Challenges Of Small EnterprisesAdstoppi Web Traffic
Published by: Adstoppi
Face material problem mainly in getting this material either or a number of reasons that are many. The micro and small businesses that depend on resources for material demands face the problem of a kind. An illustration of the type is handloom business that depends on traders for the need for cotton. These dealers supply their cotton they'd sell their clothing that is ready to these traders. What happens the dealers sell cotton to them. This becomes the clearest illustration of how bad weavers are subjected into double exploitation at their hands of dealers. Keeping in view the raw substance issue of micro and tiny enterprises, the Government makes provisions for making raw substance available to these units.
Nevertheless, micro and small enterprises without a special staff for liaison with the official agencies, those units are left with insufficient supplies of raw material. Consequently, they've into a resort in open market purchases at very substantial rates. This, in turn, increases their cost of production, and, thus, puts them in an unfavorable position vis-a-vis their larger rivals. The problem of Finance: An essential problem faced by micro and small businesses within the nation is that of finance. The issue of finance in micro and tiny sector is large because of weak credit worthiness of micro and tiny businesses numerous reasons.
First of all, it's due in part to deficiency of capital within the country as a whole. Second of all, it's due in part their weak financial foundation, they find within the country. Because of bound to receive credit from the money lenders on a very substantial interest rate and are, thus, exploitative in character almost impossible to take financial help bound to receive credit from the money lenders on a very substantial interest rate and are, thus, exploitative in character. As such, they're bound to receive credit from the money lenders on a very substantial rate of interest and are, thus, exploitative in character. 251 crores in June 1969, it rose into a staggering figure of Rs.