The National Cottage Industries Development Authority (NACIDA) was created in 1962 through Republic Act 3470 to organize, revive, and promote cottage industries in the Philippines. NACIDA provides assistance to cottage industry producers in areas like financing, production, marketing, product standardization, research and training. It aims to help cottage industries thrive and place producers in a position of economic security.

1. HE 214- HANDICRAFT AND COTTAGE INDUSTRIES
LARGE SCALE INDUSTRY & ROLE OF
NACIDA IN THE COTTAGE INDUSTRY
IN THE PHILIPPINES

2. INTRODUCTION: LARGE SCALE INDUSTRY
 A business can range from a single proprietor
enterprise to a large corporation which employs
thousands of workers across multiple countries.
Based on the scale of business, organizations are
classified as micro-enterprises, small-
scale enterprises, large scale industries, public
enterprises, and multinational corporations.

3. LARGE SCALE INDUSTRY (LSI)
 Large Scale Industries are
Industries which requires huge
infrastructure and manpower
with an influx of capital assets.
 The Organization for
Economic Cooperation and
Development considers any
business with 250 or more
employees to be a large-scale
enterprise.

4. LARGE SCALE INDUSTRY (LSI)
 Aside from large
number of workers, big
machineries and
capital, Large Scale
industry must have
skilled professional and
laborers as well as
National and
International Market.

5. IN PHILIPPINE CONTEXT
 In 1990, Congress enacted R.A. No. 6977, the Magna Carta for Small Enterprises. The
capitalization for a cottage enterprise was changed, viz.:
 SEC. 3. Small and Medium Enterprises as Beneficiaries. – “Small and medium enterprise”
shall be defined as any business activity or enterprise engaged in industry, agribusiness
and/or services, whether single proprietorship, cooperative, partnership or corporation
whose total assets, inclusive of those arising from loans but exclusive of the land on which
the particular business entity’s office, plant, and equipment are situated, must have value
falling under the following categories:
micro : less than P50,000
cottage : P50,001 – P500,000
small : P500,001 – P5,000,000
Medium : P5,000,001 – P20,000,000
In a generic sense, all enterprises with total assets of Five million pesos (P5,000,000) and
below shall be called small enterprises. And total assets of more than twenty million
(P20,000,000) is considered Large scale industry/enterprise.

6. ADVANTAGES OF LSI
 They provide an impetus to the industrialization of the country.
 Large scale industries, usually, produce capital and basic goods (instruments,
machines, chemicals, etc.)
 They are capable of generating funds for the research and development of
new technologies.
 Due to the large scale of operations, they have the potential to lower the cost
of goods.
 Further, they create opportunities for small-scale and cottage industries to
evolve and flourish.
 Also, the employment opportunities created by large scale industries are huge.

7. EXAMPLES OF LSI
The term ‘large-scale’ is generic in nature and includes different types of
industries.
 Iron and Steel Industry
 Automobile
 Textile Industry
 Manufacturing Industry
 Over the last two decades, Information and Technology (IT) industry has evolved
and has contributed huge revenues while creating thousands of jobs for Indians.
Hence, many economists include it in the large-scale industry sector.
 Telecom Industry

8. REFERENCES:
 https://bataspinoy.wordpress.com/2012/03/06/definition-of-cottage-industry/
 https://www.toppr.com/guides/business-environment/scales-of-business/large-
scale-industries/
 https://bizfluent.com/facts-7196662-large-small-scale-industry-definition.html
 https://www.youtube.com/watch?v=EonQ1-_co0E
 https://www.youtube.com/watch?v=udc-ekwLxJQ
 https://www.youtube.com/watch?v=-3rtRb0-7Xc

9. ROLE OF NACIDA IN THE COTTAGE
INDUSTRY IN THE PHILIPPINES
“NACIDA”
NATIONAL COTTAGE INDUSTRIES
DEVELOPMENT AUTHORITY

10. REPUBLIC ACT NO. 3470
JUNE 16, 1962
An act creating the National Cottage
Industries Development Authority (NACIDA)
under the department of commerce and
industry, prescribing its duties, powers and
functions, and appropriating funds therefor.

11. SEC. 2. THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY, SHALL PERFORM THE FOLLOWING DUTIES:
 (a) To organize, revive, encourage, and promote
the establishment of cottage industries; however,
projects for the establishment, expansion and
development of cottage industries now being
undertaken by other governmental agencies or
offices shall be transferred to the Board and the
personnel, know-how and technology from these
governmental agencies shall be absorbed by the
Board;

12. SEC. 2. THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY, SHALL PERFORM THE FOLLOWING DUTIES:
 (b) To survey and evaluate existing skills, machinery
and equipment, and raw materials available in industrial
quantities;
 (c) To promote the effective merchandising of
cottage products in domestic and foreign market so
that those engaged in such industries will be placed on
a basis of economic security and towards this end the
Board itself may, if necessary, market the cottage
products for the producers;

13. SEC. 2. THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY, SHALL PERFORM THE FOLLOWING DUTIES:
To promote the standardization of cottage
industries products, prescribe rules and
regulations governing the grading, classifying,
and inspecting of cottage industries products,
especially those for export;

14. SEC. 2. THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY, SHALL PERFORM THE FOLLOWING DUTIES:
 To extend assistance to cottage industries
producers in their problems relating to financing,
production and marketing;
 (g) To render consultation services, provide
technical know-how and field assistance to
cottage industries producers;
 (h) To undertake research and training programs
designed to improve cottage industries products;

15. SEC. 2. THE NATIONAL COTTAGE INDUSTRIES DEVELOPMENT
AUTHORITY, SHALL PERFORM THE FOLLOWING DUTIES:
 ) To administer and maintain a tool and dye
development program responsive to the
technological needs of the cottage industries; and
 (j) To adopt such measures as may be deemed
necessary and proper to carry out the purposes of
this Act.

16. REPUBLIC ACT NO. 3470
NATIONAL COTTAGE INDUSTRIES DEVELOPMENT AUTHORITY
The National Cottage Industries Development Authority is
hereby authorized to make contracts; to lease or own real and
personal property, and to sell or otherwise dispose of the same;
to sue or be sued; to prescribe such rules and regulations as are
necessary to carry out the functions vested it by this Act; to
make such expenditure to carry out the purposes and functions
of the Board; and to acquire and hold such assets resulting
directly from operations authorized by the provisions of this Act,
or as are essential or incidental to the proper conduct of such
operations.

17. PRESIDENTIAL DECREE NO. 1788
NATIONAL COTTAGE INDUSTRIES DEVELOPMENT AUTHORITY
To make or enter into contract; to lease or own real or personal property; to sell or
otherwise dispose of its real or personal property; to sue and be sued; to acquire and
hold assets of all types and kind resulting directly from operations authorized by this
Decree or as are essential or incidental to the proper conduct or such operations; to
accept donations or development aids to be used in furtherance of its objectives; to
establish subsidiary corporations and/or other institutional mechanisms deemed
necessary by the Board of Directors to attain plan objective or program priorities under
such scheme or design as it may adopt in accordance with existing laws, rules and
regulations; to make such expenditures to carry out the purposes and functions of the
NACIDA; to prescribe such rules and regulations and other issuances as are necessary to
carry out its functions vested on it by this Decree; to invest or make investments in any
financial undertaking, public or otherwise, for the purpose of enhancing the interests of
the cottage industries in general as may be deemed necessary by the Board, and all
such earnings accruing therefrom shall be held in trust for the account of NACIDA.

18. FUNCTIONS. THE NACIDA SHALL PERFORM THE FOLLOWING
FUNCTIONS AND DUTIES:
 (a) to organize, strengthen encourage and promote the
establishment of cottage industries;
 (b) to develop financial-assistance programs and funding
mechanisms for the cottage industries;
 (c) to undertake a program of development and expansion of cottage
industries nationwide particularly in less developed areas;
 (d) to plan, design and formulate viable, resource-based, low-budget,
income generating and market oriented "training-production"
livelihood projects;

19. FUNCTIONS. THE NACIDA SHALL PERFORM THE FOLLOWING
FUNCTIONS AND DUTIES:
 (e) to evolve and validate viable special projects which are employment-
generating and income-producing to be collectively managed and operated by
trainee-graduates;
 (f) to undertake industrial surveys of different crafts skills needed by industry;
 (g) to conduct field surveys of indigenous raw materials and equipment;
 (h) to initiate, and if necessary, procure certified raw materials needed for
production by cottage industries;
 (i) to help producers attain competitive footing in the market;

20. FUNCTIONS. THE NACIDA SHALL PERFORM THE FOLLOWING
FUNCTIONS AND DUTIES:
 (j) to rationalize different aspects of cottage industry operations;
 (k) to establish and develop Cottage Industries Training Centers and
undertake research and development;
 (l) to promote the quality assurance of cottage industries products;
 (m) to extend assistance to cottage industries producers in their
problems relating to financing, production and marketing; and
 (n) to work in close coordination with the private sector.

21. REFERENCES:
 https://www.officialgazette.gov.ph/1962/06/16/republic-act-no-3470/
 http://www.chanrobles.com/presidentialdecrees/presidentialdecreeno1788.h
tml#.XWATmegzbIU