While evidence suggests that microloans are not effective in reducing poverty, providing microenterprises with larger loans may be more effective in helping them grow, reducing poverty, and increasing business opportunities for microfinance lenders.

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Small and medium enterprises (SMEs) are often important parts of developing country economies, but many programs designed to spur their growth have been unsuccessful. In Egypt, researchers offered small-scale rug manufacturers the opportunity to export to high-income countries. They found that SMEs offered export opportunities increased both their profits and product quality relative to firms in a comparison group.

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