Supporting small-scale manufacturing in developing countries - Lessons from the metalworking sector in Ceara, Brazil

Arguing that small-business policies fail comprehensively to address firms' problems and that project-based assistance focuses too narrowly on individual firms, this paper examines institutional development, which incorporates both approaches. Metalworking in Ceara Brazil, is examined to determine whether this sector matches small-business support patterns predicted for developing countries in general. The individual business requirements (inputs, technology, training, credit, information, market control, common infrastructure, and producer infrastructure) and the institutions that provide each type of assistance are investigated through interviews in businesses and local institutions. The case study reveals that the metalworking sector generally corresponds to expected assistance patterns.