Entrepreneurs in Small Scale Sector: A Study of Infrastructural Barriers

Abstract

Economic development of a nation mainly relies on the industrialisation. Industrialisation helps solve the various socio-economic problems encountered by the developing countries. But these economies do not have adequate resources to build a strong industrial base by setting up large scale industries. They have to depend on small scale sector for the speedy development of their economies. Moreover, they lack a strong human capital base, and whatever manpower is available in the country can be better utilised in the small scale sector. The problem of poverty, inequality and unbalanced regional development can be abridged by the expansion of small scale units. This sector contributes towards the country’s exports and helps solve the problem of balance of payments of the economy. Small scale sector maintains better rapport between the employer and the employees, thereby maintaining better industrial relations. The sector requires less capital as compare to large scale units, and unit can be started by the new generation of entrepreneurs. It can act as a nursery of entrepreneurship in the developing economies. Keeping in view the significance of small scale sector, an attempt has been made in this paper to analyse the infrastructure related problems faced by the small entrepreneurs, which become more imperative in the era of free markets, where efficiency is the way of life. This area needs intensive study because infrastructure related problems can not be tackled by individual entrepreneurs. Without strong infrastructure, the industry cannot move in the right direction. The state has to provide strong infrastructure in the form of transportation, energy, technology and financial institutions to fulfill the basic requirements of the small scale sector.