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What are the problems faced by small scale industries

Posted by Kanishka Goyal 6 years, 10 months ago

1 answers

Yogita Ingle 6 years, 10 months ago

Small business have been facing a large number of problems compared to large scale industries.
The scale of operations, shortage of funds, procurement of raw materials are some of them.
The detailed description of such problems are given below
(i) Finance The most serious problem faced by SSIs is that non availability of adequate finance to carry out their operations. Small scale sector lacks the credit worthiness and collateral required to raise capital from the capital markets or financial institutions and hence they depend on local money lenders who charge high interest rates. These units also suffer from lack of adequate working capital, either due to delayed payment of dues to them or locking up of their capital in unsold stocks.
(ii) Raw Materials Another major problem of small business is the procurement of raw materials. If the required materials are not available, they have to compromise on the quality or have to pay a high price to get good quality materials. They purchase raw materials in small quantities due to lack of storage capacity and hence their bargaining power is low.
(iii) Managerial Skills Small business is generally promoted and operated by a single person, who may not possess all the managerial skills required to run the business. Many of the small business entrepreneurs possess sound technical knowledge, but are less successful in marketing and may not find enough time to take care of all functional activities. At the same time they are not in a position to afford professional managers.
(iv) Less Productive Labour Small business firms cannot afford to pay high salaries to their employees, which affects employee willingness to work. Thus, productivity per employee is relatively low and employee turnover is generally high. Small business organisations are unable to attract talented people because of lower remuneration. Division of labour cannot be practised in small scale units, which results in lack of specialisation and concentration.
(v) Marketing Effective marketing is a weaker area of small organisations. These organisations depend excessively on middlemen, who at times exploit them by paying low price and delaying payments. Direct marketing is also not feasible for small business firms as they lack the necessary infrastructure.
(vi) Quality Small business organisations generally concentrate on cutting the cost and keeping the prices low. In doing this, they are unable to maintain the desired standards of quality as they do not have adequate resources to invest in quality research and expertise to upgrade technology.
(vii) Capacity Utilisation Small business firms have to operate below full capacity due to lack of demand. Due to this, their operating costs tend to increase which gradually leads to sickness and closure of the business.
(viii) Technology Use of outdated technology is a serious shortcoming of small industries which results in low productivity and uneconomical production.
(ix) Sickness Small industries become sick due to both internal and external causes. Internal problems include lack of skilled and trained labour and managerial and marketing skills. Some of the external problems include delayed payment, shortage of working capital, inadequate loans and lack of demand for their products.
(x) Global Competition Small businesses are threatened with global competition from multinational corporations and cheap imports. It is difficult for them to compete with the quality standards, technological skills and marketing capabilities of the large multinationals.

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ANSWER

WHAT IS FLOATATION COST ❓❔❓??

Posted by Sakshi Sharma??️??️ 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Harsh Panchal 6 years, 10 months ago

It is the total cost incurred by a company inoffering its securities to the public.??

2Thank You

ANSWER

A company has decided to donate 1% of its sales to on NGOs serving mentally disabled people. this investigative of the company was highly appreciated by the public and their sales increated by 10%. Identify the objective depicted in the given example. Write any other aspect of the objective discussed in para. Write the value followed by the company by its act.

Posted by Shraddha Chavan 4 years, 6 months ago

CBSE > Class 11 > Business Studies

1 answers

Harsh Panchal 6 years, 10 months ago

Social objective of the business is depicted in the given para.??

11Thank You

ANSWER

What is getting information about bank balance on mobile and some latest transaction called?

Posted by Diya Patel 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Harsh Panchal 6 years, 10 months ago

Tele banking.??

1Thank You

ANSWER

What is the changing role of public sector? Explain

Posted by Navneet Kaur 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Harsh Panchal 6 years, 10 months ago

The role and importance of public sector in the society has been changing with time.it's role in the development of the country over a period of time can be summarised as followings: 1Develoent of infracture. 2regional balance. 3economies of scale. 4import substitution. 5restruction economics concerntration ??

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Giving priority to services instead of the economic self interest is characteristics of which economic activity

Posted by Diya Patel 6 years, 10 months ago

CBSE > Class 11 > Business Studies

0 answers

ANSWER

What is share ? Types of share.

Posted by Rahul Rohit 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Sakshi Sharma??️??️ 6 years, 10 months ago

A share is an indivisible unit of capital, expressing the ownership relationship between the company and the shareholder. (1) Equity shares (2) Preference shares

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ANSWER

Types of digital payments

Posted by Kashish Singla 6 years, 10 months ago

CBSE > Class 11 > Business Studies

2 answers

Baby Mishra 6 years, 10 months ago

Banking card , mobile banking , internet banking , e - wallet , upi , ussd

1Thank You

Harsh Panchal 6 years, 10 months ago

-Banking cards -mobile wallets -bank prepaid cards -internet banking.

2Thank You

ANSWER

What is the features of partnership

Posted by Arbaz Pathan 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Rajat Vashistha 6 years, 10 months ago

General features: (1.) Utmost good faith (2.) Unlimited liability (3.) Legal activity Statutory features: (1.) Principal-agent relationship (2.) More than one person (3.) Profit motive

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A factory owner gets his stock of goods insured but he hides the fact that the electricity board has issued him a statutory warning letter to get his factory wiring changed later on the factory catches fire due to short circuit can he claim compensation

Posted by Akshay Goel 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Rajat Vashistha 6 years, 10 months ago

No because he had ignored the principle of utmost good faith & co. has the right to held the contract void.

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ANSWER

What is meant by partner by estopple? Explain

Posted by Sabiha Shaikh 6 years, 10 months ago

CBSE > Class 11 > Business Studies

1 answers

Harsh Panchal 6 years, 10 months ago

Partner by estoppel is a person be considered as a partner by estoppel if , through his or her own initiatives , conduct or behaviour , he or she gives an impression to others that he/she is a partner of the firm. Such partners are held liable for the debts of the firm.?????

4Thank You

ANSWER

What is 1.) CII 2.) AEPC 3.) RCMC??

Posted by Rajat Vashistha 6 years, 10 months ago

CBSE > Class 11 > Business Studies

4 answers

Mittali Khandelwal ????? 6 years, 10 months ago

CII FROM BOOK AND AEPC AND RCMC FROM SCHOOL NOTES KK?

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