Business practices in small firms in developing countries 2010-2015

Management has a large effect on the productivity of large firms. But does management matter in micro and small firms, where the majority of the labour force in developing countries works? This study developed 26 questions that measure business practices in marketing, stock-keeping, record-keeping, and financial planning. These questions were administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria, and Sri Lanka. This data helps to show that variation in business practices explains as much of the variation in outcomes—sales, profits, and labour productivity and total factor productivity—in micro-enterprises as in larger enterprises. These questions were included in surveys of micro and small enterprises conducted in seven countries between 2008 and 2014. These samples vary in their representativeness and size, since they were in most cases conducted as part of impact evaluations of particular programs.