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