I - The Contribution of Small and Medium Entrepreneurs to Social and Economic Development

Summary

Towards a Definition of Desired Development Contributions

In an empirical investigation to establish and describe the actual contribution made by small and medium entrepreneurs to development, it must be known from the outset which section of the complexities of reality is to observed. Similarly, considerations about possible contributions to development presuppose the specification of what could or should be reached. It must therefore be established which values and contexts are being referred to when talking about development within a society. On analytical grounds, we propose a distinction between societal, social, and economic components.

The societal objective in many South and Southeast Asian countries – as indeed in Indonesia and Malaysia – has been determined by a fundamental political decision to strive for a parliamentary-democratic system with a mixed economy of the free enterprise type. This calls for efficient political and economic institutions as well as responsible individuals who are capable of actively organizing and operating them. Small and medium entrepreneurs can support societal development in this sense by their independent and autonomous action and activity. What is sought is a strong; dynamic, entrepreneurial middle class which is economically efficient, acts in a socially responsible manner and lends political support to the concepts of human rights and freedoms, 1iberal-democratic-social and governmental structures, and government by the rule of law.

The social objective – to set at least a minimum standard – is to ensure satisfaction of the basic material needs of the entire national population (that is, nourishment, clothing, accommodation, health care, and education). Entrepreneurs and managers in the private sector bear a social duty to contribute towards ensuring employment and income opportunities, a sufficient supply of goods, better living conditions for the work-force, their families and those otherwise concerned with the enterprise.

The economic objective is to deploy the national resources according to the principles of economics.