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