Economic development and small scale enterprises in Indonesia

The rapid economic development in Indonesia in the last two decades has increased the dualistic structure of the manufacturing sector in that country, as shown in this study. On the one side, there are a relatively small number of medium and large enterprises which are modern units of production and, on the other side of the spectrum, a large number of small enterprises which are relatively traditional. The study shows that the performance in terms of number of units, employment, value added, productivity and earnings between these two size–groups of enterprises are different.