Problems & Prospects Of Small Scale Industry

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Shaloo Talwar & Rubal Rana

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Introduction
Recognizing the important role that small scale industrial sector play in the national economy, both the central and state government have taken active steps to develop, promote and foster their growth. Some of these initiatives have been effective: but most of the problems of SSI still continue to afflict the sector. They can
4/28/12 play their rightful role only if they are on sound lines.

INTERNAL AND EXTERNAL PROBLEMS

Internal problems are those which are not influenced

by external forces; mainly crop up from within the industry and can be controlled internally.

External problems on the other hand, are those which

are the outcome of external factors and are beyond the control of a particular unit. infrastructural facilities etc. are examples of external problems while organizational structure, production, distribution, management, training etc. are internal problems.
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The availability of power, communication and other

Internal Problems
Most of the small scale industries belong to individual

proprietorship form of organization. The owners come with personal egos and ideas, proprietarily attitudes and ineffective delegation. depends on the attitude, audacity and spirit of the owners which in turn influenced by personal and family requirements. planning and the dealings are informal. The emphasis is on short term gain even at the cost of quality.

To a large extent the development of the units

There is a lack of expertise, professionalism and

4/28/12 There is no logical reasoning, proper career plan and

External Problems
Financial support and investment promotion. Consultancy and counseling services. Quality control, market promotion, testing, scientific

research and development facilities. formation.

Entrepreneurship development, training and skill Technology development and applications. Infrastructure development. Establishment of linkages between various industries

and other sectors of the economy.

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