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By Ronald L. Parker, Randall Riopelle, William F. Steel

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Constraints The importance of different constraints varied considerably by MSE size and country (Chapter 7). In general, more SSEs than microenterprises indicated that finance was a constraint on their growth. Weak demand or heavy competition was more likely to constrain the profitability of microenterprises in easy-entry activities. It is sometimes difficult to distinguish between financial and demand constraints. Firms whose cash flow is weak because demand is Page 5 weak may report "finance" as their main constraint, even though they would not be suitable candidates for credit.

Title : Small Enterprises Adjusting to Liberalization in Five African Countries World Bank Discussion Papers. ; Riopelle, Randall; Steel, William F. publisher : World Bank isbn10 | asin : 082133154X print isbn13 : 9780821331545 ebook isbn13 : 9780585245430 language : English subject Small business--Africa, Sub-Saharan, Structural adjustment (Economic policy)--Africa, Sub-Saharan, Africa, Sub-Saharan--Economic policy. 6/42/096 subject : Small business--Africa, Sub-Saharan, Structural adjustment (Economic policy)--Africa, Sub-Saharan, Africa, Sub-Saharan--Economic policy.

Constraints The importance of different constraints varied considerably by MSE size and country (Chapter 7). In general, more SSEs than microenterprises indicated that finance was a constraint on their growth. Weak demand or heavy competition was more likely to constrain the profitability of microenterprises in easy-entry activities. It is sometimes difficult to distinguish between financial and demand constraints. Firms whose cash flow is weak because demand is Page 5 weak may report "finance" as their main constraint, even though they would not be suitable candidates for credit.

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