Generally, business is an institution organized and operated to provide goods and services to society under the incentive of gain. Small-scale enterprise is a business that is smaller in size. Small businesses are either services or retail operations like grocery stores, medical stores, tradespeople, bakeries and small manufacturing units.
Here describe problems in coordination among the institutes or agencies involved in small enterprise development in developing countries.
Lack of finance – This including weak equity base, poor utilization of assets, inefficient working capital management, an absence of costing and pricing, an absence of planning and budgeting and inappropriate utilization or diversion of funds.
Bad production Policies – The another important reason for sickness is a wrong selection of site, which is related to production, inappropriate plant and machinery, bad maintenance of plant, lack of quality control and so on.
Marketing and sickness – This is another part which always affects the health of any sector as well as SSI. This including wrong demand forecasting, selection of appropriate product mix, an absence of product planning, wrong market research method and bad sales promotions.
Inappropriate Personnel Management – Another internal reason for the sickness of SSI is Inappropriate Personnel Management politics which includes bad wages and salary administration, bad labour relation etc.
Ineffective Corporate Management – Another reason is Ineffective Corporate which includes improper corporate planning, lack of integrity in for management, Lack of coordination and control etc.
Small businesses are independently owned organizations that require less capital and fewer workforces and less or no machinery. It is independently owned and operated and is not dominant in its field of operation.