       The problems of industries, whether in small scale sector or in the organized sector are almost identical. The organized industry is financially very strong & its resources are large, it can therefore face its problems more effectively. Because of its weak financial structure, the resources of small-scale sector are limited.
      The large scale sector can employ trained & experienced managers but in the small industry the proprietor or the partners have to take care of all the problems by himself or themselves. The large sectors can influence its raw material suppliers, its customers & at times even the government in framing its policies but the small entrepreneur is helpless in this respect. He therefore has to look after the entire spectrum of problems despite the great limitations under which he function.
Opportunity:
       The opportunities in the small-scale sector are enormous due to the following factors;
- Less Capital Intensive
- Extensive Promotion & Support by Government
- Reservation for Exclusive Manufacture by small-scale sector
- Project Profiles
- Funding Finance & Subsidies
- Machinery Procurement
- Manpower Training
- Technical & Managerial Skills
- Tooling & Testing Support
- Reservation for Exclusive Purchase by Government
- Export Promotion
- Growth in demand in the domestic market size due to overall economic growth
- Increasing Export Potential for Indian Products.
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        Growth in requirements for ancillary units due to the increase in number of Greenfield units coming up in the large scale sector. Small industry sector has performed exceedingly well & enabled our country to achieve a wide measure of industrial growth & diversification.
       By its less capital intensive & high labour absorption nature, SSI sector has made significant contributions to employment generation & also in rural industrialization. This sector is ideally suited to build on the strengths of our traditional skills & knowledge, by infusion of technologies, capital & innovative marketing practices.
      This is the opportune time to set up projects in the small-scale sector. It may be said that the outlook is positive, indeed promising, given some safeguards. This expectation is based on an essential feature of the Indian industries & the demand structures. The diversity in production systems & demand structures will ensure long-term co-existence of many layers of demand for consumer products / technologies / processes.
      There will be flourishing & well grounded markets for the same product/process, differentiated by quality, value added & sophistication. This characteristic of the Indian economy will allow complementary existence for various diverse types of units. The promotional & protective policies of the government have ensured the presence of this sector in an astonishing range of products, particularly in consumer goods.
      However, the bugbear of the sector has been the inadequacies in capital, technology & marketing. The process of liberalization coupled with the Govt. support will therefore, attract the infusion of just these things in the sector.
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