Small-scale industries are occupying a very important place in the industrial structure of Indian economy. Therefore, appropriate steps should be taken to remove all those problems the industries suffer for their survival and growth. The environment in which the industry operate must be conducive for the development of industries.
Small-scale industries in India could not progress satisfactorily due to various problems that they are confronted with while running enterprises. In spite of having huge potentialities, the major problems, small industries face are given below.
Small-scale industries are fairly labour-intensive. They provide an economic solution by creating employment opportunities in urban and rural areas at a relatively low cost of capital investment.
All types of small-scale industries found in India whether in manufacturing sector or service sector are divided into five types: Those units which are producing complete articles for direct consumption and also for processing industries are called as manufacturing industries.
Rural industries is constrained with several problems. The growth of rural industries is not very healthy due to the following factors : movement of various industrial activities. This is a major problem faced by rural entrepreneurs.
The Features of Rural Industries are :- Rural industries are labour intensive, thus have high potential in employment generation. High potential for income generation in rural areas.
After independence our great leaders thought of developing our industries. Without industries our country could not make progress. Therefore, plans were made to set up basic industries.
Cottage industries have always existed in our country but they were not developed to their full capacity during the colonial rule. The members of a family from within their homes usually run these units.
We have many other large-scale industrial units manufacturing cement, automobiles, chemicals, fertilizers, sugar, paper, electronic goods, and telephones, defence equipment, etc. Our country has made rapid progress in almost every industry since independence.