 this is the concluding video of industrial sickness that is the unit 6 of business environment course of the BBA program we have already discussed about how industrial sickness can be defined, what are the internal causes, what are the external causes of industrial sickness and what will be the specific factors which will be responsible for small scale industrial units they are failure to sustain their activities ultimately reading was they are falling sick so in this third video we shall discuss the remaining learning objectives of your unit and the learning objectives that we shall take up one to explain the consequences of industrial sickness and then after identifying or explaining the consequences of industrial sickness we shall take up the other objectives that is that what measures can help in solving the problem of small business so what could be the consequences of industrial sickness if industry falls sick one industry falling sick will have the influence on its corresponding effects on its stakeholders but even number of industries in one particular industrial belt falls sick the consequences will be falling sick is not it so what could be the consequences of industrial sickness we shall discuss that part then we shall also discuss, explain the measures for solving the problem of small business as far as industrial sickness is concerned so that they can be sustainable in one of the previous unit we discussed about this the sick industrial companies special provisions act SICA SICA that was passed in 1985 and this was passed in 1985 because industrial sickness was regarded as a problem as a national level problem as a problem having serious national concern that is why this particular act with special provisions was enacted in 1985 because this act provided for speedy determination by board of experts and this board of experts BIFR board for industrial finance and reconstruction dear learners this speedy determination is very very important if an industrial unit is not determined as sick in the right time the corresponding or the cascading effects will be far far wider and much more detrimental to its stakeholders so SICA was repealed and revived and rehabilitation of sick companies are did with companies at 2013 2013 the more or less the speed is easier some other measures have been adopted so industrial sickness has been given national importance by promulgating these acts as well as modifications made these companies at 2013 because the consequences of industrial sickness are far richer far richer in terms of its negative effects in an underdeveloped labor surplus economy like India we are not right in our country it is a very labor intensive economy we are having if the industries fall sick there will be high unemployment problems so that is a big concern so industrial sickness more specially in our country though industrial sickness might happen in developed countries emerging economies developing countries everywhere but for a country like India industrial sickness is a major concern because we are basically a labor intensive economy we cannot afford to have unemployment because we are having aggravating unemployment problem and if there is aggravating employment problem what the unemployment youth will do some undesirable practices the criminal activities theft the coins all these the undesirable social things so employment should be provided in order to provide employment our industries should be sustainable at the same time if for an entrepreneur if an industry becomes sick if an enterprise becomes sick that becomes a right the entrepreneur tends to lose morale if it is successful the morale will be high and whenever an industry will get will be leading towards the sickness there will be loss of resources waste of resources money material all kinds of resources and industry is not just functioning in isolation it is also supporting some auxiliary units suppose the refinery is closed along with the refinery the truck drivers the factories the garages the canthines the security service the auxiliary units there will be closure of the auxiliary units also and that is why this incentive for that so and so has failed so I will not start up that industry like that so there are some consequences of industrial sickness and these are all very important consequences which are highly detrimental to the society which are highly detrimental to the spirit of entrepreneurship so to erase all this we are taking some corrective measures what could be the corrective measures so that industrial sickness does not take place one is short term capital should not be used for long term investment suppose a bank has given a loan for say working capital management for say some current assets but you are repelating that money for purchasing some big machinery which are big long term implications means what? your working capital problem is not addressed and that is likely to lead to some serious problems as far as your current business activities are concerned development of managerial skills the management needs to be constantly trained as far as the changes in the environment and they should be continually adapt to the environmental changes so that they can remain contemporary so that they can sustain their activities government prioritization in allocation of raw materials so that industries do not suffer because of the raw materials reduce cost of capital if the cost of capital is high the government may think about some capital subsidies so that the industries or the entrepreneurs can feel a bit relaxed a program of monitoring should be institutionalized constantly the industrial promoting organization the financial institution should constantly adapt a regulatory monitoring mechanism so that the sickness can be detected early we should not wait till the closure it should be detected early maintenance of inventories at the optimum level if we are piling up inventories means what? our working capital is blocked if we are having shortage of inventories means we will not be able to meet the requirements of the demand so optimization is very very important proactive role of IVIN promotional organization just now i talked about the industrial promoting organization small industries development bank of india like that reserve bank of india all of them should take proactive measures so these are some of the things by which the industrial sickness can be arrested they are learners you read the unit and carefully observe the points regarding the various facets of industrial sickness its consequences, its causes and what will be the measures that can be taken to address the problem of industrial sickness thank you enjoy your learning thank you