The mortality of the MSE units is high. This has wider implications including locking of funds of the lending institutions, loss of scarce material resources and loss of employment. As on March 2011, the number of units identified as potentially viable as a percentage to total sick MSE units is around 8.
The units placed under nursing as a proportion to the total number of sick units stood at 5.22%.The causes of sickness are both internal and external. The major causes are limited financial resources, lack of organisational, financial and management skills and expertise, non-availability of power supply shortage of raw materials, marketing difficulties, delayed and inadequate credit, obsolete technology, inadequate infrastructure, etc.