PJD 2017 Vol. 44 No. 2d
Enhancing the Philippine Legal, Regulatory, and Policy Framework for Distributed Energy Resources
PJD 2017 Vol. 44 No. 2c
Possible Effects of China's Belt and Road Initiative on Philippine Trade and Investments
PJD 2017 Vol. 44 No. 2b
Effect of Supply Chain Integration on Business Performance and Competitiveness of Philippine SMEs
PJD 2017 Vol. 44 No. 2a
Role of Subjective Perceptions and Migration Culture in the Formation of Migration Intentions: Evidence from a Rural Village in the Philippines
Publication Detail
ESIA-WID WP 1983-02: Small-Scale Industry Promotion: Economic and Social Impact Analysis

The end of 1960s has witnessed many developing countries with high level of unemployment and inequitable distribution of income. Several strategies have been emphasized, the most popular of which is the promotion of small-scale industries (SSE). These industries are labor-intensive and are therefore suited to labor-abundant countries such as the Philippines. It has also been argued that these improve income distribution and promote rural and regional development. This paper examines the effects of small-scale enterprises on economic and social concerns focusing on the government’s effort for its promotion and its economic and social impacts. Results indicate that while SSE’s contribution to development may have been overstated, support rendered to it is worthwhile. It has been found out that SSE has significant positive impact on employment, production, energy efficiency and income. However, its impact on health, fertility, migration and environment is difficult to determine and is therefore not conclusive.

Philippine Institute for Development Studies
Authors Keywords
Pernia, Ernesto M.; economic/development modelling; small and medium enterprises (SMEs);
Download PDF Number of Downloads
Published in 1983 and available in the PIDS Library or can be downloaded as full text Downloaded 3,162 times since November 25, 2011