This study examines methods of identifying microenterprises with higher growth potential in developing countries. Researchers surveyed 335 small businesses in Ghana, invited them to participate in a business plan competition, and then tested whether business plan competition judges or survey instruments were better able to identify firms that would grow faster.
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Youth unemployment is a major challenge in many low-income countries, and evidence suggests young women in urban areas are disproportionately affected. This study in Kenya evaluates the Girls Empowered by Microfranchising program, which connects unemployed participants with local business franchisors and provides mentoring and startup capital for participants to launch businesses.

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Many governments and organizations use finance and management training as a tool to promote small and medium enterprise growth in developing countries, but it is not clear if or how information from these trainings is shared across SMEs operating in the same area.  Researchers are evaluating the extent to which firms share information acquired in business skills training programs to assess whether networks of small businesses act as partners or competitors, and by extension, whether such trai

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Improving access to credit is thought to help small- and medium- sized businesses participate in international trade, but existing evidence on the link between financing and exportation is mixed. This study evaluated the impact of credit constraints on exporting firms by examining two policy changes in India—one in 1998 that extended subsidized credit to businesses, and another in 2000 that revoked the subsidized credit for a portion of these businesses.

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Small and medium enterprises are seen as promising engines of growth in developing countries but often fail to live up to their potential because of barriers to growth such as limited access to credit. Researchers used a randomized evaluation to measure the impact of introducing computer-generated credit scores on lending to micro and small enterprises in Colombia.

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Highlighting the importance of carrying correct change helped firms to change their behavior and increase profits.

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Trade credit, which is usually provided by up-stream suppliers to down-stream firms, can help small businesses to purchase non-perishable goods for resale and free up resources for other uses. However, provision of trade credit may be limited by high transaction costs, up-stream liquidity constraints, and concerns over repayment.

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Despite the prevalence of female entrepreneurs in developing countries, recent research suggests that women do not benefit from loans and grants in the same way that men do, leading to questions about the value of offering financial services to female entrepreneurs.

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A common sight in developing economies is a series of identical shops, selling the same product at similar prices and all located within extremely close geographical proximity.

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Most microfinance institutions follow a rigid contract model: clients repay loans in weekly installments beginning shortly after disbursement. Researchers tested two features of these contracts, repayment frequency and the time of the first repayment, to determine if characteristics of the loan contract affect borrowers’ repayment behavior and the types of investments they make. They found that less frequent repayments did not increase defaults.

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Lack of managerial capital remains one of the core challenges to SME growth in developing countries. However, rigorous evidence on the impact of programs focused on improving managerial skills is limited. This study evaluates a program which offers training and consulting for managerial staff in garment factories. It focuses on understanding how new management practices are adopted and implemented and what determines their success.

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In sub-Saharan Africa, many of the region’s poor are small-scale farmers. While certain agronomic practices, such as pruning tree crops, can substantially increase yields, take-up of many such practices remains low, potentially resulting in lower yields and profits. In Rwanda, researchers worked with TechnoServe to evaluate the impact of an agronomy training program on farmers’ knowledge and use of best practices in coffee-growing.

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Throughout the developing world, the family owned business is the most common form of enterprise. Though these types of businesses are prevalent, there is tremendous heterogeneity in the success of such firms. For instance, in the retail sector, some firms hold large inventories and earn significant profits, while others hold minimal stocks and provide little more than subsistence income for their owners.

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Many subsistence entrepreneurs in developing countries do not maintain adequate business records which may limit their ability to streamline business operations and increase profits. This exploratory study was designed to explore take up and role of a new mobile application in helping small shopkeepers in Colombia to keep records, create business reports and manage other business tasks.

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