The objective of this research is to measure the participating of small industries on economy in Central Java Province. The participating are to absorption of manpower, contribute in PDRB, income multiplier and to estimate the model about relationship between many firms and value of products with many of manpower to work in small industries. The information above may be used for government as well as to policy maker and the others whose interest its. The data used in this research are annual time series of 1979 – 2002. The basic model in this research is a multiple regression that has been transformed in the logarithms model. The results on the measurement of participating of small industries in economy are : first, the absorption on manpower is low, although in quantitative increase in demand for manpower with the rising in many firms. Second, small industries contribute to PDRB still low, because the value of products is low too. Third, income multiplier of the regional small industries was be low, although this small industries are dominant on the region. Fourth, the result on estimation model show that the many firms and value of products are significant. The many firms have positive effects on the absorption man power in small industries, while the value of products have negative effects on the absorption manpower in small industries.