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firm growth

A better way to train small business owners: using psychology to teach personal initiative

Markus Goldstein's picture
Billions of dollars have been spent by governments, microfinance organizations, and NGOs on training small businesses. Traditional training programs typically aim to teach owners to use better business practices such as record-keeping, stock control, and simple marketing.

Unbundling and targeting the business environment for firm growth

L.Colin Xu's picture

There are many views about how a country develops. Some view institutions as the key determinant, while others emphasize the fundamental importance of human capital. Still others highlight the importance of infrastructure, while the World Bank and other international organizations have argued for improving the overall business environment in which firms operate. Finally, a recent strand of literature has emphasized the importance of agglomeration economies as a source of long-term growth. What, however, are the relative explanatory power of these alternative, though not necessarily-mutually exclusive, views? And are their effects specific to the context such as the level of development, the sector in which a firm operates, firm size and age? Answering these questions is important because governments only have limited resources to deal with key challenges. If there are bottlenecks to a country’s development, it is important to diagnose these to provide a sounder basis for policy.