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Financing the development of small-scale industries (English)

Options for financing small-scale industries in developing countries are presented based on current knowledge and experience. Such promotion is generally handicapped by a combination of two major factors: 1) the actual policy framework is generally insufficiently conducive to development of small enterprises and in practice tends to favor larger ones; and 2) institutions designed to provide financial or technical/managerial services to industrial enterprises do not provide sufficient assistance to small firms. Discrimination against small industries, even if unintentional, weakens the overall industrial structure and may impede the process of industrialization in developing countries. Surveys indicate, however, that small industries make a very significant contribution to industrial development, but that governmental support is not translated into effective action. Measures to correct policies of discrimination against small industries are therefore needed. In selecting target groups, enterprises employing up to 20 workers appear to require the major concentration of effort. Policy options for intensification of international agency lending for small-scale industries are included.

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Citation

KOCHAV, D. BOHLIN, H. DITULLIO, K.

Financing the development of small-scale industries (English). Staff working paper ; no. SWP 191 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/211781467980499687/Financing-the-development-of-small-scale-industries