Is Small Beautiful? Small Enterprise, Aid and Employment in Africa

John Page and Mans Soderbom

No wp-2012-094, WIDER Working Paper Series from World Institute for Development Economic Research (UNU-WIDER)

Abstract: Aid providers frequently link supporting small firms to job creation. Small firms create about half of new jobs in Africa, but they also have higher failure rates. Ignoring firm exit exaggerates net employment growth. Using panel data for Ethiopia, we find that small and large enterprises create similar numbers of net jobs. Moreover, wages in small firms are persistently lower. To create more 'good' jobs aid should target the constraints to the growth of firms of all sizes.

Keywords: Business enterprises; Economic assistance and foreign aid; Industrial policy (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (3)

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Journal Article: Is Small Beautiful? Small Enterprise, Aid and Employment in Africa (2015)
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