Small Scale Industry and Problems of Small Scale Industry

Small Scale Industry

Small scale industry has always been praised in different ways in various countries. In Pakistan this industry is that one which after employing 2 to 9 workers produces different goods for the market on small scale. Following are the main small scale industries.
Poultry farms, dairy farm, honey making industry, carpets, pots, sports goods, fans and electric motors etc.

Problems of Small Scale Industry

(I) Decreases in the Productive Capabilities of the Labour  

Small scale industrialists have less capital. That’s why they cannot expand their bussiness due to lack of capital.

(II) Lack of Technical Skills  

 Workers are uneducated and unskilled. Due to non-availibility of new technology it is very difficult for the semi skilled and illiterate workers to maintain the standard of their products. So they cannot establish large scale industry because of lack of technical skills.

(III) Lack of Cooperation

Due to lack of cooperation small scale industry faces different difficulties. The difficulty to find the profitable markets and competition with the large scale industries which produces better goods and the small industry has to face losses.

(IV) Outdated Means of Production

The cause of problems in small scale industry is that they use mainly old and outdated means of production.

(V) Step Motherly Treatment

The Step Motherly Treatment of the government departments creates lot of problems. Small industry finds it difficult to get the good raw material. It cannot train their workers and pay them good wages. They work without the benefits of social security