ABSTRACT
This chapter discusses the pattern of development of Small-Scale industries (SSIs) within a broader theoretical framework. It also discusses some theories identifying the overall pattern of change and development of SSIs. The chapter examines some main factors affecting the pattern. It discusses the phenomenon of people being pushed as well as pulled into SSIs, as a further exploration of the relationship between the level of real income per capita and the level of employment in SSIs through the labour market. The chapter also examines government policies which affect, directly or indirectly, the development of SSIs. SSIs are the most important rural nonfarm activities in many Less Developed Countries (LDCs). There is a growing body of empirical studies on mostly rural SSIs clusters in many LDCs. Knowing that the larger part of SSIs in LDCs are located in the rural areas, the effect of rural income increases over time on rural demand for rurally made goods is an important issue.
