Sickness in Small-Scale Industries in South Punjab: Hurdles & Remedies: A Study of Bahawalpur Estate Area, Pakistan

Abstract

This study was based on in-depth exploratory investigation of Bahawalpur (Pakistan) industrial estate area to find out the internal and external root causes of sickness in small industries and their solutions. Ashraf et al.(2012) noticed reasons of meager performance of small firms as lack of managerial knowledge, high rate of interest on loans, heavy taxation,  poor government policies, owner’s education level and use of outdated technology, that’s why the most of small units have poor success and growth.  Shukla (1993) and Reddy et al. (1988) found the causes of sickness in Small Scale industry which  were generally related to production, finance, environmental,  management and  marketing  factors.  Collection of data was executed through both primary and secondary sources. Both qualitative and quantitative research methods had been used for the study. Data was primarily collected through structured questionnaires as well as interviews of owners/managers of small industrial units at Bahawalpur industrial estate area. SPSS software was used to analyze the data.  In this study we found that 76.9% units were facing energy crisis and almost all the units were also facing high Mark-up problem and Inflation problem. Other obstructions that units were facing comprising the high level of taxation, lack of education, difficulty in accessing credit, lack of market information, lack of management skills etc. which leads to low level of production and unemployment etc.

Keywords: Industrial obstructions, Remedies, low production