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Published 05 Aug, 2007 12:00am

Micro units not ready to trade stability for democracy

KARACHI: People running micro businesses in Karachi appear least bothered regarding the form of the government. They are more interested in making their business successful.

They, however, get nervous if law and order situation deteriorates as that hits their business directly.

They were found in a survey to be indifferent towards the nature of regime as their activities stay smooth and undisturbed in every system except in bad law and order situation.

This is, however, in contrast to the developed economies where even at micro-level businesses reacts to policies and measures the governments pursue and modify their business behaviour accordingly.

According to a rough idea the micro businesses in Pakistan involved in retail trade to manufacturing of various goods at very small scale are providing livelihood to about 80 per cent of entire population.

They, however, are of the view that during the present mixed setup (military-political) the economic indicators have shown improvement over last years, yet the gap between the rich and poor has widened sharply despite high economic growth.

“Certainly a peaceful environment helps promote businesses, besides ensuring smooth sailing as it indicates harmony in all segments of society, which is a symbol of stability essential for business development at the micro level,” responded Haider Ali, a small vendor of unbranded generators in North Nazimabad Town.

He said that doing business at very small scale carried less risk and offered better chances of success because it is not confronted with the highly cumbersome rules and harsh conditions issued by the government from time to time to regulate big businesses which are usually involved in bad practices of evading tax and stealing power, gas and water.

Answering a question he said that his business had been growing since its inception and had weathered martial law and democratic rules and the present mixed setup and now it had achieved stability.

He said with the growth in population and rising demand for generators owing to faulty electricity supply had given a chance to this industry even at the micro level to grow, which was evident from increase in sales.

“I don’t think that the civilian rule offers better environment for business growth. Contrary to this in political governments the level of corruption rises and the concentration of rulers confine to serve their own vested interests,” he said hastily.

All over the world the democratic setups were considered good as a whole and for economy and business in particular but in case of Pakistan it would not work due to insincerity of politicians, he remarked.

Muhammad Naeem, owner of a small book printing house, said that frankly speaking it did not matter who was ruling the country but whether the government was able to protect the life and property did impact business activities as violent strikes and protests generally target small businesses causing them massive losses.

He said that the present setup was good for the economy and especially for small businesses as during this regime except some suicide attacks recently, the general law and order situation had been satisfactory. They did not have to keep their shops closed owing to strike calls, which were the hallmark of political setups in Pakistan.

“I am not in favour President Musharraf or any other politician but a government which can ensure smooth running of businesses is always welcomed by the business community, particularly micro businesses which directly impacted by violence and violent protest rallies,” he remarked.

He said definitely over the last few years the business environment had shown an improvement, which was reflected in rising investment in small businesses like printing, book binding, stationery etc.

Mr Imran, owner of a hair-dresser shop, looks highly optimistic about his future business prospects as he believes business usually records growth in the autocratic rules rather than the democratic government. He says that law and order situation generally remained under control during the military regime and that matters most for the daily business.

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