Characteristics of Firms by Size S P Kashyap R S Tiwari Most works on village and small-scale industry treat the household industry sector as a composite category and ignore its inherent hetrogeneity. Even industry-specific enquiries fail to reveal inter-firm relationships. In this paper, the authors study inter-firm inter-dependence in the diamond polishing industry in Surat and assess how this inter-dependence affects the firms' fortunes.