Problems and Prospects of Small-Scale Industrial Entrepreneurs: An Empirical Study in Madurai District

Abstract

Small Scale Industries (SSIs) serve as vital engines of economic growth, industrial decentralization, and employment generation in India. Despite supportive policy frameworks, grassroots entrepreneurs confront multifaceted bottlenecks spanning financial accessibility, marketing reach, infrastructural deficits, and raw material volatility. This empirical paper investigates the operational problems and growth prospects of 100 small-scale industrial entrepreneurs operating across major industrial clusters in Madurai District, Tamil Nadu. Primary data were gathered through a structured questionnaire utilizing multi-stage purposive sampling. Analytical tools include Percentage Analysis for socio-economic profiling, Henry Garrett’s Ranking Technique to prioritize operational bottlenecks, and Chi-Square () Tests to test associations between demographic characteristics and entrepreneurial challenges. The findings demonstrate that delayed payments, credit access barriers, and acute scarcity of skilled technical labor constitute the primary impediments. Strategic interventions—including localized institutional financing mechanisms, cluster-level common testing and tooling facilities, and digital supply chain linkages—are outlined to foster sustainable entrepreneurial resilience.