Lack of Education and Technical Training

Small scale and cottage Industry in Pakistan is owned, managed and operated by illiterate craftsmen and artisans. The operation of modern machinery for increasing production and reducing cost is beyond their reach. Therefore due to low savings, growth of industry is not possible.

Financial Constraints

Lack of finance is basic and major problem in the expansion and growth of small scale industry, because subsistence level units are not capable of savings. On the other hand they are not able to fulfil the requirements of loan sanctioning authorities. Therefore, they remain with shortage of capital and cannot improve their trade.