The ultimate goal of economic development of the Philippines, almost like that of any other developing country, is a higher level of social welfare through greater productivity and more employment opportunities. This study was made primarily to portray the role of NACIDA in the development of our cottage industries as well as the underlying circumstances that retarded or delayed their development and promotion. In the preparation of this study, the writer used two methods or research namely, the historical and normative survey approach. Despite all odds and the very many problems that surround the NACIDA and all cottage industries, this writer concludes that this government entity has done its share to improve in a big way the economy of the country.