Small scale industries or small scale enterprise assume an essential part in the financial advancement of our country. This area can animate monetary movement and has the endowment with the duty of acknowledging different goals; age of greater work openings with less speculation, diminishing local awkward nature. And so on small scale industries are not in a situation to assume their part successfully because of different limitations. The different requirements, the different issues looked by small scale industries are as under:
Finance, Raw material, Idle capacity, Technology, Marketing, Infrastructure, Underutilization capacity, project planning, skilled manpower and managerial.
Let’s see about these issues in detail now.
Finance is perhaps the main issue standing up to small scale enterprises. Finance is the existence blood of an association and no association can work appropriate у without satisfactory assets. The shortage of capital and deficient accessibility of credit offices are the significant reasons for this issue.
Firstly, adequate funds aren’t available and secondly, entrepreneurs thanks to weak economic base, have lower credit worthiness. Neither they’re having their own resources that have prepared to lend them. Entrepreneurs have forced to borrow money from money lenders at exorbitant rate of interest and this upsets all their calculations.
After nationalization, banks have started financing this sector. These enterprises are still battling the matter of inadequate availability of high cost funds. These enterprises are promoting various social objectives; and so as to facilitate then working adequate credit on easier terms and conditions must have the provision to them.
2) Raw materials
Small scale industries ordinarily tap nearby sources for meeting crude material necessities. These units need to deal with various issues like accessibility of deficient amount, low quality and even stockpile of crude material isn’t on normal premise. Every one of these variables unfavorably influence the working of these units.
Enormous scale units, in light of more assets, ordinarily corner whatever crude material that is accessible in the open market. Small scale units have compulsion accordingly to buy similar crude material from the open market at excessive costs. It will prompt expansion in the expense of creation consequently making their working unviable.
Small scale enterprises have not completely presented to the most recent innovation. Also, they need imperative assets to refresh or modernize their plant and apparatus Due to outdated strategies for creation, they are defied with the issues of less creation in second rate quality and that too at greater expense. They are in no situation to contend with their better prepared opponents working modem large scale units.
4) Idle capacity
There is under usage of introduced ability to the degree of 40 to 50 percent in the event of small scale industries. Different reasons for this under-use are lack of raw material issue related with reserves and even accessibility of force. Small scale units have no complete preparation to conquer every one of these issues just like the case with the opponents in the large scale sector.
These small scale units have additionally presented to advertising issues. They are not in a situation to get direct data about the market for example about the rivalry, taste, preferring, despising of the customers and pervasive design.
With the outcome they are not in a situation to redesign their items remembering market necessities. They are delivering less of second rate quality and that too at greater expenses. Accordingly, in rivalry with better prepared huge scope units they are put in a generally disadvantageous position.
To shield the interests of small scale ventures the Government of India has saved certain things for selective creation in the small scale area. Different government organizations like Trade Fair Authority of India, State Trading Corporation and the National Small Industries Corporation are stretching out assistance to small scale area in selling its items both in the homegrown and fare markets.
6) Underutilization capacity
The majority of the small scale units are working beneath true abilities or there is gross underutilization of limits. Enormous scope units are laboring for 24 hours per day for example in three movements of 8 hours each and are consequently utilizing their hardware and types of gear.
Then again small scale units are making simply 40 to 50 percent utilization of their introduced limits. Different reasons ascribed to this gross under-usage of limits are issues of account, crude material, power and immature business sectors for their items.
Infrastructure viewpoints unfavorably influence the working of small scale units. There is deficient accessibility of transportation, correspondence, power and different offices in the retrogressive regions. Business people are confronted with the issue of getting power associations and in any event, when they are adequately fortunate to get these they are presented to unscheduled long force cuts.
Insufficient and unseemly transportation and correspondence organization will make the working of different units even more troublesome. Every one of these variables will antagonistically influence the amount, quality and creation timetable of the undertakings working here. Along these lines their activities will get uneconomical and unviable.
8) Project planning
Another significant issue looked by small scale business people is helpless undertaking arranging. These business visionaries don’t connect a lot of importance to suitability considers for example both specialized and conservative and dive into enterprising action out of simple energy and fervor.
They try not to contemplate the interest perspective, showcasing issues, and wellsprings of crude materials and even accessibility of legitimate foundation prior to beginning their endeavors. Undertaking possibility examination covering every one of these viewpoints notwithstanding specialized and monetary reasonability of the ventures, isn’t at all given due weight-age.
Unpracticed and deficient records which perpetually brings about delays in finishing special customs. Little business visionaries regularly submit unreasonable possibility reports and inept business people don’t completely comprehend project subtleties.
Besides, because of restricted monetary assets they can’t stand to benefit administrations of venture advisors. This outcome is helpless task arranging and execution. There is both time interests of these small scale undertakings.
9) Skilled manpower
A small scale unit situated in a far off in reverse region might not have issue regarding untalented laborers, however gifted specialists are not accessible there. The explanation is Firstly, gifted specialists might be hesitant to work there and besides, the undertaking may not stand to pay the wages and different offices requested by these laborers.
Other than non-accessibility business visionaries are stood up to with different issues like truancy, high work turnover indiscipline, strike and so forth These work related issues bring about lower efficiency, crumbling of value, expansion in wastages, and ascend in other overhead expenses lastly unfavorable effect on the productivity of these small scale units.
Managerial inadequacies represent another major issue for limited scope units. Current business requests vision, information, ability, inclination and entire hearted dedication. Ability of the business person is imperative for the achievement of any endeavor. A business person is a rotate around whom the whole undertaking spins.
Numerous small scale units have turned wiped out because of absence of administrative ability with respect to business visionaries. A business visionary who is necessary to go through preparing and directing for fostering his administrative abilities will add to the issues of business people.