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Question
Attempt the following.
Explain in brief the impact of capital on Small Scale industries.
Solution
The major problem faced by small scale industries is insufficient capital, which creates the following difficulties with them.
- Borrowings of Capital from Landlords and Money Lenders: Nationalised and Co-operative banks are not ready to finance Small Scale Industries without security. Thus, they are forced to borrow from money lenders, where they have to pay a very high rate of interest.
- Storage of Raw material: Small Scale Industries are agro-based. The raw material is available seasonally. To stock goods, they required huge finance. Due to lack of finance, they run industry only in seasons.
- Lack of Skilled Labour: Only unskilled and semi-skilled labourer are available. Small Scale Industries cannot afford labour cost of skilled labourer which affect the quality and quantity of production and profitability.
- Outdated technology: Due to insufficient capital, production methods used by SSI are old, which results in poor quality and quantity of output.
- Weaker Marketing Skill: In today's world marketing plays an important role. The rural area is facing marketing problem due to lack of facilities and knowledge and they are exploited by middlemen too.
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RELATED QUESTIONS
Select the correct option and rewrite the sentence.
_______ cost of power acquisition, frequent power cuts, irregular supply of power affect the productivity of SSI.
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Before setting up a business, it is essential to study the prevailing _________ environment.
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees.
State True or False:
Small Scale industries should be developed in order to maintain, economic balance in a country
Find the odd one.
Find the odd one.
Select the correct option.
| A | B |
| More than ₹ 25 lakhs but Does not exceed ₹ 5 cores | ______________ |
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Answer in one sentence.
What is SSI?
Correct the underined word and rewrite the following sentence.
SSI begins with large amount of capital.
Arrange in proper order.
a) Selection of a place
b) Selection of a product
c) Business proposal
d) Selection of technology
Explain the following term/concept.
Small Scale Industry
Explain the following term/concept.
Service Sector
Explain the following term/concept.
Micro Small Scale Business
Give one word/phrase/term. For the following sentence.
An industry using power with less than 50 employees
Give one word/phrase/term for the following sentence.
An industry using power with less than 50 employees
Give one word/phrase/term.
An industry using power with less than 50 employees.
Give one word/phrase/term. For the following sentence:
An industry using power with less than 50 employees.
