 Welcome learners. So today I will discuss about small enterprise and village industries. So this is my second video lecture. In my earlier video lecture I have discussed about the definition of small industries and village industries. So this unit is explained in two video lectures. After completion of each part of the video lecture you need to self check your progress and at the end of the lecture you need to participate in the discussion forum so that you can communicate with us about the level of your understanding. This part 2 deals with objectives and scope of small enterprises, role of small enterprises in economic development and problems of small scale units. Let us start. First we will discuss about the objectives of small scale industries. The basic objective of small scale industry is to generate immediate and large scale employment opportunities with relatively low investment. Then to eradicate unemployment problem from the country. As the small scale industries were more labour intensive as I have discussed earlier in my video lecture. So they creates more jobs for the youth. Then another objective is to encourage dispersal of industries to all over the country covering small towns, villages and economically backward areas. Then to bring backward areas to in the mainstream of national development. So many small scale industries were located in rural and remote areas. They were trying to uplift those areas to the mainstream areas. Then to promote balanced regional development in the whole country. Then another objective is to ensure more equitable distribution of national income. Then to encourage effective mobilization of countries untapped resources. So those resources which were not yet used like many small scale organizations. They were trying to use those resources and making the optimum use of that. Then another objective is to improve the standard of living of people in the country. Now we will discuss about the scope of small scale industries. First one is manufacturing activities. Then servicing and repairing activities. Then there are retailing activities. Then another one is financial activities. So there are many scopes lies within those industries. Then wholesale business, construction activities and infrastructural activities like transportation communication and other. Public utilities. Now we will discuss about the role of small enterprises in the economic development. The commonest definition of economic development could be an increase in real per capita income of a person resulting in improvement in the levels of living. The development of small scale industries contributes to the increase in per capita income that is economic development in various ways. It generates immediate employment opportunities with relatively low capital investment and promotes more equitable distribution of national income. It makes effective mobilization of untapped capital and human skills and leads to dispersal of manufacturing activities all over the country. It also leads to the growth of villages, small towns and regions economically logging behind. This promotes a balanced regional development. But these small scale industries despite of many scopes, they faces lots of problems. So in this section we will discuss about the problems of small scale industries. First problem is problem with the raw material. The problems of raw material may be in the areas of scarcity of raw material, then may be poor quality of raw materials and may be the cost of raw material is very high. As the small scale industries their funding capacity is very low compared to large industries, they always may not be able to get the raw materials or may be as they cannot afford to buy in higher prices, the quality of raw material which they get is low quality. But ever since the emergence of modern small scale industries, manufacturing a lot of sophisticated items, the problem of raw material has emerged as a serious problem on their production afford. Then comes the problem of finance. The problem of finance in the small scale sector is mainly due to two reasons. One is it is partly due to the scarcity of capital in the country as a whole or secondly it is partly due to the weak credit worthiness of small units in the country. Though there are many banks who are providing loans to those industries but may be because of the non submission of EMI's untimely basis and there are many factors which lies in this which creates the problem of finance for those small industries. Then problem of marketing. The small units often do not possess a marketing organization and corresponding marketing programs. In consequences their products compare unfavorably with the quality of the products of large scale industries. Unlike their big counterparts, in the large sector the small scale enterprise finding difficult to create and sustain their brands. Because their bigger organizations they always gives advertisement and they uses other promotional tools like personal selling, sales promotion, publicity. They invest so much money on advertising. The small scale industries they were not able to cope up with that. They were not able to invest more on advertising and other marketing activities because of which they faces problems in marketing. Then problems of underutilization of capacity. There are states that clearly bring out the gross underutilization of installed capacities of small scale industries. So they may have raw materials of finances but maybe because of the poor machineries or maybe because of some other reasons they cannot be able to use their capacity to the maximum level. Then there are some other problems also like technological obsolescence. As the modern machineries equipments they were much more costly. The small scale industries they were not able to purchase those and they were using the outdated technology. And as a result of that the output the production will affect. Then inadequate irregular supply of raw materials. If the raw material supply is not in a proper way or not flowing smoothly then again it will affect in the production process. Then lack of organized marketing channels. As we have already discussed that small scale industries were run by one person. So if they do not have proper structure of the channels they might face some problems in the distribution of their products and services. Then imperfect knowledge of market conditions. As there is lesser number of sales people compared to the organized sector they may face the problem of getting knowledge about the market. Then unorganized nature of operations. As small scale industries are very small in structure so they do not have proper system of organized operations. Then inadequate availability of credit facility. As large organizations gets more and more loans from different financial institutions it is not same for the case of small scale industries. Then constraint of infrastructure facilities including power etc. So as small scale industries they have lesser amount of fun. So they faces this kind of problems like problems of infrastructure development, problems of power supply and many more. Then deficient managerial and technical skills. As they were not able to recruit the best human resource for their organization. So they faces the problem of managerial deficiency and technological deficiencies also. So hope you have understood this video lecture. So here my question is mention any two objectives of small scale enterprises. Hope you have understood this video lecture. Thank you.