The challenges cited by Drs Mishra & Deshmukh are valid & well-known. The small scale manufacturing sector is not homogenous an empirical categorization could be: the micro sector with turnover of up to Rs 2 crore and small scale with turnover of over Rs 2crpre.Our survey of 300 units covering both types in 5 geographical locations indincates that micro units are not outward looking, have little exposure to contemporary technological developments, including through internet etc.The small scale sector lacks knowledge and importance of Intellectual Property and of technological sources of knowledge even within the country.These limit their competitiveness and hence sustainability.