Research issues for small enterprise development

Michael Farbman | William Steel

This article defines the central themes and issues on which research is most important to understand the role of small-scale enterprises (SSEs) in developing countries and how their contribution to economic growth and social welfare can best be enhanced. The purpose is to provide a
common framework and direction for agencies and researchers interested in development of SSEs, with an emphasis on improving their environment and access to support institutions. Suggestions for research priorities are made on the basis of gaps in the existing literature; although no attempt
is made to review that literature, some especially pertinent studies are cited as examples of each theme.Four broad categories of research can be identified:○ Characteristics and dynamics: descriptive studies that build empirical understanding of the nature and role of SSEs (Themes
1 and 2);○ Economic and social issues: analytical studies that help to understand how SSEs and efforts to assist them interact with their economic and social environment (Themes 3–5);○ Support mechanisms: the principal financial and non-financial approaches to assisting
SSEs and analysis of their rational and effectiveness, differentiating among different target groups as one moves along the continuum from self-employment of the very poor to microenterprises and small and medium-scale firms (Themes 6 and 7);○ Enhancing assistance: ways of improving
and extending the different types of assistance provided to SSEs and of enhancing SSEs' ability to use it effectively (Themes 8–12).