Role of Entrepreneurs in Economyzandbergen
, Student (University), Netherlands
There was a survey by Liedholm and Mead: "The Dynamic Role of Micro and Small Enterprises in the Development Process" Sep 1995.
They examined the dynamic role played by micro and small enterprises (MSEs) in the development process. Based on surveys and studies in a number of countries in Africa and Latin America, it presents new findings on MSE growth patterns. Many of these findings have important implications for the design and implementation of program to support the development of such enterprises. Central points highlighted in the paper were the following.
First, there is much turbulence among MSEs: many new enterprises are started each year. While many others cease to operate. The rate at which new MSEs are being created typically exceeds 20% per year, a rate much higher than previously thought. The annual closure rate is also high, with most closures occurring within the first three years after start-up. Not all closures, however, are a result of business failures.