gender differential paper IJCRB

ijcrb.webs.com
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS
JUNE 2011
VOL 3, NO 2
government was also not serious for industrialization. The situation of SMEs is one of a rather
loose integration within the mainstream of the national economy. Many recent studies
undertaken by local & international agencies indicate that although SMEs display the potential
for expansion, but numerous hurdles were present in the sector. In Pakistan as in other countries
the recognition is growing that small scale industries are important for the development of social
and economic sectors. However in spite of the growth of this awareness not much attention was
paid to this sector. “Research has revealed that nothing contributes more to the flourishing of
small enterprises than the favorable policy context” (Anderson, 2000). This is totally lacking in
Pakistan and reflects apathy to one of the most potential sector of the economy (Bangash,
Shafiquallah, Amjad and Shehla, 1995; Burstiner, 1979).
Pakistan’s comparative advantage was the skill that its people had in many fields of small &
cottage industry. It people were famous for hand crafted products whether in metal, woolen,
cotton and wood work. But this comparative advantage over time fritted away & was not
exploited or developed (Khan, 2003). There was no tradition of institution building. No guilds
and associations that would foster the skill and pass it on to the next generation have developed.
There were no laws requiring the skill or recognition of skill, hence the national industrial
development suffered.
Pakistan’s economic development policies favored capital-intensive technology choices,
ignoring the fact it would create unemployment. Even the subsidized credits for small enterprises
stimulated more capital-intensive technologies (Nizamani, 2000). This situation is further
compounded by the fact that Pakistan ranks relatively low among other Asian Countries in such
areas as per capita number of science & technology personnel and low on R&D (Khan, 2003).
Considerable work was undertaken on Small Enterprises (SEs) in 1990s by UNDP, who
allocated research projects on SEs & Micro enterprises to UNIDO and ILO. Similarly a World
Bank funding research was undertaken by the Institute of Social Studies Advisory Services for
Bankers Equity. The Donors Coordination Group on promotion of the SEs set up in 1993
organized a series of activities for SEs promotion (Bangash, Shafiquallah, Amjad and Shehla,
1995). A series of measures were intended under the Eight Five Year Plan (1993-98) to stimulate
the growth of SE sector focusing on improving their productivity and enhancing product quality
and standards through training in vocational & technical skills and up gradation of technology
and modernization. The impetus to the SE sector came from this new focus, which culminated in
the Government’s decision to set up another Small Industries Development Organization (SIDO)
in October 1998 called SMEDA- Small & Medium Enterprises Development Authority. Now the
SMEDA has introduced its own policy for SMEs in 2002, to introduce the structural change in
this sector (Khan, 2003).
2. Problem Statement
At the time of partition in 1947, there were few industries in the newly established Pakistan, but
particularly in Khyber Pakhtunkhwa. There was no single industry. So the Government of
Pakistan faced a lot that how to industrialize this newly created under-developed part of the
country. In this regard, the Government established “Small Industries Corporation” for the whole
West Pakistan to develop and promote the cottage and small industries, to create skilled labor, to
reduce the rate of un-employment and to feed the new coming industrial units. This corporation
COPY RIGHT © 2011 Institute of Interdisciplinary Business Research 269