What Are The Problems Of Small Scale Industries In The Undeveloped And Developing Countries( Especially In Agrobased And Agro Allied Industries)?

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abdul rehman answered
An important feature of small-scale industries in developed countries is that their production cost is high. This happens because of lack of credit; high interest rate untrained labor force, high prices of raw materials, high transport cost etc. the identical products by two different units cist the producers differently due to lack of co-ordination and cooperation among themselves. It means that different prices for the identical products. This situation shakes the confidence of the consumers and they prefer to buy machine-made goods. The product of these industries in under-developed countries have lack of standardization which affects their popularity adversely this situation is created because of the production processes are done by untrained personnel and they lack in professional skill.

Thus the standardization cannot be ensured. These industries do not receive patronage from the people and the general tendency is that the prefer machine made goods. Lack of people's patronage is considered to be a factor, which hinders the growth of these industries. The power supply is hardly available outside the narrow limits of cities and town to be used in small-scale industries. The result is that the turnover is small and production cost is high. There is also a shortage of natural gas of these industries. The behavior of consumers is often affected by the consumption pattern of their neighbors. Thus, the demonstration affect has a vital role in their consumption pattern. The consumers like imported goods rather than indigenous goods. This behavior discourages these industries.

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