SOME ADVANTAGES AND DISADVANTAGES OF SMALL SCALE INDUSTRY IN A HIGHLY INDUSTRIALIZED ECONOMY

The survival of many of the small scale manufacturers in Kalamazoo is explained in terms of the special flexibilities and opportunities they possess which enable them to isolate themselves from the competition of larger producers, and occupy a special niche in the market. Close, personal contact between the owner-manager of a small manufacturing plant and his employees, suppliers and customers enable him to give special attention when required, and also to be able to obtain good technical advice when needed. Inefficiencies resulting from a lack of specialization of personnel are in part compensated for by the costs avoided when the manager fulfills all of these functions himself.