Dennis Anderson,

Small industry in developing countries: A discussion of issues,

World Development,
Volume 10, Issue 11,
1982,
Pages 913-948,
ISSN 0305-750X,
https://doi.org/10.1016/0305-750X(82)90034-1.
(http://www.sciencedirect.com/science/article/pii/0305750X82900341)
Abstract: This paper first examines the changing size distribution of industry in
developing countries by region and over time, and, by reference to firm-level
surveys, it discusses the underlying causes. The importance of markets generated by
the growth of agriculture and rural incomes for the regional development of
industry, both small- and large-scale, is noted. Second, it discusses the
entrepreneurship issue, arguing that while small and largefirms alike are highly
responsive to the growth of markets, the measured entrepreneurial response is
neither as full nor as efficient as is desirable. The third and last part discusses
small industry programmes and their relation to development policy. Financing and
extension programmes are considered in detail, and there is a discussion of the
risks involved. Some parallels with agricultural credit are discussed, in
particular the default problem and the problems associated with concessionary
finance. It is also argued that small industries - and, by implication, the
programmes intended to support them - would stand to benefit from more efficient
(and also more labour-demanding) policies towards agriculture and industry.