Page 295 - 9 teachers social book 9 @ 2077 ctp_Neat

industries are flourished nicely in Nepal comparing to the government owned
one. Some of the importance of cottage industries and small scale industries are
given below:

Locally available resources are optimally used using local skills and knowledge.
Such industries are operated with less capital.
They create employment opportunities even in seasonal unemployment period
in agriculture.
Such industries conserve and protect art and culture of the nation.

They help to earn foreign currencies which control trade deficit.
Such industries reduce regional deficit.
Despite these importance and benefits cottage industries and small scale industries
have many problems in Nepal. Some of them are mentioned below:
1. Lack of Capital

Though such industries are cheaper and need less investment but due to the
acute poverty it cannot be established in many areas as per requirements too.

2. Lack of Skilled Human Resources
Local skills and knowledge are required to run such industries but there is lack
of such manpower as many people are leaving the country for foreign employment.
3. Lack of Market

The goods produced from such industries do not get proper market.
4. More Expensive than Medium and Large Scale Industries

The goods produced in cottage and small scale industries are more expensive as
compared to the medium scale and large scale industries because of its less production,
manual work, etc. It even cannot maintain the quality.

5. Unstable Industrial Policy
The political instability of the country is the main reason for frequent change
in the policy of industries. This discourages the investors for investment in such
industries.

295 Dynamic Social Studies - Book IX