Report – Small Enterprises, New Approaches: Proceedings of the Workshop "Small Scale Enterprise Development, in Search of New Dutch Approaches"

The relevance of micro and small-scale enterprises enterprises for income and employment generation and the production of basic goods and services, especially for the more vulnerable sections of society in the Third World, can hardly be overstated. Though the role of these enterprises has not always been recognized in the past and small-scale entrepreneurs were often ignored or even discriminated against in policy, the subject has increasingly received attention. Research on the subject has been intensified in the last two decades or so. A great number of studies and articles were published, devoted to various aspects of the subject ranging from more theoretical and conceptual issues to more descriptive, empirical studies and evaluation reports of projects in this field.

Consequently, at the present juncture the problem is not so much paucity of data and lack of knowledge, but rather the policy-relevant translation of available insights into realistic and operational goals, strategies and instruments for the development of micro and small-scale enterprises.

With this aim in mind the Dutch government invited Dutch as well as international experts, professionals, researchers and practitioners to discuss at this workshop policy-related issues in small and micro-scale enterprise development. A number of such initiatives were launched by the Dutch during the past five years, contributing at the one hand to a better understanding of the problem, but, on the other hand, pointing to need of changes in policies pursued so far.

Now, these efforts are expected to converge into a more concerted and consistent formulation of "New Dutch approaches" as the title of the workshop suggests. It is fair to acknowledge that, though aware of the relevance of the topic, the Dutch government till now lacked an explicit policy approach to the subject, even though development activities in the field were supported via bilateral and multilateral development cooperation. Recently, a thematic evaluation of these efforts has taken place by the Netherlands government, the UNDP (United Nations Development Programme), the ILO (International Labour Organisation) and the UNIDO (United Nations Industrial Development Organization) jointly (Development of Rural Small Industrial Enterprise, Lessons from Experience [RSIE], 1988).

This also laid the foundation for renewed efforts on the basis of a better understanding of the required policy adjustments. The 1988 study Women Entrepreneurs, Development Prospects for Women Entrepreneurs in Small and Micro Scale Industry, by the Operations Review Unit (ORU, 1988) of the Directorate General for International Cooperation (DGIS) of the Netherlands Ministry of Foreign Affairs, must be seen as a balanced argumentation for further integration of women (i.e. group) specific programmes in overall (small and micro enterprise) development programmes.

The past decade in the Netherlands, the small and micro enterprise sector has been subject of research by a large number of individuals at various universities, resulting in an increasing number of these on the role of the sector. Without denying the importance of studies and analyses made internationally, it was considered worthwile to take stock where we stand in the Netherlands, in the field of small and micro enterprise promotion.

In spite of the many studies until now, very little feedback has been provided to policy makers and politicians regarding the policies to be adopted and programmes or projects to be supported in the coming years.

By and large, it has become clear that the various ideas and theories generated in the present decade form a sufficient basis to come to a reorientation of the policies and strategies for the sector.

Therefore, the Directorate General for International Cooperation of the Netherlands Ministry of Foreign Affairs deemed it necessary to hold in depth consultations with practitioners, researchers and professionals in the field of small and micro enterprise development in order to assess the possibility to formulate new, coherent and comprehensive approaches.

A position paper based on the findings of the RSIE study was prepared by Roger Teszler and sent for comments to a selected number of Dutch experts. The outcome of that process formed the basis of the first three chapters of this book. The consultations revealed that specific attention was to be paid to six different but interrelated topics:
(i)   the role of the small and micro enterprise sector;
(ii)  the impact of macro policies;
(iii) the need for classification;
(iv)  the need for innovative financing;
(v)   the impact of group specific programmes;
(vi)  the role of donor agencies.

Leading international experts in the field were invited to submit their thoughts on the above points, which formed the basis of the chapters IV through IX of this book.

Dutch experts, professionals, policy makers and researchers active in the small and micro enterprise sector were invited by the Netherlands government to a two day workshop held in 1989 and organized by ETC foundation, Consultants for Development Programmes, where intensive debates about the position paper and the aforementioned contributions by the international experts have thrown more light on the issues under consideration. Through these discussions, of which the result formed the basis of chapter X and the concluding chapter XI, it is felt that the enhanced understanding of the problems to be tackled will lead to a more concerted and comprehensive effort by all concerned.

This book is the result of the overall process of studies, analyses, consultations and debates. It is hoped that policy makers as well as professionals will be able to draw their own independent conclusions from the thoughts presented here, and that through a concerted effort at all levels a balanced, effective and efficient impetus can be given to the promotion of sustainable economic development.