Leather entrepreneurs are one of the largest foreign exchange earners of our country, who unfailingly give a boost to the national economy and per capita income. Leather industry provides more employment opportunities to the backward communities. Even so, the industry is facing innumerable problems in the functional areas due to the banning of slaughtering of animals in the name of sacrifice, and safeguarding the poor that has resulted in the closure of many units in Tamil Nadu especially in Erode District. The goat skins available in Erode are considered to be of the best quality in the world. There are 62 tannery units in Erode, out of which only 42 units are functional, and the rest are closed by the pollution board due to some environmental problems. Besides, leather entrepreneurs are facing a lot of problems in the areas of production, processing, marketing, finance and personnel. This study attempted to identify the common problems faced by the leather entrepreneurs. For this purpose, data were collected through questionnaires and analyzed using Henry Garret Technique. This study identifies the most important problems in each functional area such as inadequate funds to construct water effluent treatment plants, delay in payment by the buyers, slow process in sanctioning funds by bankers, unauthorized labor absenteeism, poor quality of equipments and government restrictions.

Leather industry occupies a prominent place in the economy of the country. It is earning a valuable foreign exchange about $2 bn and providing employment to 2.5 mn persons especially to the backward community. Though the industry has expanded rapidly in different parts of the country, most of the units are in a state of decline. In any organization efficient management is inevitable. If there is a slight disorder, the whole system collapses gradually. It becomes difficult to rebuild it. The leather entrepreneurs are facing a number of problems both internally and externally. The new policies framed by the Government of India directly affect the functional areas of leather industry. In the name of holiness, some powers are trying to implement ban on slaughtering of animals totally and stringent pollution norms are being adopted by the State and Central Governments, which are directly affecting the growth and progress of leather industry. This reflects in the closure of some units and creating unemployment problems especially for semiliterate, illiterate and downtrodden communities.

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