Small-scale industry in Malawi

Type Journal Article - The Journal of Modern African Studies
Title Small-scale industry in Malawi
Author(s)
Volume 22
Issue 03
Publication (Day/Month/Year) 1984
Page numbers 487-510
URL http://journals.cambridge.org/action/displayAbstract?fromPage=online&aid=2566312&fileId=S0022278X000​55142
Abstract
Interest in the real potential of small-scale enterprise dates from the early 1970s, when it was gradually realised that the industrialisation policies pursed by many developing countries would not be able to create enough employment. It was observed, moreover, that a large part of the active population was engaged in petty trade and crafts, particularly in urban centres. Thus, in addition to the modern, ‘formal’ type of economic activity, an ‘informal’ sector was identified with the following distinctive features: (1) The production processes are labour-intensive, based on simple technology. (2) The smallness of the various industries enables their owners to work as managers as well as producers, and to have direct contact with their employees, while some relationships may be based on non-economic considerations. (3) The enterprises often break the law — that is, they seldom adhere to legally fixed minimum wages, they frequently neglect to observe safety and other regulations, and they tend to evade registration and tax obligations.

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