
Household economy 255
indeed sometimes flourished, for example in the metal industries of Birm-
ingham and the Black Country, the hosiery trades of the Midlands, and
themyriad consumer industries ranging from furniture and shoe manu-
facturing to the tobacco and food industries (Berg 1994).
Experts on industrial organisation have pointed out that small-scale
production units can offset diseconomies of scale by being flexible and
responsive, producing high quality, and networking among themselves
(Piore and Sable 1984; Best 1990). Producing households that employed
resident servants and kin were particularly well placed to develop these
competitive advantages. Resident servants were available for work twenty-
four hours of the day, facilitating fast responses to orders. Apprentices
and kin-workers who had often been trained within the household had
reliable skills. Quality was relatively easily monitored.
Recent discussions have highlighted the importance of trust in facil-
itating economic co-operation, which, while mutually advantageous, is
threatened by the ability of individuals to renege on prior agreements
about the divisions of rewards and responsibilities. Household-based pro-
duction units, especially if they employed kin, provided trustful environ-
ments. Kinship ties represented networks of relationships within which
disputes could be mediated, settlements negotiated and, in the last resort,
multi-sided punishments in the form of social and economic shunning
threatened, without the costs of calling in exogenous authorities. The
on-going kinship relation held both master and man to the implicit em-
ployment contract and so ensured co-operation, which, while efficient,
could not be maintained by a solely market relationship. This was prob-
ably particularly important in the small-scale sector, where liquidity was
short and payments often had to be postponed until the contract was
fulfilled. The frequency with which journeymen sought out relatives as
masters or co-workers suggests the importance of trust in economic ex-
change, especially in contexts (small-scale sector, early industrialisation)
when contracting was not routine. Family businesses, which took in kin as
servants, could continue to benefit from co-residence without sacrificing
household intimacy. Moreover business networks across firms, important
in sustaining and initiating enterprise, were built on kinship as well as
community links (Pearson and Richardson 2001).
Thus the persistence of small and micro enterprise provided a niche
for household production, co-residence and kin-service. But in turn these
features also actively contributed to the resilience of the small-firm sector.
Household production units shaded imperceptibly into self-employed
households. Ubiquitous in industrialising Britain, they provided another
niche for household-based economic co-operation. In the countryside
every village had its blacksmith, carpenter and butcher and such house-
holds were multiplied in the towns and cities and augmented by masons,
bricklayers, plumbers, glaziers and all the myriad trades represented in
thecensus listing of occupations.
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