An economic and social impact analysis of small industry promotion: A Philippine experience

Small-scale industry (SI) promotion became a prominent policy instrument in developing countries during the 1970s and will probably maintain such a position in the 1980s. In the Philippines, a major SI promotion program was initiated in 1974 by the Ministry of Industry. This paper attempts to evaluate the impact of SI promotion on various aspects of economic and social development. The results of the analysis seem to lend credence to the policy of fostering small enterprises. Although some of the popular claims about the contribution of small enterprises to development may be overstated, there is some indication that public policy support for small industry development in the provinces is worthwhile because it apparently has an impact on socioeconomic concerns.