Location via proxy:   [ UP ]  
[Report a bug]   [Manage cookies]                
Scribd Logo
Upload

Welcome to Scribd!

  • 40 views

    Class: Xi Subject: Business Studies Topic: Small Business Week: February 1 Week Teacher'S Name: MS.: Dipti Mahajan

    Uploaded by

    Muhammad A Ismaiel
    Small businesses in India face significant challenges. They have chronic shortages of funds for both fixed and working capital due to inadequate support from financial institutions. They also struggle with shortages of raw materials and power due to their limited purchasing power and the unreliable power supply. Most small businesses use outdated production techniques and lack technical knowledge because they cannot afford modernization. They have difficulties marketing their products due to higher costs and inability to compete with larger companies or establish their own marketing organizations. Small businesses also have problems finding and retaining qualified personnel and lack proper organizational structures and management skills.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd

    Class: Xi Subject: Business Studies Topic: Small Business Week: February 1 Week Teacher'S Name: MS.: Dipti Mahajan

    Uploaded by

    Muhammad A Ismaiel
    40 views2 pages
    Small businesses in India face significant challenges. They have chronic shortages of funds for both fixed and working capital due to inadequate support from financial institutions. They also struggle with shortages of raw materials and power due to their limited purchasing power and the unreliable power supply. Most small businesses use outdated production techniques and lack technical knowledge because they cannot afford modernization. They have difficulties marketing their products due to higher costs and inability to compete with larger companies or establish their own marketing organizations. Small businesses also have problems finding and retaining qualified personnel and lack proper organizational structures and management skills.

    Original Description:

    Small Business

    Original Title

    Small Business

    Copyright

    © © All Rights Reserved

    Available Formats

    DOC, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Small businesses in India face significant challenges. They have chronic shortages of funds for both fixed and working capital due to inadequate support from financial institutions. They also struggle with shortages of raw materials and power due to their limited purchasing power and the unreliable power supply. Most small businesses use outdated production techniques and lack technical knowledge because they cannot afford modernization. They have difficulties marketing their products due to higher costs and inability to compete with larger companies or establish their own marketing organizations. Small businesses also have problems finding and retaining qualified personnel and lack proper organizational structures and management skills.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    40 views2 pages

    Class: Xi Subject: Business Studies Topic: Small Business Week: February 1 Week Teacher'S Name: MS.: Dipti Mahajan

    Uploaded by

    Muhammad A Ismaiel
    Small businesses in India face significant challenges. They have chronic shortages of funds for both fixed and working capital due to inadequate support from financial institutions. They also struggle with shortages of raw materials and power due to their limited purchasing power and the unreliable power supply. Most small businesses use outdated production techniques and lack technical knowledge because they cannot afford modernization. They have difficulties marketing their products due to higher costs and inability to compete with larger companies or establish their own marketing organizations. Small businesses also have problems finding and retaining qualified personnel and lack proper organizational structures and management skills.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    of 2

    11/10/2014

    NOTES
    CLASS : XI

    SUBJECT : BUSINESS STUDIES

    TOPIC : SMALL BUSINESS

    WEEK

    : FEBRUARY 1ST WEEK

    TEACHERS NAME:

    MS.

    : DIPTI MAHAJAN

    CLASS

    PROBLEMS OF SMALL BUSINESS IN INDIA


    Small enterprises have been facing a large number of problems in spite of
    problems of their continuous growth in our country. The common problems
    are explained below:
    (i)
    Shortage of Funds. Small enterprises have a chronic shortage of
    finance both for fixed and working capital requirement. Shortage of funds
    had led to closure of many small scale enterprises. The steps taken by the
    central and state governments have not been adequate. The special financial
    institutions such as IDBI, IFCI etc mostly serve the financial needs of large
    enterprises and commercial banks also hesitate to grant financial help to
    small business.
    (ii) Shortage of Raw Materials and Power. Most of the small factories
    have shortage of raw materials and other equipments because of limited
    means to buy in bulk and suppliers hesitate to provided credit facility to
    small business. Shortage of power is another factor which leads to
    underutilization of plant capacity. All the small business enterprises cannot
    afford their own generator sets to continue production during the period of
    non supply of power.
    (iii) Old Techniques of Production and Lack of Latest Technical
    Knowledge. Most of the small scale enterprises are using old techniques of
    production because they cannot afford new techniques, machines and
    equipments necessary for modernizing production. The margin of profit of
    small units is generally low due to which they cannot undertake innovative
    activities.
    (iv) Marketing Problem. Small scale industries face many difficulties in
    marketing their products because of many reasons such as:
    (a) The cost of production is higher so they cannot compete with large
    scale units.
    (b) They cannot afford to have their own marketing organization.
    (c) Products of many small firms are not having uniform quality.
    They do not follow quality control. This creates problems in marketing.
    Sometimes, they have to sell their products at very low prices as they require
    money immediately.

    11/10/2014

    CLASS

    NOTES

    (v) Personnel Problems. Securing right type of personnel is a major


    problem of small business. More important problem is problem of proper
    training, reasonable compensation etc. a small entrepreneur is often not
    having skill to bargain with trade unions. They cannot afford standardized
    techniques and process of selection.
    (vi) Imperfect Organizational Setup. In most of the small enterprises,
    the ownership and management functions are performed by owner only.
    Generally the owners may not have the necessary skill to manage the
    business also. There is not proper discussion of work among the people
    working in the organization that is why these enterprises cannot have
    specialization. Managing requires a lot of knowledge, foresightedness and
    training which are often not found in case of small business units.

    You might also like