<![CDATA[This study was evaluative in nature. The population was all the small entrepreneurs(n = 38) in the small-industrial center of foundry in Klaten regency, whoimplemented the cooperative subcontracting system. To confirm the data obtained fromthe subcontractor entrepreneurs, the researcher collected other data from six contractorentrepreneurs, using questionnaire and interview. The data were then analyzeddescriptively and presented in the form of mean score. The result of this research showedthat the capacities of the production tools used by the subcontractors were very adequate,though the foundry technology was obsolete. The preparation of the subcontractors inimplementing the cooperation was still less adequate, especially in finance and management.The level of subcontractors' entrepreneur capabilities in realizing the cooperationwas classified as high enough, and the level of constraint faced by the subcontractorsin implementing the cooperative subcontracting system was high enough,especially in the area of capital formation, supplying of raw materials and marketing.The level of contractors' involvement was classified as low, especially in terms of capitalsupport, raw material contribution, and expertise support.]]>
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