Problems Of Management Of Small Scale Industry

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Problems Of Management Of Small Scale Industry


Abstract


The diverse structure of the economics of the third world countries and the predominance of good markets for industrial goods provide good environment conditions to support the growth of small – scale industries. The structure of the developed countries. This is why large scale industries are not suitable for developing countries (at least in the initial stages of industrialization).

Governments in Nigeria having realized this, employ every available means to render assistance to promote high growth of small-scale industries. Despite all these assistance, most small-scale industries in Nigeria stil perform very low below expectations. This is why the researcher choose to find out the causes of the problems. The researcher was able to identify the following as the major problems.

  1. Bad management of resources,
  2. Insufficient capital,
  3. Lack of division of labour and
  4. Recruitment of unqualified personnel.

Chapter One


Introduction

1.1 Brief History Of Farmers In Udi

Udi farmers was established august 1989. Situated just at the southern end of Afor main market Udi, the farm was set up primarily to receive parboiled rice from local farmers for milling. In addition to this, the farm raises poultry and pigs. The rice milling machines were installed in November 1989. by this period, the piggery house was still being constructed. The actual milling of rice took off by mid-December 1989 and progressed smoothly to the following year. By mid 1990, a new section (the poultry section) was added, including all the necessary equipment for poultry and piggery production. The premises house two giant store apartments and a residential structure for some staff members. The entire premises was rounded with a well planned and solidly built fence with three entrances guarded by metal gates.

Staff Recruitment:

Various categories of staff were recruited to serve the organisation. These ranged from poultry and piggery attendants, watchmen, engine and plant operators, finance clerks, cleaner, motor vehicle drivers, sales personnel and a manager. At least one person was recruited from every village that make up town. This was in agreement with the primary aim of the entrepreneur and his sponsor (the Italian Aids society Austria) to help the less privileged and the rural populace.

When the entire organisation was fully operational in 1990, the three sections were under the control of a manager who organises and co-ordinates the activities of the milling, piggery and poultry staff. No staff was permanently attached to a particular department and where a staff performs his function each day depends on the wishes and dictates of the manager. The organisation practised shift duties and no staff can say with certainly when he or she would be morning or afternoon duty as this also depends on the ditches of the manager.

The organization grew rapidly for some years, and has more than two thirds of the rice farmers in the town as its customer. The piggery and poultry sections flourished very well. Eggs, table birds, pork and poultry droppings were available in the market. These things were bought with ease and at reduced prices. Infact customers trouped to the farm to mill their rice because of reduced prices and good service given them. There was serious competition among this farm and other rice milling establishments in the town. Infact, Udi farmers became the talk of the town.


1.2 Problems Associated With The Study

However, this growth cannot be achieved without some problems. There was no permanent source of good water for the birds, pigs and filling the tanks for the water cooling machines. There was also the problems of stock replacement especially in piggery section where the stock is imported from overseas. Bad roads, insufficient power supply incompetent managerial personnel and lack of sufficient capital militate against the farm. The result is that today, the poultry department has seized operation while the piggery section is heading towards education. However, only the milling section is operating with some difficulties caused by high prices of its milling service.


1.3 Problems That The Study Will Be Concerned With

Udi farmers enjoy government protection and promotion to encourage its growth just like other small scale industries in Nigeria. In spite of this, many problems militate against the farm and these included the following:

  1. Lack of competent hands to manage the poultry section. this had led to the recent closure of the poultry section.
  2. Stock replacement posed great problem to the piggery section. The exotic breed of pigs imported from switze land do not usually get to the farm when required. This has led to significant decrease in the number of stock available.
  3. There was no proper division of labour I Udi farmers, consequently there was no proper staff performance appraisal and evaluation.
  4. There was no good and permanent source of water supply. The birds and pigs were fed with polluted and muddy water. Mortality rate of the birds were high and the tanks serving as reservoirs for cooling the rice mills had leak ages all over.
  5. The idea of recruiting staff from all the village that make up the town up the town was a bad management style. The result of this was the recruitment of unqualified and incompetent staff.
  6. Udi farmers was pricing out itself from market. Charging of high price per bushel of rice milled resulted to loss of many customers

Problems Of Management Of Small Scale Industry


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Frequently Asked Questions


How to avoid the problems of small scale industries?

Measures to Avoid the Problems of Small Scale Industries. 1. Problem of Finance: The most important problem faced by these industries is that of finance. The financial position of SSIs is a part of the wider problem of capital scarcity in the economy as a whole.

What are the problems faced by small Indus­tries?

Small industries have to pay local and other taxes which result in raising the sale price adversely effecting the marketability of their goods. There is no uniform tax policy throughout the country in this regard. Small indus­tries have to face competition from well organised large scale industries.

Are small scale industries suitable for anciliarisation?

Even the Small Scale Industrial Policy has not identified the industries which are suitable for anciliarisation and sub­contracting to exploit economies of scale and to enhance the competitiveness of small scale units. In addition to the problems enumerated above, the small scale industries have been constrained by a number of other problems also.

What are the problems faced by small scale entrepreneurs?

So small entrepreneurs are facing the constraint of inefficient labour force and unable to improve their productivity. Small scale industries are facing the problem of short supply of raw materials. Small size and weak financial position also force them to unutilise the services of middlemen to get raw materials on credit from suppliers.

What are the problems of small scale industries?

Some of the problems of small scale industries are:- 1. Problems of Finance 2. Problem of Raw Materials 3. Problems of Marketing 4. Dealing with Government Agencies 5. Export Difficulties 6. Inefficient Labour 7. Defective System of Supply of Raw Materials 8. Absence of Credit Facility 9. Lack of Machinery and Equipment 

Are small scale industries suitable for anciliarisation?

Even the Small Scale Industrial Policy has not identified the industries which are suitable for anciliarisation and sub­contracting to exploit economies of scale and to enhance the competitiveness of small scale units. In addition to the problems enumerated above, the small scale industries have been constrained by a number of other problems also.

How to motivate the small-scale sector to produce high quality goods?

Therefore, the main aim should be to motivate the small-scale sector to produce high quality goods by providing them necessary financial assistance, raw materials, technical guidance, marketing assistance, etc. The Small-Scale Units are faced with the problems of scarcity of raw materials.

What are the strategies for the development of small scale industry?

With full advantages of changing technique of production, dispensation of technical knowledge, both to the small-scale entrepreneurs as well as their workers, should form an essential element of the overall strategy. Provision of adequate facilities for industrial education and training, therefore cannot be over-emphasised.

What are the problems faced by small scale industries in India?

Therefore Small Scale Industries have to now counter the twin forces of competition from Indian large scale enterprises as well as foreign competitors. The following are the problems faced by Small Scale Industries: 1. Poor capacity utilization

What are the major business problems faced by small businesses?

One of the major business problems faced by small businesses is lack of proper marketing. When you establish your business, you are not provided with a notebook explaining all the A-Zs of marketing and marketing strategy for your business.

What are the problems of cottage and small scale industries?

There are other problems of cottage and small scale industries such as lack of skilled manpower, lack of modern technique of production, lack of fuel, no diversification in production, etc.

What are the problems faced by large scale industrial units?

These units have to face numerous problems like availability of inadequate quantity, poor quality and even supply of raw material is not on regular basis. All these factors adversely affect t e functioning of these units. Large scale units, because of more resources, normally corner whatever raw material that is available in the open market.

What is a small scale industry example?

Small Scale Industries. Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale. For example, these are the ideas of Small scale industries: Napkins, tissues, chocolates, toothpick, water bottles, small toys, papers, pens. Small scale industries play an…

What are the handicaps faced by small scale industries in India?

One of the handicaps faced by small-scale industries in India has been the lack of well-developed space with the necessary infrastructure for carrying on their manufacturing operations. In order to overcome this problem, the Government of India launched the programme of setting up industrial estates in 1955.

What are the advantages and disadvantages of small scale industries?

The advantages and disadvantages of small scale industries are detailed below. 1. Niche charm: Something made by a small scale producer feels much more special and unique than something that has been churned out along with thousands of identical items in a large factory. 2.

What are small scale industries (SSI)?

Small scale industries (SSI) are those industries in which manufacturing, providing services, productions are done on a small scale or micro scale.

What are the small business problems faced by entrepreneurs?

Small Business Problems Faced By Entrepreneurs 1. Lack Of Proper Marketing. One of the major business problems faced by small businesses is lack of proper marketing. 2. Getting And Retaining Customers. He is not dependent on us. We are dependent on him. He is not an interruption in our… 3. Money …

What are the problems faced by small scale industries?

Poor industrial relations Many Small Scale Industries are not able to match the pay and benefits offered by large enterprises, because their revenues and profitability are low and also uncertain. This leads to labor problems. Employees fight for higher wages and benefits which the SSI is not able to provide.

Why are small scale industries not able to penetrate foreign markets?

Small Scale Industries are not able to penetrate foreign markets because of their poor quality and lack of cost competitiveness. In countries like Taiwan, Japan etc. products produced by Small Scale Industries are exported to many foreign countries.

Why do new entrepreneurs fail?

The challenge: One of the biggest reasons for the failure of new entrepreneurs is selection of the wrong niche. The solution: It’s very common that being a newcomer in the entrepreneurial world, you may not have the adequate expertise to select a profitable niche. 

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