What socio-economic implications Taiwan's small enterprises have in a period of great societal change ﹖ This thesis attempts to examine the function and implications of small family businesses from the angle of informal sector's theory. The finding from seven cases reveals that different from the informal secor of other developing countries, Taiwan's small family enterprises signify a much more profound and richer socioeconomic meanings, namely a way out against a worsening economic recess, a viably strategic positioning in job market, maintenance of priviliged male status while adapting to the seclining industry, supplementing income insufficiency of the formal employment, and balancing work and family while striving for economic independence. In addition, from gender's perspective, tradtitional sexual division of labor seems, on the one hand, to be reproduced and further strengthened in small family businesses, posing as a great obstacle to women who want to start up own business and seek to broaden its scale. On the other hand, small businesses, being easy entry and exit, open a route to women to challenge patriarchal institution by earning their way up to independence.