Growth of micro and small enterprises in southern Africa

As policy-makers and members of the donor community have recognized the importance of micro and small enterprises in developing countries, the paucity of information regarding the ways in which MSEs grow and change over time has become glaring. This study examines one issue oi small-firm dynamics, namely growth, using new data collected in five southern African countries. The level of human capital embodied in the proprietor, firm location, sector, and proprietor gender are found to be important determinants of growth. The results also indicate an inverse relationship between firm growth and both firm age and firm size.