(Submitted in partial fulfilment of requirement for the award of the degree of Masters of Business Administration)

I have chosen to carry out study about the operational and managerial problems being faced by small and medium scale business enterprises. Since many nations, both developed and developing have recognized the crucial importance of small and medium business as a useful source of growth and for the creation of new employment avenues on a large scale in the shortest period of time.

Small business has played an important role in Indian industry. It practically flourished in almost all corners Kolkata, Surat, Chennai, and Mumbai and penetrated into the roots of Indian soil. However, the products and services being provided by small businesses was not standardized but with highly specialized skills and opportunities, Indian products were the centre of attraction at home as well as all over the world till the arrival of industrial revolution. The drain of capital from India to Britain between 1757 and 1947 acted as major obstacle in the development of potential of small and medium industries in India. The result was that by the time India won its independence in 1947, India had lost its small and medium enterprises

COUNTRY FOCUS ON SSI

In later 19th century, developing countries like Japan could grasp the essentiality of small and medium entrepreneurs for generating economical development. Japan still relies largely on the vast network of small enterprises to cater the needs of the consumers as well as to supply components and intermediate products to the large industry.

INDUSTRIAL POLICY ON SSI, 1948

The industrial policy resolution, 1948, stated the position in the following words, Cottage and small scale industries have an important role in the national economy offering as they do, scope for individual, village or corporate enterprises and means of rehabilitation of displaced persons. These industries are particularly suited for the better utilisation of local resources and for the achievement of self sufficiency in respect of certain type of essential type of consumer goods. However since independence the government has shown concern and support for small scale industry and in 1977 the government of India established centrally sponsored scheme known as district industry centre scheme (DICs) offering comprehensive set of intensive all over the country. For the first time, an effort was made to provide all essential services to the DICs under single roof.

ERA OF INDUSTRIAL POLICY IN 80S AND 90S In the 80s substantial thrust on the enhancement on the manufacturing capacity in the industrial segment and special attention was paid to the promotion of technological excellence whereas in the 90s special attention was paid on the infrastructure facilities, modernization, up gradation of technology, improvement in productivity and accelerated development. The small business saw new policies aiming at globalization, delicensation, marketisation, so as to develop and grow with Indian economy and be a part of world economy.

PLANS ON SSIs During the last five decades, the plan outlay for SSI has risen from Rs. 52 million in the first plan (1952) to Rs 28480 Million in the 8th plan (1990-95). The number of small scale units registered as well as unregistered has shown consistent growth i.e. from 12000 units in 1947 to 2.914 million in 1997 despite the zooming mortality rate.

DEFINITION OF SMALL SCALE INDUSTRIAL UNIT

The following requirements are to be complied with, by an industrial unit to be graded as SSI unit with effect from 21/12/1999. Wherein investment in fixed asserts does not exceed Rs. 10 million, subject to the condition that the unit is not owned, controlled or a subsidiary of any other industrial unit.

SSI POLICY STATEMENT DATED AUG. 6, 1991

The primary objective of the SSI policy during the 90s was growth oriented to enable it to contribute its might fully to the economy particularly in terms of the growth of the output, employment and exports as the sector has been substantially de licensed, deregulate and de-bureaucratize with a view to remove all chains on its growth potential, reposing greater faith in small and young entrepreneurs.

PROBLEMS OF SSI
Small businesses die within one and a half year of their birth, in their infancy for the following reasons

Due to..
1.Improper planning strategies. 2.Weak financial background of entrepreneur. 3. Entrepreneur without experience of industry.

4. Lack of training, learning, technical skills and dynamism of entrepreneur in the business which he tries to carry out.
5.Entrepreneur handling the small business single handed with all responsibilities lying on one shoulder instead of being shared by more than one person with clarity and specialization. 6.Lack of market knowledge of entrepreneur

Further the entrepreneurs do not know how to overcome their sense of futility about the social problems, racial bias and environmental hurdles that come into their way. The very size of each problem makes it remote from the individual entrepreneur without guidance to the entrepreneur, How to solve it?

OBJECTIVE OF STUDY
The post liberalization economic policies have made the small and medium scale industrial sector even more weaker as the new industrial policy opened for the large enterprises even those sectors which were traditionally deserve for the small scale sector, at the same time, the concept of limited partnership and enhancement of investment limit applicable for the sector was introduced.
Thus, there is a need to study the problems of small and medium scale enterprises.

For the completion of my research I have prepared a questionnaire.