This book tries to pick the actual problems in the implementation of the government's guidance to small industries. The rationale is that in the implementation of small business development for the success and failure has been experienced. Such failures, still commonly encountered inconsistencies among policy-makers, many of the patterns that technical assistance is less effective, yet effective bottom-up mechanism in the field. Particularly education and training activities much less meet the real needs of the target object in the field, the existing incentive systems are often less touching the real sector needs, there is still reluctance in most small industrial employers to make changes that are due to the modernization of cultural barriers and level of education. On the other hand a very important role of small industries. In the implementation of Indonesia's economic development, small industrial sector turned out to be high enough to contribute in the formation of Gross Domestic Product (GDP) and employment in Indonesia. Aware of the realities that exist in small industry, the government waged against the empowerment of small industries is needed.