Q.Explain the main problems faced by small-scale industries and the government measures available to address them.

SSI's problems (finance, raw material, marketing, technology, infrastructure) each have a matching category of government support.

Problems faced by small-scale units:

• Finance — difficulty raising capital due to weak collateral and no access to capital markets.
• Raw material — inability to buy in bulk, exposing units to shortages and price fluctuation.
• Marketing — weak marketing capacity and distribution reach against large branded competitors.
• Technology and skilled labour — inability to afford the latest machinery, and difficulty retaining skilled workers large industry can out-pay.
• Infrastructure — unreliable power supply and poor transport connectivity, especially in smaller towns.
• Managerial deficiency — heavy dependence on a single owner-manager, without access to specialised professional management.
• Competition — from both large domestic industry and, since liberalisation, imported goods.

Government measures:

• Financial assistance — institutional credit on more favourable terms, including schemes aimed at first-generation entrepreneurs.
• Subsidies and fiscal incentives — to lower the effective cost of setting up or expanding a unit.
• Technical guidance and training — help with technology selection, quality, and skill training. …

A common mistake is listing problems and government measures as two disconnected lists rather than showing …