Donald C. Mead

The dynamics of micro and small enterprises in developing countries

Abstract The number of people engaged in micro and small enterprises increases as a result of new enterprises being started and through an expansion of existing activities. As a partial offset to these increases, employment declines when existing businesses cease operations. This article draws on recent survey work to examine the magnitude and determinants of enterprise births, closures and expansions. It explores the ways in which these different sources of change are influenced by the state of the macroeconomy, and examines policy and project implications.

Small enterprises and economic development : the dynamics of micro and small enterprises

Chapter 1: Introduction, I. MSE Characterisation: A Snapshot, II. The Contribution of MSEs to Development, III. Heterogeneity and Diversity Among MSEs, Chapter 2: MSE Dynamics: Theory and Literature Review, I. Dynamic Theories of the Firm, II. Empirical Evidence, III. Major Issues and Hypotheses, IV. Analytical Approaches and Survey Methods, V. Summary, Chapter 3: New Starts, Closures, and Expansion of MSEs, I. Overview, II. New Starts, III. Closures, IV. Net Expansion, V. Summary, Chapter Four: MSE Growth by Location, Sector, Linkages and Gender, I. Growth by Location, II. Grwoth by Sector, III. Growth by Alternative Patterns of Market Linkages, IV. Growth by Gender, V. Summary, Chapter Five: MSEs and the Macroeconomy, Chaper Six: Problems faced by MSEs, Chapter 7: The Diverse Characteristics and Needs of MSEs, I. New Starts, II. Non-growing MSEs, III. Small Growth, IV. Graduates, V. Summary, Chapter Eight: Summary and Implications, I. Summary, II. Implications, Bibliography.

The informal sector elephant

Abstract Different analysts have used the term “informal sector” to mean different things. A data set with 2,200 small enterprises chosen using random procedures in seven countries makes it possible to test the relationships between different measures. The analysis finds only limited parallels between definitions based on size, on registration, on conformity to fiscal and other regulations, and on degrees of modernization. Wide variations appear from one country to another. The term may be appropriate for examination of individual countries, especially if the analyst defines it precisely; but its use in multicountry analysis is fraught with difficulties.

The contribution of small enterprises to employment growth in southern and eastern Africa

Abstract Expansion of employment in small enterprises has absorbed over 40% of the increase in the labor force in five countries of sub-Saharan Africa (Botswana, Kenya, Malawi, Swaziland and Zimbabwe). Most of this increase has come through start-ups of new enterprises. With regard to expansion among existing businesses, most do not grow. Among the 25% that have added to their work force, most grew only a little, but these small increases made a significant contribution in terms of job creation. While only about 1% graduated into intermediate size, this process also contributed substantial numbers of new jobs while providing the starting point for about half of todays intermediate-sized enterprises.

A subsector approach to small enterprise promotion and research

Abstract This paper introduces a diagnostic research methodology designed to help target small enterprise development efforts in less developed countries. It argues that research should focus on commodity-specific subsectors, which include the competing channels and supporting input and output linkages of small firms. Using this approach, analysts can improve their understanding of small enterprise dynamics, interventions that may promote them at low cost, and policies that constrain small firm growth.

Of contracts and subcontracts: Small firms in vertically dis-integrated production/distribution systems in LDCs

Abstract The increasing complexity in production and distribution which accompanies development provides opportunities for small firms to participate by undertaking a limited range of activities in vertically dis-integrated systems through subcontracting arrangements. In addition to reducing costs in particular activities, this facilitates the growth of production and distribution systems which are more complex than one integrated firm could manage or finance on its own. For this pattern to work, though, contracting difficulties arising from market imperfections must be overcome. Alternative ways used by Third World firms to solve these coordination problems are identified, and policy implications suggested.

Small Industries in Egypt: an Exploration of the Economics of Small Furniture Producers

In the analysis of the transition from low-income, rural-centered, capital-poor countries to modern, capital-rich, urbanized nations, small enterprises have received increasing attention in recent years. In rural areas, there is a belated recognition of the importance of nonfarm enterprises as supplementary sources of income and employment in village households. In towns and cities, there has been an explosion of interest in small producers, including but not limited to the so-called urban informal sector.