Dynamics of Small and Micro-scale Enterprises and the Evolving Role of Finance

This document examines the dynamics of small- and micro-scale manufacturing enterprises in LDCs, particularly in Africa. It discusses:

• The creation, evolution, and disappearance of firms;
• How such patterns vary by country, stage of development, industrial sector, and policy environment.

It goes on to review the evolving role of finance in this process and financial sources, particularly informal ones. It further emphasizes the importance of integrating informal and formal financial markets.

[Adapted from author]