour intensive yet require little capital. Small scale industries can be either manufacturing industries or service providers. Small scale industries comprise of small enterprises that manufacture goods or provide services with the help of smaller machines and a few workers and employees.

The enterprise must fall under the guidelines set by the Government of India.