Development of models to predict the stage of sickness of ssi units and to select strategies for overcoming sickness

Abstract

Small Scale Industries play a major role in the economic development of the nation Though the Government of India and State Governments assist SSI units in many ways they still suffer with lot of problems The problems persist across all the types of SSIs The sickness in SSIs arise mainly because of improper handling of problems and wrong decision making by the entrepreneurs This present study has been conducted among the small scale power loom units of Erode District of Tamilnadu This study aims at developing models to identify the stage of sickness and also to take appropriate decisions to overcome sickness Four models have been developed in this context The first two models assist in classifying power loom units into good or sick or incipient sick groups based on the stage of sickness The first model has been developed to accept data from the financial statements of the industrial units The second model has been developed for organisations that do not maintain proper financial statements This model rather uses the perceptional data from the entrepreneurs of the units to identify sickness These two models are based on discriminant analysis methodology