Abstract
This paper reviews the promotion of small scale and cottage industries (SSCI) in Indonesia and its impact on employment creation. The review was conducted for the province of Central Java, the ‘heartland’ of SSCI employment. Secondary data showed that participation rates in technical and financial assistance programs for SSCI are low, suggesting that programs may continue for many years before a majority of SSCI producers are reached. A field survey in six clusters of SSCI investigated the effectiveness of current programs to enhance the development of these industries. The analysis provides little evidence that the programs have a positive impact on employment in the less dynamic clusters of SSCI. In the very dynamic clusters, firms using a combination of technical and financial assistance were most successful in terms of employment generation. The study concludes that present assistance programs are not a ‘cause’ of employment growth in SSCI, but are accommodating such growth.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
