I. Problems of cottage and small industries are:
1. Problems of Raw Material:
These problems are related to lack of homogenous raw material, costly raw material, inferior quality supply at the local level, and less and untimely supply due to the government control.
2. Financial Problem:
Absence of cheap and sufficient finances for the industries and the handicrafts.
3. Problems of safe industrial turnout:
In the absence of organised marketing systems the producers cannot get reasonable price. They have to suffer a big financial loss for selling their products through the middlemen.
4. Problem of competition from large scale industries:
The small entrepreneurs have to face stiff competition in the market for getting raw material and for the sale of their production.
5. Problem of electricity power supply:
In Rajasthan supply of electric power is 30% less than in demand for it. As a result production goes down due to insufficient electricity supply. Sometimes there is a long delay in giving electricity connection to the industrial units.
6. Problem of development production technique:
Use of old technique in production lower the production target. Very often investment is more than production.
7. Problem of sick Industries:
Many less experienced entrepreneurs misuse the money they get from the financial institutions. The industries run in loss. Consequently the industrial units become sick units thus due to lack of proper experience.
8. Problem of expert management:
Generally the trained and professional persons are not appointed. The entrepreneur has to use his own discretion. The means are often misused and there arises the problem of loss.
9. Problem of certification, standardisation and production of quality goods:
The people have a general tendency to purchase the standardised goods produced by the large scale industrial units. They often suspect the quality of the production by the small industrial units.
II. Solutions or Remedial Measures:
1. Cooperative system:
Problem of supply of raw material can be solved by developing the cooperative movement, so that the entrepreneurs may start production on time.
2. Financial Remedy:
Government has made a provision of many financial institutions to give loan to the small scale and cottage industries at the reasonable rate of interest.
3. Cooperative sales/purchase organisations:
Government should purchase the proceeds from the farmers through cooperative organisation at the fair price and the reasonable support price should be revised from time to time.
4. Reservation policy for small industries:
Some industries should be included in the reservation list so as to enable them face competition from the large industries.
5. Electrification of villages and towns should get priority and at the same time adequate power supply should be maintained.
6. Use of new techniques:
The farmers should be encouraged to apply the latest technique and at the same time they should be trained in the proper use of those techniques.
7. Efficient management:
If the agricultural activities are managed by the expert and efficient hands about 20% production capacity can be enhanced.
8. Production of certified products:
Usually the people prefer to buy commodities produced by the large industries. This problem can be solved if the small scale industrial products are certified by the government.
