You can find lots of articles at the
CGAP Microfinance Library, e.g., under
Business Development Topics.
Industry Growth, Firm Size and the Business EnvironmentSep 2008, Ayyagari, M. & Maksimovic, V.
Impact of an enabling environment on microenterprise growth
This paper examines the effect of firm dynamism factors, such as entry regulations and protection of property rights, on the growth of small firm-dominated industries. It analyzes cross-firm, cross-industry effects of the broad business environment on small firm growth. The paper also explores the possibility that industries composed of small firms grow faster than industries dominated by large firms in economies with well developed business environments..
The study uses a sample comprising twenty seven industries in the manufacturing sector from 100 countries. Findings include:
- Effect of business environment on small firm dominated industries varies across country income groups;
- Employment regulations and investor protection regulations matter the most in low-income countries;
- Export and import related regulations are particularly important for middle-income countries;
- No evidence of a disproportionate impact of the business environment on small firm dominated industries in high income countries.
The study results contribute to the policy debate on the importance of small firm growth for overall economic development. It highlights the need for removing growth constraints on small firm-dominated industries and the role that governments and aid institutions can plan in creating such an enabling environment.
Poll
