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Home > Business and Economics > Business and Management > Ownership and organization of enterprises > Small businesses and self-employment > Drivers of Strong Business Performance: An Analysis of Smes in Selected Emerging Economies
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Drivers of Strong Business Performance: An Analysis of Smes in Selected Emerging Economies

Drivers of Strong Business Performance: An Analysis of Smes in Selected Emerging Economies


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About the Book

Small and medium-sized enterprises (SMEs) are the predominant economic units worldwide, creating a significant share of employment and, to a lesser extent, of national value added. As the ILO estimates, SMEs account for an average of 70% of total employment worldwide, and contribute up to 40% of national income in emerging-market economies. However, SMEs tend to face a number of challenges to survive, maintain operations, and become competitive. This has important implications in terms of development and the number and quality of jobs that countries are able to create. Paradoxically, SMEs can also become a drag on growth and development in business contexts with low institutional, economic, social and environmental development. In fact, business ventures in the informal sector that materialize as a survival means to make a living for individuals with poor labour market prospects, especially in faulty business environments, can drag down aggregate productivity and income per capita. A large number of empirical analyses show a wide range of factors that can affect enterprises' performance. Some relate to the business environment while others refer to firm internal factors, such as poor management practices, the lack of a business plan or strategy, or inefficiencies in production processes. This report is part of a wider research project to analyse and identify key macro and micro drivers of strong business performance. It is focused on an evidence-based assessment of the business environment and management practices across eight emerging-market economies: Egypt, Vietnam, Turkey, Colombia, Indonesia, Tunisia, Belarus and Peru. Using panel data, the main goal was to assess what factors contribute to SME success across the selected countries. Some of the main findings of this study confirm that fair competition is associated with better business performance. For this reason, it is essential to make every possible effort to accelerate the transition from informality to formalization. Something that affects smaller companies more than proportionally, such as financial depth, financial inclusion and access to financing, should be essential elements of a comprehensive policy framework to foster sustainable enterprise development.


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Product Details
  • ISBN-13: 9789220357569
  • Publisher: International Labour Office
  • Publisher Imprint: International Labour Office
  • Language: English
  • ISBN-10: 9220357569
  • Publisher Date: 30 Nov 2021
  • Binding: Digital (delivered electronically)
  • Sub Title: An Analysis of Smes in Selected Emerging Economies


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