Policies for Small Enterprises Creating the Right Environment for Good Jobs

Many governments in developing countries are making efforts to support the development of micro- and small enterprises (MSEs), as they recognise their important role in employment creation and poverty reduction. However, millions of people who work in MSEs are paid low incomes, have little or no social protection and are exposed to dangerous working conditions. This paradox stems from a policy and regulatory environment that should help the development of MSEs and improve the quality of jobs provided by them, but in practice often establishes biases and stifles growth. Based on studies carried out in Chile, Guinea, Pakistan, Peru, South Africa, Tanzania and Vietnam, this book looks beyond MSE promotion initiatives to analyse the overall policy and regulatory environment. It examines the impact of national business laws and taxation, labour regulations, trade and finance policies; identifies common problems and presents major principles for reform. More than simply helping to create more jobs, this approach aims to help to create more jobs of better quality.