Discuss the various measures to solve the problems of cottage and small scale industries or

Discuss the role of state in solving the problems of small

Any government can take advantages by their cottage and small scale industries if they take
some important steps for this industry. We discuss the important measures to solve the problems
of cottage and small scale industries under these headings :

1. Credit Facilities :-
The government should provide the credit to small and cottage industries at lower rate of interest.
Further commercial banks are also providing loan to develops the industries.
2. Industrial Estates :-
The government has set up the number of industrial estates in the different cities. These areas
have been provided various facilities like, roads, banking, and transport facilities to encourage
the small scale industries.
3. Testing Laboratories :-
The government has established the testing laboratories to maintain the prescribed standard of
cottage industries product.
4. Supply of Designs :-
The government also provides the new models and designed to producers to improve the quality
of cottage industry.
5. Publicity :-
The government has set up the display centers and show room,s inside and outside the country to
increase the sale of cottage industry product.
6. Facility of Raw Material :-
The government imports the raw material for the cottage industries from abroad and provides
them at lower price to encourage them.
7. Purchase of Cottage Industry Product :-
The government also purchases finished products from them and sells it at show room. Govt
display centers in side and out side the country are creating the demand.
8. Protection Against Foreign Competitions :-
The government has also provided protection to home industry by imposing heavy duties on the
imports. Still there is a need of further protection. Smuggling should be also controlled.
9. Establishment of Training Institutions :-
The government has set up various institutions like industrial, vocational, commercial and
polytechnic institutions to provide the qualified workers to the cottage and small scale industries.
10. Carpet Centers :-
For the training of weavers the small corporation have set up carpet training development
centers. These are working very usefully.
11. Handicraft Centers :-
Handicrafts development centers have been set up to promote the handicrafts.
12. Advisory Services :-
The small scale industries advisory services has been set up in each province to provide guidance
to the new comers in small scale industry.


What are the problems of cottage or small scale industries and suggest measures to
improve these industries

No doubt small scale industry has great importance in economy but unfortunately this sector was
neglect in the past.
Following are the main problems of cottage or small industries :

1. Lack of Finance :-
The cottage and small scale industry is facing the problem of capital shortage. The financial
institutions are not ready to provide the credit on low rate of interest. It is an obstacle in the ways
of small scale industry development.
2. Competition :-
There is a stiff competition between the large scale industry and small scale industry and usually
small scale industry suffers a loss.
3. Import Policy :-
The import [policy of the government is also not favorable for the small scale industry. It
discourages the small scale industry.
4. Smuggling :-
Smuggling of large scale consumer goods from Russia, Iran and Singapore has also discouraged
the small scale industry.
5. Problem of Raw Material :-
The owner of the small scale industry can not get enough raw material what he wants. Poor
quality of raw material is provided on higher prices to the small industry.
6. Old Methods of Production :-
Small industries use old machines and old methods of production. Due to this the quality of
small scale industries product is very poor. So they are helpless to sell the product at low rate.
7. Lack of Marketing Facility :-
The marketing facilities are inadequate in the country. The small and cottage industries are
selling their product at the low prices in the hands of middleman. Even they can not advertise
their product on T.V because they have not sufficient capital for this purpose.
8. Lack of Qualified Staff :-
The cottage industries can not employ the qualified engineers and economists. It reduces the
quality of product.
9. Shortage of Electricity :-
There are a large number of villages where electricity is no available. The non availability of
electricity is an obstacle in the way of small scale industries.
10. Breakdown of Electricity :-
The regular break down of electricity has also affected the production of small scale industry
adversely. Prices of electricity are also rising day by day. Higher prices has increased the cost of
production.
11. Lack of Standardization :-
The mixing of good and bad product creates problems of marketing inside and outside the
country. The product is not standardized.
12. High Cost of Production :-
The mostly cost of cottage industry is very high. Because the process of production is very slow
and raw material is also bought at higher prices. Rates of electricity charges are also increasing.

13. Entrepreneur is Uneducated :-
Mostly cottage industries are owned managed and controlled by literate people. They follow the
old methods and production remains very low.
14. Lack of Roads and Transport Facilities :-
There is a lack of roads, transport, water supply, electricity and telephone facilities for the small
scale industry. When infrastructure will not be available how those can flourish.
15. Lack of Storage Facilities :-
The small scale industry in particularly in villages is lacking storage facilities. A huge product is
wasted due to the problem.

What is cottage and small scale industry? discuss its importance in the economic
development or What are the main advantages of cottage and small scale industry

Cottage Industry :-
It means the industry is run in the home usually with the help of family members. Simple
implements are used and workers are not paid wages.

Small Scale Industry :-
In the small scale industry the male members of the family along with hired labour work
together. In small industries, electric power and improved machines are mostly used in
subcontinental the firm employing less than 10 person are classified as small. In subcontinental
Carpet industry , poultry farming, bee keeping, tailoring and furniture making is included in the
cottage and small industry.

Importance :-
There is a shortage of capital and technical skill in subcontinental. It is not possible to establish
the heavy industries. While it is very easy to increase the number of small scale industries. The
examples of Japan, Hong Kong and Taiwan are before us.
Following are the main advantages of small scale industry in subcontinental :

1. Increase in Industrial Product :-
There is a shortage of manufactured goods in our area. We spend a lot of foreign exchange on
the import of these goods every year. So we should increase the small scale and cottage industry
to remove the shortage of these goods.
2. Increase in Employment :-
The rate of unemployment is increasing day by day. To control unemployment it is necessary
that we should increase the small scale industries because these are labour intensive. Our farmer
can also easily work in small scale scale industry. It is not possible to provide Govt. jobs to all
the unemployed people. It may also increase the self employment.
3. Increase in Foreign Exchange Earnings :-
the various kinds of goods like carpets and sports sold in the international market. We earn a lot
of foreign exchange by exporting these goods.
4. Use of Industrial waste :-
The waste of large scale industries like cotton and steel can be used by the small scale industry.
In this way we can save a lot of capital.
5. Provides Employment to Women :-
Our women is engaged in the cottage and small scale industry and increasing the production.
Because in our society women can not work with other men in the factories. We should increase
the number of cottage industries to make the female sector a real asset of the nation.
6. Increase in The Income :-
Increase in the production of goods on small scale increase the income of the people. The rise in
income improves the standard of living. In rural areas there is great need of small scale industry.
7. Cheaper Production :-
The small scale industry is labour intensive while labour is cheap in subcontinental, so the
production of small scale industry is cheaper. Due to low prices people purchase more goods
and market expands.
8. Proper Distribution of Wealth :-
The small scale industry increases the income of the people and reduces the gap between rich
and poor. We can reduce the poverty by expanding the small scale industry.
9. Establishment With Small Capital :-
We can establish these industries with small capital. In subcontinental most of the people are
poor, so they can start the production with small capital.
10. Development of Backward Areas :-
We can develop backward areas by establishing the small scale industry in these areas. It will
remove poverty from backward areas.
11. Reduction of Population Pressure :-
The development of small scale industry reduces the pressure of population on land and
increases the income of the people.
12. Reduction in Migration :-
The unemployed labour force is migrating to the other countries. If we expand the small scale
industry, it can serve the nation instead of serving the other countries