Small-scale industries (SSIs) are a significant sector of the Indian economy. The study was to examine the growth and performance of small-scale industries. The study was carried out using secondary data and a descriptive research proposal to identify the problems and remedial measures for small-scale industries in India, the data was collected from 2010–11 to 2021–22. The study reveals a disparity in industry growth and financial support in Karnataka, despite the government's liberalization of investment and industry establishment. The lack of financial support, lack of raw materials, lack of organized marketing, and additional issues in small-scale industries led to a significant variation in the number of industries, investments, and employment in these enterprises during the selected period. The results are finally there. The study reveals a positive correlation between various industries, investment, and employment in the economy, with a minimum correlation of zero and a high degree of positive correlation between employment and investment. The government should support small-scale industries (SSIs) by identifying weaker ones, providing financial assistance, and promoting their effectiveness and competitiveness in a market-based economy.