CHALLENGES AND PROBLEMS IN FRONT OF SMALL-SCALE INDUSTRIES

Abstract

Small Scale Industries (SSIs) contribute significantly to the economic growth of developing countries. They serve as a source of employment for a large segment of the population, especially in rural areas. However, numerous challenges face these enterprises, affecting their growth and sustainability. This essay looks at the opportunities and challenges faced by Small Scale Industries.

In the era of entrepreneurship where there is a cut throat competition everyone wants to set up his own business. Setting up of a large industry require huge capital and risk.  Contribution of MSMEs to the Indian economy in terms of employment generation, containing regional disparities, fostering an even-handed economic process and enhancing the export potential of the country has been quite extraordinary. Despite some infrastructural deficiencies and challenges like the flow of institutional credit and inadequate market linkages, this sector has registered exceptional success with respect to the increase in variety, quantum of investment, scale of production and overall contribution to national gross domestic product. The study makes an effort to specialize in the massive growth potential available for the development of SSI sector, to find out vital problems and challenges.