Discusses the relation between the environment in which productive activities take place and the environment in which the human resources, which undertake these activities, emerge. Deals with the integration of small industry, promotion and overall planning strategy. Focuses on the significance of small industry in Asia in comparison with more industrialized countries. Discusses the factors which determine the optimum scale of operation. Considers the role of small industry in the process of socio-economic change and the role of entrepreneurship as an agent in this process of change. Outlines a development policy for small industry development. [TAIC]