Limitations of small scale industries

They extend co-operation to the workers and promote team leadership qualities. They are, thus, inferior in quality and higher in cost.

Industrial estates are established and infrastructural facilities are provided for the progress of the small scale enterprises. There can be no fraud or idleness. They are therefore forced to differentiate themselves in other ways, such as customer support or quality of the product or service, in order to compete.

Ancillary industries: Now-a-days small scale Enterprise are started as ancillary units to the large scale industries.

importance of small scale industries

A watch making industry depends on small scale units for the necessary spare parts of watches. Direct contacts between the employers and the workers: Small scale production establishes direct contacts between the employers and the workers. Economy of transport : Small scale production secures economy of transport.

There are several consumer who prefer to buy man-made goods.

Advantages and disadvantages of large scale industries

Thus, many unemployed persons are employed in the newly developed small scale industries. The advantages of division of labour are, therefore, lost to the small producer. Their wages are less and therefore motivation levels of workers is also quite low. The producers do not have the capacity to bear losses for long. They consider that man-made goods have good quality and appearance. This also raises his cost of production. Lack of Division of Labour: In the small scale industries, the size of production is small, and there is lack of division of labour and less profits to the entrepreneurs.

All this means a great saving. But after the economic liberalization policy followed by the government, many of the items have been De-reservad.

disadvantages of cottage industry
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The Disadvantages of Small