Mighty oaks from little acorns: Can microenterprise serve as the seedbed of industrialization?

  • B. Grosh and G. Somolekae (1996). World Development, 1879-1890
  • Abstract: How can microenterprises foster the development of an industrial sector featuring a dynamic medium or large enterprise sector? We propose two possible mechanisms, graduation of microenterprises and savings by microentrepreneurs. We examine the barriers to both mechanisms and reexamine policies designed to aid the sector. Projects aimed at the enterprise level are not likely to remove barriers to firms graduating or saving. Changes in macro policy may have a positive effect. Reforms of the legal and regulatory environment may be very important, and should be rethought with the mechanisms of the seedbed role specifically in mind. Copyright 1996 Elsevier Science Ltd.
  • Theme: Policy/support programmes
  • Keywords: developing world, industrial development, informal sector, microenterprise, microenterprise development, regulatory policy, small and medium-sized enterprise
  • Reference type: Journal Article
  • Geographic location: Global South
  • Quality:
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