CHAPTER – V
PROBLEMS FACED BY SMALL SCALE INDUSTRIES
The development of small-scale industries is hampered by a
diversity of problems. There are certain problems common to all types of cottage and small scale industrial units. In this context, the present chapter is devoted to a detailed study of the problems of the small-scale industrial sector. It also seeks to suggest remedial measures. The basic requirement for the industrial development of a region is the presence of entrepreneurship in that area. The non-availability of adequate finance, paucity of raw materials, absence of technical and managerial guidance, and non-availability of industrial accommodation and marketing facilities are the other major problems facing the small-scale sector. The slow growth industries in Tamil Nadu have been due to lack of entrepreneurship, which performs the function of initiating, establishing and organizing industries. The people of Tamil Nadu, in fact lack enterprising character as compared with people in other states. Under the circumstances, the state Government entered the economic field and established important industries in the public sector. Without private participation, it is very difficult for an under-developed state to active industrialization. Therefore, the development of local private talent is highly essential. In this connection, it should be kept in view that entrepreneurship talent is not the monopoly of any particular race. 210 Entrepreneurship can be developed by proper education, training, and provision of necessary cost and market data. It also requires complete reorientation of the curriculum so that young persons are provided with opportunities to develop new skills and attitudes that would turn them into entrepreneurs. The provision of proper training facilities helps in the development of entrepreneurship. Proper training, persuasion, guidance and assistance can bring about radical change. The self-employment...