This study aims to identify and assess the relevance of the Role of Government and Social Capital in the process of empowerment of Small Industries. To achieve the goal by taking a sample of 155 business units / entrepreneurs of small industries as the primary data in this study were purposively selected competent officials at the Office of the 12 heads of 12 districts / cities corresponding field of each task to examine the pattern of relationships among variables used research tool inferential analysis of the SEM with PLS approach. The results of this study indicate that the role of good government would increase Social Capital and Empowerment of Small Industries. the Small Industries in Southeast Sulawesi Province. This study also produced findings that to increase the presence of small industries for the better when a variable is the role of government and social capital managed optimally.