Q1- Definition of small scale industry or business industry in Bangladesh?

Ans.: The term small-scale industry is used everywhere, both in developed and developing
countries, to denote the character of a particular size of industry. The nature of the economy or
its stage of economic development, the type of industry, period in question, nature of the
research object or the researcher's objective and many other considerations. This makes it
difficult to make an international comparison of small-scale industries. Of course, in recent
years there have been attempts to give a unified universal definition of small-scale industry.
But this can be possible only with reasonable similarity of stage of economic development.
Though the term "developing country" is commonly used, the individual economic conditions
of each are so different that a single definition cannot be applied. Only in the case of highly
developed countries of the world may a similar definition of small-scale industry be used. The
present discussion of the definition of small-scale industry is largely focused on Japan and India
and to a lesser extent on the U.K. and the U.S.A. in order to understand the changing trend of
definition with passage of time and changing character of their economies. This analysis in turn
will help to evolve a reasonable definition of small-scale industry for Bangladesh

Q2- Contribute of small industries in the economics development of Bangladesh?

Ans. - The small-scale and cottage industries have successfully survived the Industrial
Revolution, especially in the advanced West European countries. The small and medium-sized
industries in Japan as well as in other developed countries of the world have been contributing
considerably to their respective economies. Various branches of small and medium-sized
industries in 1967. The importance of small-scale and cottage industries in the case of
Bangladesh can easily be understood in the context of its rural based economy. This sector still
constitutes about 87 per cent of the total industrial labor force3, thus meriting priority in the
national development programmed. It would be of interest to discuss the present
and future contribution of these industries to the economy of Bangladesh.
Q3- The problem of small scale industries in Bangladesh?
Ans: Bangladesh is faced with a stagnant economic situation and this has become more
alarming since its independence. Mismanagement and inefficiency are wide spread. The small-
scale and cottage industries, in spite of their significant contribution to the economy through
the production of consumer goods and creation of employment, have failed to increase their
quality, productivity and profitability. The present situation warrants an evaluation and analysis
of the reasons for such poor growth and to suggest a course of action to overcome these
problems. It should be pointed out that the problems of small-scale and cottage industries in
Bangladesh are completely different from those faced by their counterparts in developed
countries. For example, Toda listed the causes of business failure in the case of Japan as
sluggish sales (44.9%), lax management accounting (22.1%), secondary effect of failure of
another firms (10.6%).' In the case of the U.S.A., the reasons for such failure were
incompetence of the company operators (44.4%) and lack of variety of experiences on the part
of the company operators (47.5%) and these two together accounted for 91.9%.2 Such
failures are also present in Bangladesh but the major problems are concerned with promotion
and development. Lack of proper infrastructural facilities like transport and communication,
water, power and gas connection, organized markets for raw materials, labor, finance and
distributional channels. Most entrepreneurs and managers lack modern dynamic management
skills. Thus, the problems of small-scale and cottage industries in Bangladesh are completely
different from the ones faced by such industries in developed countries.
Q4 – How do you give your various solutions of small industries in Bangladesh?
Ans: The economy depends mostly on an over-employed agricultural sector with low
productivity. Unemployment is rampant, and industries have yet to develop and social and
economic infrastructure is inefficient and inadequate. The country urgently requires the
implementation of a package of bold economic policies and programmers to overcome these
difficulties and to foster the growth of small-scale and cottage industries. As the assistance was
provided only after placing a national development programmed, the government of the then
East Pakistan hurriedly prepared a rudimentary Annual Plan. Thus, the planning in Bangladesh
is as old as foreign aid. Though the First Five Year Plan of Pakistan began to operate from July
1955, it was not approved formally until 1957. The plan failed in the key sector of agriculture,
but produced satisfactory performances in industries, specially large-scale and medium-sized
industries. In the Investment Schedule ofpive Year Plan, it was stated that. While the major
industrial undertakings in the country have been nationalized, the government would like to
reiterate its faith in the vital importance of the small-scale and cottage industries achieving
regional development by dispersal of industry throughout the country, in developing a
complementary relationship between large and small enterprises and in promoting a pool of
trained managers and workers.
Q1- Definition of small scale industry or business industry in Bangladesh?

Ans.: The term small-scale industry is used everywhere, both in developed and developing
countries, to denote the character of a particular size of industry. The nature of the economy or
its stage of economic development, the type of industry, period in question, nature of the
research object or the researcher's objective and many other considerations. This makes it
difficult to make an international comparison of small-scale industries. Of course, in recent
years there have been attempts to give a unified universal definition of small-scale industry.
But this can be possible only with reasonable similarity of stage of economic development.
Though the term "developing country" is commonly used, the individual economic conditions
of each are so different that a single definition cannot be applied. Only in the case of highly
developed countries of the world may a similar definition of small-scale industry be used. The
present discussion of the definition of small-scale industry is largely focused on Japan and India
and to a lesser extent on the U.K. and the U.S.A. in order to understand the changing trend of
definition with passage of time and changing character of their economies. This analysis in turn
will help to evolve a reasonable definition of small-scale industry for Bangladesh

Q2- Contribute of small industries in the economics development of Bangladesh?

Ans. - The small-scale and cottage industries have successfully survived the Industrial
Revolution, especially in the advanced West European countries. The small and medium-sized
industries in Japan as well as in other developed countries of the world have been contributing
considerably to their respective economies. Various branches of small and medium-sized
industries in 1967. The importance of small-scale and cottage industries in the case of
Bangladesh can easily be understood in the context of its rural based economy. This sector still
constitutes about 87 per cent of the total industrial labor force3, thus meriting priority in the
national development programmed. It would be of interest to discuss the present
and future contribution of these industries to the economy of Bangladesh.
Q3- The problem of small scale industries in Bangladesh?
Ans: Bangladesh is faced with a stagnant economic situation and this has become more
alarming since its independence. Mismanagement and inefficiency are wide spread. The small-
scale and cottage industries, in spite of their significant contribution to the economy through
the production of consumer goods and creation of employment, have failed to increase their
quality, productivity and profitability. The present situation warrants an evaluation and analysis
of the reasons for such poor growth and to suggest a course of action to overcome these
problems. It should be pointed out that the problems of small-scale and cottage industries in
Bangladesh are completely different from those faced by their counterparts in developed
countries. For example, Toda listed the causes of business failure in the case of Japan as
sluggish sales (44.9%), lax management accounting (22.1%), secondary effect of failure of
another firms (10.6%).' In the case of the U.S.A., the reasons for such failure were
incompetence of the company operators (44.4%) and lack of variety of experiences on the part
of the company operators (47.5%) and these two together accounted for 91.9%.2 Such
failures are also present in Bangladesh but the major problems are concerned with promotion
and development. Lack of proper infrastructural facilities like transport and communication,
water, power and gas connection, organized markets for raw materials, labor, finance and
distributional channels. Most entrepreneurs and managers lack modern dynamic management
skills. Thus, the problems of small-scale and cottage industries in Bangladesh are completely
different from the ones faced by such industries in developed countries.
Q4 – How do you give your various solutions of small industries in Bangladesh?
Ans: The economy depends mostly on an over-employed agricultural sector with low
productivity. Unemployment is rampant, and industries have yet to develop and social and
economic infrastructure is inefficient and inadequate. The country urgently requires the
implementation of a package of bold economic policies and programmers to overcome these
difficulties and to foster the growth of small-scale and cottage industries. As the assistance was
provided only after placing a national development programmed, the government of the then
East Pakistan hurriedly prepared a rudimentary Annual Plan. Thus, the planning in Bangladesh
is as old as foreign aid. Though the First Five Year Plan of Pakistan began to operate from July
1955, it was not approved formally until 1957. The plan failed in the key sector of agriculture,
but produced satisfactory performances in industries, specially large-scale and medium-sized
industries. In the Investment Schedule of the First Five Year Plan, it was stated that. While the
major industrial undertakings in the country have been nationalized, the government would
like to reiterate its faith in the vital importance of the small-scale and cottage industries
achieving regional development by dispersal of industry throughout the country, in developing
a complementary relationship between large and small enterprises and in promoting a pool of
trained managers and workers.
Q5- What do you mean by development of subcontracting industries?
Ans: The small-scale and cottage industries in Bangladesh could not succeed, being
overburdened with numerous problems. Of these, the two inter-related problems relating to
marketing and technology are the two dominant ones. Such a recovery and technological
improvement would be possible through the promotion of the subcontracting system.
The parent company can concentrate on the main manufacturing operation, leaving the other
jobs to be performed by the subcontractors. Like in most other developing countries,
Bangladesh has a dual (more correctly triple) structure of wage rates and workers in the small-
scale (and cottage) industries are paid only around 60 per cent of the wages in large-scale
industries. In most of the developed and in some of the developing countries, even the small
and medium-sized firms possess some special skills as well as patents on specialized
technologies. In most of the developed countries and particularly in Japan, subcontracting is
extensively practiced as a buffer against business fluctuations. Due to life-time employment,
the large Japanese companies limit the number of permanent employees to a critical minimum
and mostly rely on temporary workers and subcontractors for additional volume of work.
The above mentioned advantages of the parent company are not free of criticism and have
been the cause of a lot of social tension in Japan. As the subcontractors during the initial period
are weak in power, finance, technology and management skill, they are liable to be exploited
by the parent company through various means such as deferred payment, one sided decisions
low prices for the product high prices for the raw materials great pressure to reduce.
Q5- What do you mean by development of subcontracting industries?
Ans: The small-scale and cottage industries in Bangladesh could not succeed, being
overburdened with numerous problems. Of these, the two inter-related problems relating to
marketing and technology are the two dominant ones. Such a recovery and technological
improvement would be possible through the promotion of the subcontracting system.
The parent company can concentrate on the main manufacturing operation, leaving the other
jobs to be performed by the subcontractors. Like in most other developing countries,
Bangladesh has a dual (more correctly triple) structure of wage rates and workers in the small-
scale (and cottage) industries are paid only around 60 per cent of the wages in large-scale
industries. In most of the developed and in some of the developing countries, even the small
and medium-sized firms possess some special skills as well as patents on specialized
technologies. In most of the developed countries and particularly in Japan, subcontracting is
extensively practiced as a buffer against business fluctuations. Due to life-time employment,
the large Japanese companies limit the number of permanent employees to a critical minimum
and mostly rely on temporary workers and subcontractors for additional volume of work.
The above mentioned advantages of the parent company are not free of criticism and have
been the cause of a lot of social tension in Japan. As the subcontractors during the initial period
are weak in power, finance, technology and management skill, they are liable to be exploited
by the parent company through various means such as deferred payment, one sided decisions
low prices for the product high prices for the raw materials great pressure to reduce.
Q5- What do you mean by development of subcontracting industries?
Ans: The small-scale and cottage industries in Bangladesh could not succeed, being
overburdened with numerous problems. Of these, the two inter-related problems relating to
marketing and technology are the two dominant ones. Such a recovery and technological
improvement would be possible through the promotion of the subcontracting system.
The parent company can concentrate on the main manufacturing operation, leaving the other
jobs to be performed by the subcontractors. Like in most other developing countries,
Bangladesh has a dual (more correctly triple) structure of wage rates and workers in the small-
scale (and cottage) industries are paid only around 60 per cent of the wages in large-scale
industries. In most of the developed and in some of the developing countries, even the small
and medium-sized firms possess some special skills as well as patents on specialized
technologies. In most of the developed countries and particularly in Japan, subcontracting is
extensively practiced as a buffer against business fluctuations. Due to life-time employment,
the large Japanese companies limit the number of permanent employees to a critical minimum
and mostly rely on temporary workers and subcontractors for additional volume of work.
The above mentioned advantages of the parent company are not free of criticism and have
been the cause of a lot of social tension in Japan. As the subcontractors during the initial period
are weak in power, finance, technology and management skill, they are liable to be exploited
by the parent company through various means such as deferred payment, one sided decisions
low prices for the product high prices for the raw materials great pressure to reduce.
Q5- What do you mean by development of subcontracting industries?
Ans: The small-scale and cottage industries in Bangladesh could not succeed, being
overburdened with numerous problems. Of these, the two inter-related problems relating to
marketing and technology are the two dominant ones. Such a recovery and technological
improvement would be possible through the promotion of the subcontracting system.
The parent company can concentrate on the main manufacturing operation, leaving the other
jobs to be performed by the subcontractors. Like in most other developing countries,
Bangladesh has a dual (more correctly triple) structure of wage rates and workers in the small-
scale (and cottage) industries are paid only around 60 per cent of the wages in large-scale
industries. In most of the developed and in some of the developing countries, even the small
and medium-sized firms possess some special skills as well as patents on specialized
technologies. In most of the developed countries and particularly in Japan, subcontracting is
extensively practiced as a buffer against business fluctuations. Due to life-time employment,
the large Japanese companies limit the number of permanent employees to a critical minimum
and mostly rely on temporary workers and subcontractors for additional volume of work.
The above mentioned advantages of the parent company are not free of criticism and have
been the cause of a lot of social tension in Japan. As the subcontractors during the initial period
are weak in power, finance, technology and management skill, they are liable to be exploited
by the parent company through various means such as deferred payment, one sided decisions
low prices for the product high prices for the raw materials great pressure to reduce.