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1. Presentation
On
Sickness in Small Enterprises
Presented To
Dr.Navita Nathani
Presented By
Rohit Kashyap

2. Introduction
Definition of sickness
In common parlance, a sick industry is one which is not
healthy. A healthy unit is one which earns a reasonable return
on capital employed and which builds up reserves after
providing reasonable depreciation.

3. Industrial Sickness
It is a define as ’’ an industrial company which has , at the end
of any financial year accumulated losses equal to, or
exceeding its entire net worth and has also suffered cash
losses in such financial year.

4. Classification
Manufacturing Enterprises:
• Micro Enterprises – investment up to Rs. 25 lakh
• Small Enterprises – investment above Rs. 25 lakh and up to
Rs. 5 crore
• Medium Enterprises – investment above Rs. 5 crore and up
to Rs. 10 crore
Service Enterprises:
• Micro Enterprises – investment up to Rs. 10 lakh
• Small Enterprises – investment above Rs. 10 lakh and up to
Rs. 2 crore
• Medium Enterprises – investment above Rs. 2 crore and up
to Rs. 5 crore

5. Process of Sickness
• Sickness is an organic process in the life of industrial units,
and so the phenomenon of sickness does not develop in a
single day. The event of sickness may have origin followed by
several stages i.e., healthy stage to sickness stages.
Normal Units
Tending Towards
Sickness
Incipient Of
Sickness
Sickness

6. Causes of Industrial Sickness
• Internal Causes for Sickness
• External Causes of Sickness

7. Internal Causes for Sickness
Internal causes are the factors which are within the control of
management. This sickness arises due to internal disorder in the areas
as follow:-
• Lack Of Finance
• Bad Production Policies
• Marketing And Sickness
• Inappropriate Personnel Management
• Ineffective Corporate Management

8. External Causes of Sickness
The external causes are those which affect industrial group as a whole
and on these the industry has no direct control:-
• Personnel Constraints
• Marketing Constraints
• Production Constraints
• Finance Constrains