The Real Shortcoming Of The Small Scale Industries





Pic - :: The Real Story Of The Shortcomings Of The SSI Unit 

Shortcomings of SSIs:

A lot of theories has been floated  all about the shortcomings of the Small Scale Industrial Units and even a lot of seminars and a lot of studies have ben made and discussed on it, yet so far as of now the shortcoming still looms large and very soon a concentrated ewffort has to be made on it by both the enterprenuaers and the Government to find out a solution so that this ector grows more and more and stays afloat .

Before concluding the section we would also like to point out a few shortcomings from which the SSI sector suffers.

(i) It forgoes possible benefits from economies of scale. This means that the prospects of small-scale units are best in sectors where economies of scale are less important.

(ii) It may not be possible for a small firm to utilise its capacity as much as a large firm can do for a variety of operational problems related to demand/power, finance, management, etc. In some cases, this may result in sickness and eventual closure.

(iii) Small industry is an easy entry sector and is, therefore, prone to overcrowding, and this tendency is accentuated by the incentive schemes.

(iv) Small sector may not be the most promising route to technological upgradation and dynamism because in most of the new sectors technology creation has become increasingly capital-intensive. The risk involved is also much greater. Hence, an emphasis on small-scale industry may result in the loss of a major source of productivity growth, namely technological progress. Increasingly, sub-contracting and subcontracting are becoming the nature of organising production.

(v) A significant segment of this sector is engaged in polluting industries. Apart from the fact that small scale production technology is inherently more polluting compared to large scale production, the small units suffer from certain disadvantages in controlling pollution. In many units the design of the effluent treatment plant is not proper. In many locations, adequate land space is not available for installation of treatment plant Non-availability of trained technical personnel poses a big hindrance. Financial constraints inhibit modernisation of production process on the one hand, and building and operation of treatment plant on the other.

(vi) An important argument against small-scale industrial units is the difficulty in controlling them, particularly in respect of taxation and labour legislation. Wages are often below acceptable standards and work hazards occur frequently.


Pic - : The Real Scene Of The One's Who Runs A SSI Unit 

Notwithstanding these shortcomings, SSIs present a pattern of industrialisation which is immensely favourable to the conditions obtaining in the country. They have the potential to provide gainful employment to a fast-growing force; they can be promoted with little capital; they help in the decentralisation or the horizontal spread of economic growth; they lead to a better distribution of gains of development and are a potent instrument to mobilise latent resources. Above all, small industries go well with the level of technology indigenously available.

Well , that is it and That sums it all.

Regards and Thanks

Pics



Shyamal Bhattacharjee 

Mr Shyamal Bhattacharjee, the author was born at West Chirimiri Colliery at District Surguja, Chattisgarh on July 6th 1959 He received his early education at Carmel Convent School Bishrampur and later at Christ Church Boys' Higher Secondary School at Jabalpur. He later joined Hislop College at Nagpur and completed his graduation in Science and he also added a degree in    B A thereafter. He joined the HITAVADA, a leading dailies of Central India at Nagpur as a      Sub-Editor ( Sports ) but gave up to complete his MBA in 1984 He thereafter added a Diploma In Export Management. He has authored THREE books namely Notable Quotes and Noble Thought published by Pustak Mahal in 2001 Indian Cricket : Faces That Changed It  published by Manas Publications in 2009 and Essential Of Office Management published by NBCA, Kolkatta  in 2012. He has a experience of about 35 years in Marketing .






Signature Of Shyamal Bhattacharjee 

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