Generally Small Scale Industries are sick.

1. There are many problems faced by Small Scale Industries. These problems may be internal problems or external problems. 

2. Internal Problems are like unskilled labour or untrained labour, lack of managerial skills and marketing skills, lack of modernisation, etc. 

3. External problems like shortage of working capital, inadequate loans, delayed payments, shortage of raw material, etc. 

4. According to RBI a sick unit is that which has incurred a cash loss for one year, is likely to continue it for current year as well as following year. 

5. Thus, mainly due to financial problem, industrial units are unable to sustain themselves and are called as sick units.