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Causes of sickness in small scale industries day 3

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Causes of sickness in small scale industries day 3

  1. 1. Small-Scale Industries Mansi Patowary
  2. 2. Introduction
  3. 3. Types of SSI • Tiny Industries: Those small scale industries which have been situated in rural or urban areas having 50 thousand or less population. • Ancillary Industries: An industrial units which is engaged and proposed to be engaged in the manufacture parts, components, sub-assemblies or toolings. • Cottage industries: those small size industries which use local resources and human force
  4. 4. Characteristics of SSI Irrespective of their location, nature and political environment, the small business have certain specific features that are as follows: Formation Location Capital Management Means of livelihood
  5. 5. Contd. • Technique of production used • Market share • Special feature • Re-investment of profit
  6. 6. Role and importance of SSI • Little capital • Opportunities for employment • Creation of utility • Less risk • Ancillary to large-scale industries • Providing satisfaction to consumer • Low production cost
  7. 7. • Creation of new market • Flexibility • Better relation between employer and employee
  8. 8. Problems of SSI • Problem of adequate finance • Problem of availability of raw materials • Want of plant and equipment • Problem of power • Problem of marketing • Problem of export • Inadequacy of government help • Problem of taxation
  9. 9. Symptoms of Industrial sickness • Persisting shortage of cash • Deteriorating financial rations • Frequent request to banks and financial institutions for loans • Morale degradation of employees and desperation among the top and middle management level
  10. 10. Reasons for industrial sickness INTERNAL REASONS: I. Wrong selection II. Over construction III. Poor skill IV. Marketing problem V. Inability to cope up
  11. 11. EXTERNAL REASONS: I. Infrastructural reasons II. Finance problem III. Lack of interest IV. Slow growth
  12. 12. Assignment • What are the preventive and remedial measure of SSI. • Discuss the role played by SSI in the development of Indian economy. • Explain the problems faced by SSI and measures to tackle them. • Submission:25/8/14 • Test: 27/08/14

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