This paper investigates the economic rationale for intervention in support of small- and medium-scale enterprises, on both theoretical and empirical grounds. It argues that the justification for SME interventions lies in market and institutional failures that bias the size distribution of firms, rather than on any inherent economic benefits provided by small firms.
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Paper provided by World Bank - International Finance Corporation in its series Papers with number
40.
Length: 25 pages Date of creation: 2000 Date of revision: Handle: RePEc:fth:wobafi:40
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Find related papers by JEL classification: L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms D40 - Microeconomics - - Market Structure and Pricing - - - General
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