A SUBSECTOR APPROACH TO SMALL ENTERPRISE PROMOTION AND RESEARCH

This paper introduces a diagnostic research methodology designed to help target small enterprise development efforts in less developed countries. It argues that research should focus on commodity-specific subsectors, which include the competing channels and supporting input and output linkages of small firms. Using this approach, analysts can improve their understanding of small enterprise dynamics, interventions that may promote them at low cost, and policies that constrain small firm growth.