Thesis

The development of small-scale enterprises : a study of the agriculture-related engineering industry in Pakistan Punjab

Creator
Awarding institution
  • University of Strathclyde
Date of award
  • 1985
Thesis identifier
  • T5205
Qualification Level
Qualification Name
Department, School or Faculty
Abstract
  • This study seeks to explain the emergence, survival and growth (or decline) of the small-scale sector of the Agriculture-Related Engineering Industry (producing irrigation and cultivation products) in Pakistan Punjab during 1950-83. The two sectors of the industry (viz.,the irrigation and cultivation) are separately studied. We have identified four factors to explain the emergence, survival and growth (or decline) of small firms.These are: historical, technological, demand and economic policy. The first factor relates to a reservoir of labour with metal working experience in the Punjab, and the second to the technical possibility of separation of various processes in the manufacturing of agricultural engineering products, particularly tubewells. The other two factors, expansion of demand for agricultural engineering products and public policy, offered investment opportunities to small enterprises, and created a favourable environment which permitted diffusion of skills and technical know-how. An expanding market and the emergence of extensive vertical specialisation among small firms combined to help the enterprises overcome barriers to entry presented by integrated production. The survival of the small-scale firms among the large firms was possible because of the segmentation of the private tubewell market: the former operated in the lower end, while the later dominated the upper end. The decline of the irrigation sector small-scale enterprises in the 1970s is attributable to (1) sudden fall in demand for private tubewells and (2) the inability of small enterprises to diversify into technically superior or similar products. The cultivation sector comprised of three segments: (1) the lower segment (made up of traditional simple products) into which small-scale firms could easily enter because of the low level of technology required; (2) the middle segment which was occupied by a limited number of medium-sized firms produced simpler modern cultivation equipment; and (3) the upper segment dominated by a few large firms which produced sophisticated products. This resulted in the emergence of a pyramid like structure of the cultivation sector which was determined by the nature of the market and the technological requirements of production for different products.
Resource Type
DOI
EThOS ID
  • uk.bl.ethos.372060
Date Created
  • 1985
Former identifier
  • 991037193402996

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