Discuss the problems faced by small scale industries.

Problems of small business: 

Small businesses are faced with the following problems: 

1. Small scale industries find it difficult to get adequate finance from banks and other financial institutions. 

2. They are not able to get quality raw materials at reasonable prices. 

3. Small business is generally operated by people who may not have all the managerial skills required to run the business. 

4. Small business firms cannot afford to pay higher salaries to the employees. So productivity per employee is relatively low and employee turnover is generally high.

5. Small business depends excessively on middlemen for marketing the products. Middlemen exploit them by paying low price and delayed payments. 

6. Small business organization uses outdated technology to produce products. So they cannot compete with global enterprises with low quality products. 

7. Due to lack of marketing skills or lack of demand, many small business firms have to operate below full capacity. 

8. Use of outdated technology results low productivity and uneconomical production. 

9. Small-scale units find it very difficult to compete with the product of multinational companies which are comparatively very cheap and of better quality 

10. Other important problems are poor project planning, inefficient management, transportation problems, lack of power, and lack of adequate warehousing, etc.