Business Practices in Small Firms in Developing Countries

  title={Business Practices in Small Firms in Developing Countries},
  author={David McKenzie and Christopher Woodruff},
  journal={Management Science},
Management has a large effect on the productivity of medium and large firms. But does management matter in micro and small firms, where the majority of the labor force in developing countries works? We develop 26 questions that measure business practices in marketing, stockkeeping, record-keeping, and financial planning. These questions have been administered in surveys in Bangladesh, Chile, Ghana, Kenya, Mexico, Nigeria and Sri Lanka. We show that variation in business practices explains as… CONTINUE READING
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