Computer technology and the small scale sector

Computer technology itself has been instrumental in promoting the growth of the small and medium-scale sector in both rich and poor countries (Pineda-Ofreneo, 1987). Changes in technology have broadened the possibilities of decentralization through:

· miniaturization of machines, as in printing and publishing;
· modularization of products, as in television;
· fragmentation of the production process, as in garments and pharmaceuticals.

This process of decentralization has been enhanced also by:

· government policies which encourage the small-scale sector as a cost effective way of creating employment;

· the increased role of new forms of investment (NFI) by multinationals in the shape of joint ventures with smaller firms, which are less encumbered by intellectual property rights.

The effects of decentralization have been complex, and in some ways contradictory, for women's employment. In the small-scale units, women more readily find jobs. Such units also offer the possibility of combining a job with the commitments of childcare. The conditions of work, however, are generally worse than those in the large-scale factories, where employees enjoy the protection of employment and labour legislation. There is hardly any monitoring of the health hazards in small scale enterprises, and the incidences of sexual harassment in community-based small-scale businesses are higher, in both high-tech and low-tech sectors (see e.g., Franzinetti, 1994). It is extremely difficult to organize workers of the small-scale units for collective action, within or outside trade unions (Mister, 1994).

On the positive side, the growth of the small-scale sector offers new openings for women. In all societies, it is rare to find a woman industrialist, but it is not difficult to locate a successful businesswoman. With the use of cheap computers in the designing stage, women in some countries have managed to carve out a niche in the fashion market, by offering diversity and flexibility in fashion and design. In the garment industry in Italy, for example, retailing companies rely heavily on local subcontractors for supplies of goods in small batches with high and varied design contents, to cope adequately with everchanging instant fashion (Pronta Moda). A sizeable number of these subcontractors are young women (Gaeta et al. 1992). Such possibilities are rarer for women in the poorer parts of the world, as the cost of acquiring computers and computer literacy is high. Also the world of business demands strategic skills that blue-collar and women workers find difficult and expensive to acquire (see Table 2.2). A progression from worker to entrepreneur thus depends on the availability of broad-based training in marketing, business and negotiation skills. It is also important for women to learn what to demand.

Even in terms of production skills, women workers of the small and medium-scale sector are often at a disadvantage. Even when women learn their experience and expertise are often undervalued by the customers. To set up as entrepreneur, women, more than men, need to convince customers of their skills.¹²

Table 2.2 Management skills in the era of new technology