Obstacles to Business Development and the Size of Firms in Latin America

Eduardo Lora and Patricia Cortés

No 4257, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: (Available only in Spanish) Given the multiplicity of factors that can affect business development for both the entrepreneurs themselves and for national economic authorities, it is useful to establish the severity of these obstacles so that their efforts can focus on the most critical problems. With that objective, this study analyzes two new and very valuable sources of information. First, we use the results from a set of "Business Environment Surveys" conducted in 73 countries, which researched the importance and severity of a series of problems that can affect the operation and growth of firms. Second, we analyze information from the balance sheets of large companies in 52 countries in various regions of the world to detect some features of Latin American firms, and analyze the determinants of the size of large companies, on the assumption that these firms are on the frontline of the possibilities of business development offered by each country.

Date: 2001-03
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