This paper examines the problems of quality management faced by entrepreneurs of Small and Medium Enterprises (SMEs) by analyzing a sample of 350 entrepreneurs selected from five states in Northern India. Using factor analytical technique, the various problems relating to quality management are reduced to five factors. These are problem of application of human resource practices, difficulty in adopting acceptable quality standard, work overload, lack of joint planning, and lack of financial resources. Then, one-way and two-way Analysis of Variance (ANOVA) technique is applied to find significant difference in the age and education of the entrepreneurs for various problems that emerged from factor solution. Based on the results of the study the following are suggested: The entrepreneurs should go for regular training programs in the area of quality management in addition to other areas of management. Institutions involved in entrepreneurship development should lay more emphasis on this emerging area. Government should provide long-term financial resources through better banking system at lower rates to facilitate adoption of quality management. There should be constant interaction between the industrial organizations of large, medium and small enterprises.

Industrialization is considered as the backbone of a country. The economic development and growth of a nation largely rely on industrialization. It is an effective instrument to increase the production, national income and living standard of a country. It helps in solving the problems of poverty, insecurity, unemployment, alienation and over population, which destroy the vitals of underdeveloped and developing countries. Science, technology and industrialization are indispensable to a country’s development.

It is generally observed that per capita income and degree of industrialization are two sides of the same coin. In a country or society, economic development involves a transition from agricultural dominance to industrial dominance. It is a matter of common observation that countries with low per capita income are industrially backward, and the countries where per capita income has increased, the proportion of labor employed in industries is more in comparison to agriculture. The process of industrialization is not confined to the manufacturing industry alone, rather it is a process through which the entire economy’s structure undergoes a change in its various aspects. It provides job opportunities to many unemployed people in underdeveloped and developing countries like India.

Entrepreneurship Development Journal, Problems, Quality, Management, Small, Medium, Enterprises, Factor, Analytical Study.