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Small-Scale Industry in Malawi

Published online by Cambridge University Press:  11 November 2008

Wim Ettema
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Extract

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.

Type
Articles
Information
The Journal of Modern African Studies , Volume 22 , Issue 3 , September 1984 , pp. 487 - 510
Copyright
Copyright © Cambridge University Press 1984

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References

page 487 note 1 International Labour Office, Employment, Incomes and Equality (Geneva, 1972), p. 503.Google Scholar

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page 488 note 1 Malawi Government, Office of the President and Cabinet, Economic Planning Division, Statement of Development Policy, 1971–1980 (Zomba, 1971), p. 77.Google Scholar

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page 489 note 1 Marsh, Catherine, The Survey Method (London, 1982), p. 54.Google Scholar

page 489 note 2 Bromley, Ray, ‘The Urban Informal Sector: why is it worth discussing?’, in Bromley, (ed.), The Urban Informal Sector (Oxford, 1979), p. 1034.Google Scholar

page 489 note 3 Malawi Government, National Statiscial Office, Malawi Population Gensus, 1977. Final Report (Zomba, 1980), Vol. II, Table 4.5, p. 191.Google Scholar

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page 493 note 1 National Sample Survey of Agriculture, 1980/81.

page 497 note 1 Most recently by Christiansen, Robert E. and Kydd, Jonathan G., ‘The Return of Malawian Labour from South Africa and Zimbabwe’, in The Journal of Modern African Studies (Cambridge), 21, 2, 06, pp. 311–26.Google Scholar

page 497 note 2 Malawi Population Census, 1977. Final Report, Vol. I, Table 5.2, p. 228, and Vol. II, Table 4.8, p. 316.

page 501 note 1 It should be noted that the computer processed data for only up to four employees, and that only one-third of the tailors were interviewed. However, since so few businesses in the sample employ more than five persons, and since the tailors employ fewer than average number of workers, both tendencies cancel each other out. Thus the real average number of employes per business comes to 0.39-an almost identical figure.

page 502 note 1 Malawi Statistical Yearbook, 1980, p. 60.

page 507 note 1 GITEC Consult Gmb H, ‘Technical Assistance to the SEDOM, Inception Report’, 1982, p. 8.

page 507 note 2 Malawi Statistical Yearbook, 1980, p. 56.

page 507 note 3 Byerlee, Derek, Eicher, Carl K., Liedholm, Carl, and Spencer, Dunstan S., Rural Employment in Tropical Africa: summary of findings (East Lansing, 1977), African Rural Economy Working Paper No. 20, p. 85.Google Scholar

page 508 note 1 Ibid. p. 87.

page 509 note 1 McKendry, John, ‘The Development of the Craft Industry of Malawi. Recommendations’, Blantyre, 1982, p. 3.Google Scholar

page 509 note 2 Stockland, Jonathan, ‘Export Prospects for Malawi Handicrafts in the European Community’, London, 1976;Google ScholarBone, Thomas, ‘Report on the Survey of the Crafts of Malawi’, London, 1977;Google Scholar and McKendry, John, ‘Survey of Craft Production in the Northern, Central, and Southern Regions of Malawi’, Blantyre, 1981.Google Scholar