Through play with peers, the child learns how to interact with others. At the end of this stage, the child's conscience is established. The child learns to express aggression and anger in constructive ways. Excessive punishment restricts the child's imagination and initiative. If the crisis of initiative is successfully resolved the child will have developed a sense of responsibility, dependability and self-discipline.
Industry is the ability to work and learn adult skills.
Peer interaction is very important in this stage. Children learn that they are able to make things. They develop a sense of competency and are able to master and complete tasks. Too great an emphasis on rules and regulations removes the child's natural desire to work at the expense of developing a sense of duty. The negative outcome of this stage is the possible development of a sense of inferiority.