Various reasons why small enterprises in Pakistan might take advantage of the working class and pay lesser wages as per my viewpoint:
1. Economic circumstances: Small enterprises may be forced to reduce expenditures, including staff compensation, due to a lack of resources and tight budgets.
2. Labor surplus: Businesses can offer lower compensation because of the competitive job market that is brought about by high unemployment rates and a huge labour pool.
3. A lack of regulations: Businesses may underpay employees as a result of lax enforcement of labour laws and minimum wage requirements.
4. Informal sector: A lot of tiny firms operate in this unregulated, unsupervised environment, which results in labour abuse.
5. Weak negotiating power: Employees in small enterprises frequently lack the ability to engage in collective bargaining, which makes it challenging to discuss raising pay or improving working conditions.