Which is NOT a characteristic of small-scale industries compared to large-scale industries?

Greater market competitiveness.

The correct answer is option 2: Greater market competitiveness.

It is believed that small-scale industries are more ‘labour intensive’ i.e., they use more labour than the large-scale industries and, therefore, generate more employment. But these industries cannot compete with the big industrial firms; it is obvious that development of small-scale industry requires them to be shielded from the large firms.