Many of them however sank because their entrepreneurship did not go beyond copying the man next door who looked successful in a new venture. If some such copy cats did survive that was at the cost of the one in the market earlier. In most cases, cut throat competition led to mutual destruction. Rich to rags stories are becoming increasingly common in the small scale industrial sector. More the efforts to rescue at least some with sops, more is the incentive for another to join the race for that sop, making things more complicated for all at the end of the day.
Small industries are the backbone of the country's industrialisation.
But, encouragement to this sector has been more on the wrong side of it and definitely not for the overall benefit of the industry as a whole, not to talk about the smaller ones in it. They need more funds from the banks at lower interest rates. But, they looked for and got more tax breaks. Banks cannot lend much and at lower rates because the smaller players are not reliable by their judgement and experience. When they did not know what to do with the money they borrowed from the public, they were driven by circumstances to support more risky investments elsewhere.