Majority of Small Units Lack Technical Know-How

A recent study published by the Society for Economic and Social Transition has revealed that the small-sized units using advanced technological tools have an edge over their counterparts that use traditional manufacturing processes.

According to the study findings, small units, which used superior technology, have shown substantial improvement in the quality of their products. However, the survey noted that nearly 85% of the registered small-scale industries (SSIs) in the country do not have access to high quality IT support.

Nearly, 46% of the survey respondents indicated a reduction in their production costs following the adoption of improved technological tools. In addition, over 20% of the units surveyed attributed the increase in their competitiveness, both on the domestic and global front, to the use of high-tech equipment and machinery.

"Adopting the right kind of technology-based products or services can help a firm to increase its efficiency, improve its production, enhance its capacity and streamline its operations. However, despite the multiple benefits of IT adoption, most SSI units are reluctant to adopt improved IT technology as purchasing these technological tools entails huge investments. Financial constraint acts as a major impediment to large-scale technological adoption in the SME sector," commented Suraj Prasad Agarwal, President of Federation of Andhra Pradesh Chambers of Commerce and Industry (FAPCCI).

Besides, most micro enterprises do not have the requisite information to select an apt technology that would aid them in enhancing their profitability. "Lack of information about the availability and usage of various technology products coupled with the reluctance of units to invest in themis responsible for the low rate of technological adoption among SSIs," commented D Bhatnagar, Director, National Packaging Company, a small-sized packaging unit in Bengaluru.

Low levels of indigenous research and development (R&D) and non-availability of technically qualified manpower to manage new technological applications were cited as additional barriers to technology adoption by the survey respondents.

For more detail on Business Directory log on to http://www.bizxchange.in

David Parks is a well known author and has written articles on Investment Guide, B2B Portal, Wholesale Products Directory, suppliers, Manufactures and many other subjects.