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Use of outdated technology is often stated as serious lacunae in the
case of small industries, resulting in low productivity and
uneconomical production.
(ix) Sickness:
Prevalence of sickness in small industries has become a point of
worry to both the policy makers and the entrepreneurs. The causes of
sickness are both internal and external.
Internal problems include lack of skilled and trained labor and
managerial and marketing skills. Some of the external problems
include delayed payment, shortage of working capital, inadequate
loans and lack of demand for their products.
(x) Global competition:
Apart from the problems stated above small businesses are not
without fears, especially in the present context of liberalization,
privatization and globalization (LPG) policies being followed by several
countries across the world.

GOVERNMENT ASSISTANCE TO SMALL INDUSTRIES AND SMALL
BUSINESS UNITS

A. INSTITUTIONAL SUPPORT

1. National Bank for Agriculture and Rural Development (NABARD) NABARD
was setup in 1982 to promote integrated rural development. Since then, it has
been adopting a multi-pronged, multi-purpose strategy for the promotion of
rural business enterprises in the country.

Apart from agriculture, it supports small industries, cottage and village

industries, and rural artisans using credit and non-credit approaches. It offers
counseling and consultancy services and organizes training and development
programmes for rural entrepreneurs.

2. The Rural Small Business Development Centre (RSBDC)

It is the first of its kind set up by the world association for small and medium
enterprises and is sponsored by NABARD. It works for the benefit of socially
and economically disadvantaged individuals and groups. It aims at providing
management and technical support to current and prospective micro and small

entrepreneurs in rural areas. .

3. National Small Industries Corporation (NSIC)