What is the actual and potential contribution of small and medium entrepreneurs in South and Southeast Asia to social and economic development in their countries? Which influences encourage or hinder their contributions to development? These two central questions will be investigated in the light of the activities of small and medium enterprises; in this investigation, observations relating to Asian developing countries (DCs) in general will be supplemented by an examination of the experiences gained in Indonesia and Malaysia in particular.

The study is divided into three main sections:

– Identification of the contribution towards development Assuming that the aims of the development to which the small and medium enterprises could contribute are known, the extent to which they participate in the achievement of those aims can be empirically established and described in detail.

– Determination of the factors restricting and promoting entrepreneurial contributions to development Areas of influence will be circumscribed, particularly those which hinder or promote the activities of enterprises in realizing the stated aims of development.

– Recommendations for improving the contribution towards development

Suggestions will be put forward on how the contribution to development made by small and medium entrepreneurs can be rendered more effective, with, special emphasis being placed on the possibilities of promotion by non-governmental institutions.

The investigation is confined to the manufacturing sector in view of the outstanding importance of this sector in the economic policy of developing countries. The two central questions raised will be answered with regard to this sector by way of example. The numerous and important contributions to development made by small and medium enterprises operating in the service sector (particularly in commerce and repairs enterprises), in the construction industry, and in the transport sector are not included within the scope of this study.

It is possible to define the small and medium enterprise sector within the manufacturing industry in both quantitative and qualitative terms.