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The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis

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  • Cravo, Tulio
  • Piza, Caio

Abstract

Interventions designed to support small and medium enterprises (SMEs) are popular among policy makers, given the role SMEs play in job creation around the world. Business support interventions in low- and middle-income countries (LMICs) are often based on the assumption that market failures and institutional constraints impede the growth of SME growth. Significant resources from governments and international organizations are directed to SMEs to maximize their socioeconomic impact. Business-support interventions in LMICs most often relate to formalization and business environments, exports, value chains and clusters, training and technical assistance, and access to credit and innovation. Very little is known about the impact of such interventions despite the abundance of resources directed to SME business-support services. This paper systematically reviews and summarizes 40 rigorous evaluations of SME-support services in LMICs and presents evidence to help inform policy debates. The study found indicative evidence that overall business-support interventions help improve firm performances and create jobs. However, little is still known about which interventions work best for SMEs and why. More rigorous impact evaluations are needed to fill the large knowledge gap in the field.

Suggested Citation

  • Cravo, Tulio & Piza, Caio, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis," IDB Publications (Working Papers) 7745, Inter-American Development Bank.
    • Handle: RePEc:idb:brikps:7745
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    Cited by:

    1. Ondřej Dvouletý & Stjepan Srhoj & Smaranda Pantea, 2021. "Public SME grants and firm performance in European Union: A systematic review of empirical evidence," Small Business Economics, Springer, vol. 57(1), pages 243-263, June.
    2. Emmy De Buck & Karin Hannes & Hans Van Remoortel & Thashlin Govender & Axel Vande Veegaete & Alfred Musekiwa & Vittoria Lutje & Margaret Cargo & Hans‐Joachim Mosler & Philippe Vandekerckhove & Taryn Y, 2016. "PROTOCOL: Approaches to Promote Handwashing and Sanitation Behaviour Change in Low‐ and Middle Income Countries: A Mixed Method Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 12(1), pages 1-46.
    3. Barki, Edgard & de Campos, José Guilherme F. & Lenz, Anna-Katharina & Kimmitt, Jonathan & Stephan, Ute & Naigeborin, Vivianne, 2020. "Support for social entrepreneurs from disadvantaged areas navigating crisis: Insights from Brazil," Journal of Business Venturing Insights, Elsevier, vol. 14(C).
    4. Emily C. Keats & Jai Das & Ayesha Siddiqua & Daina Als & Zulfiqar A. Bhutta, 2018. "PROTOCOL: Large‐scale food fortification (LSFF) efforts for improving health outcomes in low‐ and middle‐income countries: a systematic review," Campbell Systematic Reviews, John Wiley & Sons, vol. 14(1), pages 1-30.
    5. Túlio A. Cravo & Caio Piza, 2019. "The impact of business-support services on firm performance: a meta-analysis," Small Business Economics, Springer, vol. 53(3), pages 753-770, October.
    6. Yao-Chin Lin & Chun-Liang Chen & Cheng-Fu Chao & Wei-Hung Chen & Henry Pandia, 2020. "The Study of Evaluation Index of Growth Evaluation of Science and Technological Innovation Micro-Enterprises," Sustainability, MDPI, vol. 12(15), pages 1-25, August.
    7. Kanayo K. Ogujiuba & Ebenezer Olamide & Azikiwe Isaac Agholor & Estelle Boshoff & Phetole Semosa, 2022. "Impact of Government Support, Business Style, and Entrepreneurial Sustainability on Business Location of SMEs in South Africa’s Mpumalanga Province," Administrative Sciences, MDPI, vol. 12(3), pages 1-19, September.
    8. Suzuki, Aya & Igei, Kengo, 2017. "Can Efficient Provision of Business Development Services Bring Better Results for SMEs?: Evidence from a Networking Project in Thailand," Working Papers 147, JICA Research Institute.
    9. Mohammad Abir Shahid Chowdhury & Shuai Chuanmin & Marcela Sokolová & ABM Munibur Rahman & Ahsan Akbar & Zahid Ali & Muhammad Usman, 2021. "Unveiling the Nexus between Access to Electricity, Firm Size and SME’s Performance in Bangladesh: New Evidence Using PSM," Energies, MDPI, vol. 14(20), pages 1-16, October.
    10. Jaroslaw Ropega, 2020. "Novice and habitual entrepreneurs and external business support exploitation," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 18(2B), pages 271-285.
    11. Padilla-Angulo, Laura & Lasarte-López, Jesús Miguel & Pozo, Pedro Caldentey Del, 2023. "Policy evaluations of microenterprise business support services in Latin America: A systematic review," Evaluation and Program Planning, Elsevier, vol. 97(C).
    12. Hossain, Marup & Mabiso, Athur & Garbero, Alessandra, 2022. "Matching grants and economic activities among horticultural entrepreneurs: Long-term evidence from Rwanda," World Development, Elsevier, vol. 150(C).
    13. Kersten, Renate & Harms, Job & Liket, Kellie & Maas, Karen, 2017. "Small Firms, large Impact? A systematic review of the SME Finance Literature," World Development, Elsevier, vol. 97(C), pages 330-348.

    More about this item

    Keywords

    Small and Medium-Sized Enterprises; Business Support Services;

    JEL classification:

    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure
    • J48 - Labor and Demographic Economics - - Particular Labor Markets - - - Particular Labor Markets; Public Policy
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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