Tuesday, January 11, 2011

Cottage and Small Scale Industries

A cottage industry is a small industrial unit in which the owner and his or her family work themselves and no hired labor is employed. Craftsmen and artisans have established such unites as a means of earning on a full time or part time basis. A small scale industry is one in which the fixed capital investment is below Rs 2 million.
Cottage and small scale industries have played, and are destined to play, an important roe in a country like Pakistan where the majority of the people live in rural areas. Cottage and small scale industries provide employment to more than 80 percent of the industrial labor force. At the same time, however, the share of cottage industries in country GDP is only 5 percent. Cottage industries will continue to be a dynamic part of Pakistan's economy because,

1-There is little capital for large scale industries and, although they are expanding they are not yet in position to meet all the demands of the industrial goods market.

2-Because of increasing automation in large scale industries and the continuing labor problem, many workers will continue set up their own cottage industries.

3-In areas where the infrastructure is not adequate to support large scale industries, the setting up of cottage industries would provide income for the local populace and provide jobs for those who are affected by seasonal unemployment.

The setting up of cottage industries in rural areas will help to reduce the migration of workers from rural to urban areas. Many by product of large scale industries can also utilized by small scale industries.
Recognizing the importance of such industries, the government set up the Small Industries Corporation. The Corporation provides technical and financial assistance to cottage and small scale industries. It has also developed training facilities for tartisans and technicians at various centers. Small industrial estates have been established in number of places, including Sukkur, Larkana, Hyderabad, Gujrawala, Sialkot, Peshawar, Mardan and Quetta. The Corporation also provides facilities to small industries.
Despite government assistance, small industries face a number of serious problems,

1- the high cost of production
2-lack of standardization
3-small power supply
4-dearth of raw materials
5-inadequate credit facilities
6-lack of proper marketing facilities

A web of cottage industries have developed in Pakistan. Blacksmiths and carpenters have played a crucial role by making and repairing agricultural implements. Carpenters also make furniture, doors, windows, utensils. Potters make ceramic dishes which are used in rural areas for cooking. In larger villages, small scale industries include flour mills, rice-husking, oil-seeds milling, shoe making, weaving, dyeing, printing, tailoring. Most of the products of these small scale or cottage industries are consumed locally. Some items are produced for export, like sports goods, surgical equipment, cutlery, handicrafts, carpets, garments and hosiery.
Sialkot in Punjab has emerged as a major center for the sports goods industry. The export of sports goods increased from Rs 30 million in 1969-70 to Rs 14457 million in 1999-2000. Sialkot, along with Lahore, is also well known for the manufacture and export of surgical equipment. Surgical instruments to the value of Rs 6621 million were exported in 1999-2000. Again, Sialkot, along with Karachi, is well known for cutlery manufacture, other cities that have earned a reputation for their general engineering industries include Gujranwala, Gujrat, Wazirabad, Lahore, Faisalabad, Hyderabad, Karachi. They manufacture a number of products, including machines, diesel engines, steel re rolling mills, road rollers, pumps, cable wires, electric furnaces, agricultural implements.
Embroidery and fancy needlework are done at a number of places like Karachi, Hyderabad, Multan, Quetta, Bahawalpur, Lahore. Rawalpindi and Karachi are famous for their embroidered footwear. Carved wooden items and articles in ivory and brass are made in Karachi. Peshawar, Lahore, Dera Ghazi Khan, Gujrat and Chiniot. These articles find a good export market in the United States and Europe.

1 comments:

Donna Parson said...

Very informative, detailed, and well explained post. Accuracy and stability are for me the most important thing with regards to industrial scale.

parsondonna

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