Abstract
Interventions designed to support small and medium enterprises (SMEs) are popular among policy makers, given the role SMEs play in job creation around the world. Significant resources from governments and international organizations are directed to business-support interventions in low and middle-income countries (LMICs) based on the assumption that market failures and institutional constraints impede SME growth. SME business-support interventions in LMICs most often relate to formalization, business environment, exports, clusters, training, technical assistance, access to credit, and innovation. This paper reviews and summarizes 40 rigorous evaluations of SME-support services in LMICs and presents evidence to inform policy debates pertaining to SMEs and business-support services. We present evidence that business-support interventions improve firm performance and create jobs. However, little is known about which interventions work best for SMEs and why. More rigorous impact evaluations are needed to fill the knowledge gap in the field.
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