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Big Questions about Small Firms

In: The Age of Productivity

Author

Listed:
  • Carmen Pagés

    (Inter-American Development Bank)

Abstract

Latin America has many small firms, and many of these suffer from low productivity. Governments in the region have increasingly invested in policies to support micro-, small, and medium enterprises (SMEs). The justification for these policies has been that SMEs face extraordinary challenges that hinder their productivity and growth, and thus their potential to provide jobs and incomes for vast segments of the population. However, despite the enthusiasm with which SME policies are often promoted, little is known about their effectiveness or impact. This chapter provides a framework for analyzing the rationale and potential impact of SME policies on both firm performance and aggregate productivity.

Suggested Citation

  • Carmen Pagés, 2010. "Big Questions about Small Firms," Palgrave Macmillan Books, in: Carmen Pagés (ed.), The Age of Productivity, chapter 9, pages 207-222, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-10761-8_9
    DOI: 10.1057/9780230107618_9
    as

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