Over US$24.5 billion of development aid is targeted at Small and Medium Sized Enterprises (SMEs) and donor interest is increasing, yet the development benefits of targeting small enterprises are controversial. This page explores the debates in more detail, and lists key resources on the topic.
For more specific resources on adjusting SME development programmes in response to the COVID-19 pandemic, please refer to the DCED knowledge page on Adjusting PSD interventions in the short term.
DCED publication 
External publication
A policy brief that summarises the findings of a review of the theory and practice on MSE-oriented business environment reforms.
An article that discusses the key takeaways of a literature review looking at the effectiveness of entrepreneur support programmes.
A Synthesis Note that summarises current debates on the definition of small enterprises, their role in job creation and poverty reduction, and the most appropriate forms of support.
Global evidence
- Theories of Change Update: High-growth SME Development, USAID 2022
- Small Matters: Global evidence on the contribution to employment by the self-employed, micro-enterprises and SMEs, ILO, 2019
- A Research Agenda for the Small and Growing Business Sector, Woodruff for IGC / ANDE / Argidius, 2018
- Small and medium-sized enterprises and decent and productive employment creation, ILO, 2015
High-growth enterprises
- A range of publications is available on ANDE’s Why SGBs? subsite
- What small and growing businesses need to scale up: the case for effective technical assistance, Argidius Foundation, 2018
- Growth entrepreneurship in developing countries: Literature review, World Bank, 2016
- Small and Growing Businesses in Africa, ada, 2016
Micro-enterprises
- Household enterprises in Mozambique: Key to poverty reduction but not on the development agenda?, World Bank Policy Research Working Paper, 2013
- Household enterprises in Sub-Saharan Africa: Why they matter for growth, jobs, and livelihoods, World Bank Policy Research Working Paper, 2012
- Matchmaking between businesses and investors: A practical guide for technical assistance providers on how to integrate matchmaking best practices into programmatic activities, GIZ, 2019
- Headwinds and Tailwinds in Banking Small Businesses, CGAP blog, 2016
- Scaling-Up SME Access to Financial Services in the Developing World, IFC, 2010
- How to fulfill the potential of business development services using SCALE, Argidius 2021
- Small Business Training to Improve Management Practices in Developing Countries. Reassessing the Evidence for “Training Doesn’t Work”, World Bank, 2020
- What do we know about the effectiveness of Business Management Training? Key studies referenced in the DCED Evidence Framework, DCED, 2019
- Management delivers: Why firms should invest in better business practices, IGC, 2018
- Business Development Services for small enterprises: Guiding principles for donor Intervention, DCED, 2001
- Creating Better Business Environments for Micro and Small Enterprises, DCED, 2018
- Policies that Promote SME Participation in Public Procurement, DCED, 2017
- SME Promotion Agencies – Is there a best set-up? A quest for good practice, ILO, 2016
- The Impact of Business Environment on Small and Medium Enterprise, Rocha, 2014
- Micro-Multinationals, Global Consumers and the WTO. Towards a 21st Century Trade Regime, eBay, 2013
- Innovation Policy in Developing Countries. A Guide for Developing Countries, World Bank, 2010
Photo credits: Chandan Dey.