scholarly journals Quiet Revolution by SMEs in the midstream of value chains in developing regions: wholesale markets, wholesalers, logistics, and processing

Food Security ◽  
2021 ◽  
Author(s):  
Thomas Reardon ◽  
Lenis Saweda O. Liverpool-Tasie ◽  
Bart Minten
Keyword(s):  
South Asia ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Value Chains ◽  
Policy Recommendations ◽  
Developing Regions ◽  
Red Tape ◽  
Sub Saharan ◽  
Medium Enterprises ◽  
Missing Middle

AbstractSmall and medium enterprises (SMEs) in the midstream (processors, wholesalers and wholesale markets, and logistics) segments of transforming value chains have proliferated rapidly over the past several decades in Africa, Asia, and Latin America. Their spread has been most rapid in the long transitional stage between the traditional and modern stages, when value chains grow long and developed with urbanization but are still fragmented, before consolidation. Most of Sub-Saharan Africa and South Asia, and parts of the other regions, are in that stage. The midstream SMEs in output and input value chains are important to overall food security (moving about 65% of food consumed in Africa and South Asia), and to employment, farmers, poor consumers, and the environment. The midstream of value chains is neglected in the national and international debates as the “missing middle.” We found that it is indeed not missing but rather hidden from the debate, hence “the hidden middle.” The midstream SMEs grow quickly and succeed where enabling conditions are present. Our main policy recommendations are to support the SMEs further growth through a focus on infrastructure investment, in particular on wholesale markets and roads, a reduction of policy-related constraints such as excessive red tape, and regulation for food safety and good commercial practices.

Start a Business, Get a Credit, Make an Impact

2020 ◽  
Vol 12 (2) ◽  
pp. 29-47
Author(s):  
Sergey Samoilenko ◽  
Kweku-Muata Osei-Bryson
Keyword(s):  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Necessary Condition ◽  
Sufficient Condition ◽  
Access To Finance ◽  
Access To Credit ◽  
Sub Saharan ◽  
Multi Method Approach ◽  
Medium Enterprises ◽  
Method Approach

It is well known that small and medium enterprises (SME) are important drivers of economic growth, particularly in the countries of Sub-Saharan Africa (SSA). However, typically many SMEs operate as informal enterprises which limits their access to finance. Access to appropriate levels of credit (i.e., get credit) is generally a necessary condition but not sufficient condition for improvement in socio-economic outcomes (i.e., make impact). Thus, improving access to credit is still a desirable goal. This paper uses a DEA-based multi-method approach to explore the “ICT Capabilities & Going Legit & Get Credit & Make Impact” path. The results show that there are statistically significant links between ICT Capabilities and legitimization of SMEs (i.e., going legit), ICT capabilities and get credit, and going legit and get credit. Given this desirability of improving access to credit (i.e., get credit), these results suggest that the increasing the level ICT capabilities should result in increases in the levels of going legit and get credit.

Analysis of the Performance of Microfinance Institutions in Sub-Saharan Africa

2022 ◽  
pp. 188-206
Author(s):  
Lawrence Jide Jones-Esan
Keyword(s):  
Economic Growth ◽  
Small And Medium Enterprises ◽  
Relevant Literature ◽  
Financial Sector ◽  
Sub Saharan Africa ◽  
Microfinance Institutions ◽  
Sub Saharan ◽  
Industrial Crisis ◽  
Medium Enterprises

This chapter examines the performance of microfinance institutions in Sub-Saharan Africa through observations from different perspectives. It examined the effects of microfinance institutions in Sub-Saharan Africa. Relevant literature on the sustainability and outreach of microfinance institutions are also analysed in this chapter. Sub-Saharan Africa's future achievement of necessary economic growth is very likely to depend partly on its ability to develop its economic and financial sectors to be more inclusive of small and medium enterprises in a more comprehensive way. Currently, microfinance directly promotes the development of the intermediate financial sector in Africa, which is positively correlated with economic growth. Despite the worsening of the current industrial crisis, microfinance is seen as an essential developmental tool and continues to grow in Sub-Saharan Africa.

Inclusive Industrialization: The Interplay Between Investment Incentives and SME Promotion Policies in Sub-Saharan Africa

2018 ◽  
Vol 11 (2) ◽  
pp. 557-587 ◽  
Author(s):  
Colette M.A. van der Ven
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
Policy Making ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Investment Incentives ◽  
African Countries ◽  
Promotion Policies ◽  
Sub Saharan ◽  
Medium Enterprises

Abstract Most Sub-Saharan African countries have adopted policies to attract foreign direct investment (FDI) and policies to stimulate the growth of small and medium enterprises (SMEs). While a significant body of literature exists analyzing how these objectives can be mutually reinforcing, the negative interplay between these policies remains relatively unexplored. This paper examines whether, and in what circumstances, investment incentives could undermine SME competitiveness and, conversely, whether policies aiming to promote SMEs through encouraging FDI-SME linkages could impede FDI. This paper demonstrates that, absent a comprehensive approach to policy making, tensions invariably arise between investment incentives and SME promotion policies.

Innovation and small and medium enterprises’ performance in Cameroon

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Martin Ndzana ◽  
Onomo Cyrille ◽  
Gregory Mvogo ◽  
Thierry Bedzeme
Keyword(s):  
Technological Innovation ◽  
Innovation Policy ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Technological Innovations ◽  
Content Type ◽  
Promotion Policies ◽  
Sub Saharan ◽  
Medium Enterprises

PurposeThis article attempts to explain performance through the development of innovations within small and medium enterprises (SMEs). Specifically, the authors analyse the determinants of innovation and assess the role of technological and non-technological innovations in performance.Design/methodology/approachBased on a sample of 508 Cameroonian SMEs, the PSM (propensity score matching) technique was used to reduce the selection bias inherent in this type of analysis.FindingsThe results show that technological innovation does not influence significantly the performance of SMEs, whereas non-technological innovation positively influences it. The combination of these two types of innovation leads to better performance than even accentuated development of only one type.Practical implicationsTo improve the performance of SMEs, it is necessary to adopt a comprehensive innovation policy that combines non-technological and technological innovations. In addition, it is important to intensify informations and communication technologies (ICT) promotion policies that contribute to the adoption of innovations within enterprises.Originality/valueThis paper contributes to the literature by showing the role of technological and non-technological innovations in explaining the performance of SMEs. Moreover, unlike the existing work in sub-Saharan Africa, which is limited to testing the innovation–performance relationship, this study also determines the productivity gain generated by innovative firms compared to non-innovative ones.

scholarly journals Does agri-business/small and medium enterprise investment scheme (AGSMEIS) impact on youth entrepreneurship development in sub-Saharan Africa? Evidence from Nigeria

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nduka Elda Okolo-obasi ◽  
Joseph Ikechukwu Uduji
Keyword(s):  
Young People ◽  
Small And Medium Enterprises ◽  
Sub Saharan Africa ◽  
Special Focus ◽  
Content Type ◽  
Entrepreneurship Development ◽  
Youth Entrepreneurship ◽  
Sub Saharan ◽  
Medium Enterprises ◽  
The Impact

PurposeThe purpose of this paper is to critically examine the agri-business/small and medium investment schemes (AGSMEIS) in Nigeria. Its special focus is to investigate the impact of the AGSMEIS on youth entrepreneurship development in Nigeria.Design/methodology/approachThis paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 1,200 respondents were sampled across the six geopolitical zones of Nigeria.FindingsThe results from the use of a combined propensity score matching (PSM) and logit model indicate that AGSMEIS initiative generates significance gains in empowering youths in enterprise development, and if enhanced will help many young people become entrepreneurs.Practical implicationsThis suggests that AGSMEIS initiative can facilitate youth's access to credit and help them become owners of small and medium enterprises.Social implicationsIt implies that investing in young people for small and medium enterprises could bring Nigeria into the modern economy and lift sub-Saharan Africa out of poverty.Originality/valueThis research adds to the literature on youth entrepreneurship development’s debate in developing countries. It concludes that targeting the young people in AGSMEIS should form the foundation of public policy for entrepreneurship, poverty alleviation, and economic development.

Human Development Paradigm for South Asia

2018 ◽  
Keyword(s):  
South Asia ◽  
Human Development ◽  
Sub Saharan Africa ◽  
Health And Nutrition ◽  
The People ◽  
Sub Saharan ◽  
Development Paradigm

In the chapter, Haq gives a snapshot of the human progress of South Asia, comparing it with other regions. He was worried about the region beginning to lag behind all other regions, including Sub-Saharan Africa. He highlights the role of the two largest economies in the region, India and Pakistan, in financing the major investment in education, health and nutrition for the people. Haq advocates some fiscal and monetary reforms are suggested to invest in human development.

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