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Small Firm Growth in Developing Countries

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  • Nichter, Simeon
  • Goldmark, Lara
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    Abstract

    Summary Although the vast majority of small firms in developing countries never expand beyond a few employees, some experience rapid and substantial growth. This study explores factors associated with small firm growth. We discuss key findings for four types of factors: (1) individual entrepreneur characteristics; (2) firm characteristics; (3) relational factors (such as social networks or value chains); and (4) contextual factors (such as the business environment). We conclude by suggesting implications for development practitioners.

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    Bibliographic Info

    Article provided by Elsevier in its journal World Development.

    Volume (Year): 37 (2009)
    Issue (Month): 9 (September)
    Pages: 1453-1464

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    Handle: RePEc:eee:wdevel:v:37:y:2009:i:9:p:1453-1464

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    Web page: http://www.elsevier.com/locate/worlddev

    Related research

    Keywords: microenterprise small firm entrepreneur growth value chains business environment;

    References

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    Cited by:
    1. Grimm, M. & Knorringa, P. & Lay, J., 2012. "Constrained gazelles. High potentials in West Africa’s informal economy," ISS Working Papers - General Series 537, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
    2. Andres Jung & Cecilia Plottier, 2011. "Firm growth in a regional trade integration context," ERSA conference papers ersa11p1502, European Regional Science Association.
    3. Martijn Boermans & Daan Willebrands, 2012. "Financial constraints, risk taking and firm performance: Recent evidence from microfinance clients in Tanzania," DNB Working Papers 358, Netherlands Central Bank, Research Department.
    4. Peters, Jörg & Vance, Colin & Harsdorff, Marek, 2011. "Grid Extension in Rural Benin: Micro-Manufacturers and the Electrification Trap," World Development, Elsevier, vol. 39(5), pages 773-783, May.
    5. Parinduri, Rasyad, 2012. "The effects of owners' family hardship on micro and small firms' growth: an evidence from Indonesia," MPRA Paper 39039, University Library of Munich, Germany.
    6. Gulyani, Sumila & Talukdar, Debabrata, 2010. "Inside Informality: The Links Between Poverty, Microenterprises, and Living Conditions in Nairobi's Slums," World Development, Elsevier, vol. 38(12), pages 1710-1726, December.
    7. Nordman, Christophe Jalil & Vaillant, Julia, 2014. "Inputs, Gender Roles or Sharing Norms? Assessing the Gender Performance Gap Among Informal Entrepreneurs in Madagascar," IZA Discussion Papers 8046, Institute for the Study of Labor (IZA).
    8. Webb, Justin W. & Bruton, Garry D. & Tihanyi, Laszlo & Ireland, R. Duane, 2013. "Research on entrepreneurship in the informal economy: Framing a research agenda," Journal of Business Venturing, Elsevier, vol. 28(5), pages 598-614.
    9. Rijkers, Bob & Söderbom, Måns & Loening, Josef L., 2010. "A Rural-Urban Comparison of Manufacturing Enterprise Performance in Ethiopia," World Development, Elsevier, vol. 38(9), pages 1278-1296, September.
    10. Govori, Arbiana, 2013. "Analysis of external factors affecting the development of SMEs in Kosovo," MPRA Paper 47230, University Library of Munich, Germany.

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