Small and Medium Enterprises as tools in international development

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2014-05

Authors

Murphy-Pack, Hanna Marie

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Abstract

This report analyzes Small and Medium Enterprises and their use as a development tool. There is evidence to suggest that Small and Medium Enterprises can create jobs and offer wage premiums to employees. Because of these development benefits, in the last ten years, there has been a substantial industry built around supporting Small and Medium Enterprises in developing countries. The report examines the theory of change surrounding Small and Medium Enterprises and then explores the three main challenges that affect their growth and success: financing, human capital, and the enabling environment. For each challenge, the report examines how it affects Small and Medium Enterprises, solutions to the challenges, and the solutions' level of impact. Ultimately, the report offers a research agenda as well as policy recommendations for Small and Medium Enterprises in international development.

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