Exploring the Relationship between Micro-Enterprises and Regional Development: Evidence from Tunisia

Fatten Gazzah, Jean Bonnet and Sana Harbi
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Fatten Gazzah: CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique

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Abstract: We investigate the relationship between the presence of micro-enterprises and regional development, as measured by a validated index of regional development, at the level of Tunisian delegations (small-scaled regions). Applying spatial measures and spatial econometric techniques on a data set of 262 delegations, our results show that in disadvantaged areas, a higher micro-enterprise presence is positively related to regional development. However, in relatively higher developed areas of Tunisia, micro-enterprises appear to play only a marginal role in regional development. In general, our results emphasise the importance of attracting large, capital-intensive firms in efficiency-driven economies like Tunisia. Our results also show the important and positive role that micro-enterprises can play in regions where large, capital-intensive firms are absent.

Date: 2017
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Published in International Review of Entrepreneurship, 2017, 15 (4), pp.465-488

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Working Paper: Exploring the relationship between micro-enterprises and regional development: Evidence from Tunisia (2017)
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