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Micro and small enterprise upgrading in the Philippines: the role of the entrepreneur, enterprise, networks and business environment

Author

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  • Hampel-Milagrosa, Aimée

Abstract

In developing countries, micro and small enterprises (MSEs) comprise the largest part of the industrial fabric – offering millions of people worldwide the chance to be employed and earn livelihoods. However, empirical evidence suggests that a large majority of MSEs never manage to upgrade significantly. Defining upgrading as “growth through innovation” and using the Philippines as a country case, this study evaluates the constraints and success factors for Filipino-owned MSEs to upgrade. It finds that the entrepreneurs’ characteristics and strategies for coping with a range of structural and sectoral constraints are the most important factors for success: entrepreneurs singlehandedly upgrade their firms by ingeniously substituting or complementing factors of production. However, such super entrepreneurs are born into lives of privilege and opportunity. For this reason, now more than ever, creating a level playing field for all should be a priority for both policymakers and donors.

Suggested Citation

  • Hampel-Milagrosa, Aimée, 2014. "Micro and small enterprise upgrading in the Philippines: the role of the entrepreneur, enterprise, networks and business environment," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 86, number 86, July.
    • Handle: RePEc:zbw:diestu:86
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    File URL: https://www.econstor.eu/bitstream/10419/199211/1/die-study-86.pdf
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    Citations

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    Cited by:

    1. Imelda T. Angeles & Ma. Socorro P. Calara & Allan B. Guzman, 2019. "The mediating effect of microfinancing on access to finance and growth of microenterprises: evidence from the Philippines," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 9(1), pages 1-16, December.
    2. Reeg, Caroline, 2015. "Micro and small enterprises as drivers for job creation and decent work," IDOS Discussion Papers 10/2015, German Institute of Development and Sustainability (IDOS).
    3. Ashoff, Guido, 2015. "Die Global Governance-Qualität der internationalen Aid Effectiveness Agenda: eine theoretische Analyse und Bewertung der Systemreform der internationalen Entwicklungszusammenarbeit," IDOS Studies, German Institute of Development and Sustainability (IDOS), volume 87, number 87, July.
    4. Francioni, Barbara & Vissak, Tiia & Musso, Fabio, 2017. "Small Italian wine producers’ internationalization: The role of network relationships in the emergence of late starters," International Business Review, Elsevier, vol. 26(1), pages 12-22.
    5. Ascarya & Siti Rahmawati, 2015. "Analysis The Determinants Of Micro Enterprises Graduation," Working Papers WP/1/2015, Bank Indonesia.
    6. Tilman Altenburg & Aimée Hampel-Milagrosa & Markus Loewe, 2017. "A Decade On: How Relevant is the Regulatory Environment for Micro and Small Enterprise Upgrading After All?," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(2), pages 457-475, April.

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