Small scale industries have to face many problems:
1. Lack of Adequate Finance : Due to small scale of production and sale, Banks and Financial Institutions are afraid to give loans.
2. Problem of Raw material : Due to inadequate finance they cannot purchase raw material at a time. Thus, the cost of raw material increases.
3. Labour Problem : Due to inadequate finance, they cannot employ skilled labour which affects the production.
4. Marketing Problem: The goods manufactured if not marketed properly can be risky as it will affect the sales,
5. Problem of Transport: Transportation cost increases the cost of the product which hampers the sale as large scale industries cost may be less.
6. Sickness : Due to financial problem industrial units are unable to sustain themselves and finally turn to sick units.
7. Thus, Small Scale Industries have problems
