The path of small entrepreneurs is not rosy. Small entrepreneurs face the following types of problems:
(1) Problem of raw materials:
i. Availability of inadequate quantity
ii. Poor quality of materials
iii. High cost of raw materials etc
(2) Problem of finance:
(i) Scarcity of capital in the country as a whole.
(ii) Weal credit-worthiness of small units in the country. Due to their weak economic base, they find it difficult to take financial assistance from the commercial banks and financial institutions.
(3) Outdated technology:
Most of the small entrepreneurs depend upon old techniques and equipment. These units find it very difficult to modernize their plant and machinery due to limited capacity and capital.
(4) Managerial problem:
Another serious problem for small scale units is managerial inadequacies. Modern business demands vision, knowledge, skill, aptitude and whole hearted devotion. The managerial competence of the entrepreneur is very important for the success of any venture.
(5) Other problems:
In addition to above discussed problems, the small scale industries have been constrained by a number of other problems such as trained technicians, technological obsolescence, unorganized nature of operation etc.
(1) Problem of raw materials:
i. Availability of inadequate quantity
ii. Poor quality of materials
iii. High cost of raw materials etc
(2) Problem of finance:
(i) Scarcity of capital in the country as a whole.
(ii) Weal credit-worthiness of small units in the country. Due to their weak economic base, they find it difficult to take financial assistance from the commercial banks and financial institutions.
(3) Outdated technology:
Most of the small entrepreneurs depend upon old techniques and equipment. These units find it very difficult to modernize their plant and machinery due to limited capacity and capital.
(4) Managerial problem:
Another serious problem for small scale units is managerial inadequacies. Modern business demands vision, knowledge, skill, aptitude and whole hearted devotion. The managerial competence of the entrepreneur is very important for the success of any venture.
(5) Other problems:
In addition to above discussed problems, the small scale industries have been constrained by a number of other problems such as trained technicians, technological obsolescence, unorganized nature of operation etc.
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