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This paper investigates the economic rationale for intervention in support of small- and medium-scale enterprises, on both theoretical and empirical grounds. It arguesthat the justification for SME interventions lies in market and institutional failures that bias the size distribution of firms, rather than on any inherent economic benefits provided by small firms. The role of the State is mainly to provide an enabling business environment that opens access to markets and reduces policy-induced biases against small firms.
Governments can accelerate the development of markets for financial and nonfinancial services suited to SMEs by promoting innovation in products and delivery mechanisms and by building institutional capacity. Improving the development impact of SME strategies will require much more attention to the monitoring and evaluation of intervention outcomes.
1.1 Introduction
In this section, A Market-Oriented Strategy for Small and Medium-Scale Enterprises is discussed, with relevant and recent citations. As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the aim and objectives of the study. Others are significance of the study, scope of work, research hypothesis and questions, limitation of the study and definition of terms.
This chapter focuses on the review of related literature. A literature review presents current knowledge, as well as theoretical and methodological contributions, related to A Market-Oriented Strategy for Small and Medium-Scale Enterprises. It documents the state of the art on the subject under study and provides a comprehensive survey of existing literature. In this research work the literature review includes the conceputal review, theoretical framework, the review of related literature …
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