The emergence of a small‐scale engineering sector: The case of tubewell production in the Pakistan Punjab

Abstract

This article explains the emergence of a substantial‐sized small‐scale sector in an industry in which a number of large enterprises were already well established. The barrier normally set up by the requirements associated with large‐scale production was overcome by small enterprises practising vertical specialisation. The survival of the small‐scale sector was ensured by these units occupying the low‐quality, low‐price segment of the market and the large firms having access to more protected and lucrative markets.