1. Small enterprise as a seedbed of entrepreneurship
Seedbed refers to preparation of soil for sowing of seeds for a good crop. As small scale industries provide conductive & favourable conditions for the emergence & growth of entrepreneurship hence it is treated as a seedbed for entrepreneurship.

2. The government of India has also given an important place to small business in the framework of Indian economic planning for ideologically and economic reasons since after independence. As a result small scale industries have achieved an impressive growth in the number of units over the period of time . Small industries units need low capital investment and are labour intensive .more the small scale entrepreneurs develop more will be oppurtinies for entrepreneurial career

3. Importance of Small Scale Entreprise
Generation of employment
Self employment
Lesser capital requirement
Mobilisation of capital
Mobilisation of entrepreneurial skill
Equitable distribution of income
Balanced regional development
Saving in foreign exchange

4. Quick investment
Beneficial to large scale industries
Other benefits

5. Problems of small enterprise
Marketing problems of small enterprise
1. Poor product quality :- There are various reasons for low quality of goods
A) lack of quality consciousness
B) Dependence on manually operated machines
C) Lack of skilled workers
D) Insistence of buyers for low price
E) Lack of technical education

6. 2) Poor sales promotion : The problem arises because the small entrepreneurs lack resources and awareness about the importance of such methods .
3) Scale of production : scale of production os small entrepreneurs is low . They do not make full use of their plant and machinery under utilisation increases the cost of production the price of the product

7. 4) Lack of knowledge of marketing : They also do not posses adequate and up to date market information . They are ignorant of competitive position , consumer choices and proper markets for their products .
5) Lack of marketing opportunities : The low quality of products restricts the marketing opportunities
6) Absence of suitable marketing channel

8. Production problems of small scale industries
Maintenance of delivery schedules
Shortage of raw materials
Ignorance of scientific methods of production
Under utilisation of production capacities
Import restriction
Gestation period
Diversification of the products
Quality control
Product cost
Electricity

9. Problems related to finance
Requirement of capital and credit
Problem of producing working capital
Inappropriate financial structure
Hurdles in getting loans sanctioned
Prejudices of lending institutions
Pattern of repayment of loan
Structure of interest rate
Wrong financial planning
In proper utilisation of funds

10. Problems of human resources
Non availability of skilled manpower : An industry located in a backward area may get abundant supply of unskilled labour , but it is difficult to get skilled manpower
Labour problems : labour related problems are absenteeism , turnover , high wage rate , indiscipline , work stoppages, training cost and unionisation

11. Other problems Technological changes Land and building
Infrastructural facilities
Faulty planning
Licence system
Managerial inadequacies
Analysis of business environment
Machinery and other equipment
Lack of technological upgradation