Abstract: | The following investigation examines the metal furniture manufacturing industry in India and shows that regulation aimed at protecting the small-scale sector does not provide the necessary impetus for growth and survival of small industries. Rather, such regulation provides a fertile territory for larger businesses to profit from protected markets and regulatory loopholes. A new role for state institutions is suggested in the final analysis that builds on supportive networks that migitate the disadvantages of scale, without enorous restrictions for others, and creates conditions for operations of all sizes to survive and grow. |