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Light touch, lean tally: Impacts of an MSME support program in Côte D'Ivoire

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  • Lakemann, Tabea
  • Beber, Bernd
  • Lay, Jann
  • Priebe, Jan

Abstract

In many developing countries, micro, small and medium enterprises (MSMEs) employ more people than any other type of firm, so identifying ways to raise productivity, improve employment conditions and formalize labor in these settings is of prime policy importance. However, due to the small number of workers per firm and the possibly long results chain linking management to employment, few MSME-targeted interventions and evaluations address job-related outcomes directly. We do so in a randomized controlled trial (RCT) of a support program for MSMEs in Côte d'Ivoire that included financial management and human resources (HR) components. Six and eighteen months after the end of the program, we find muted impacts on business practices, access to finance, and firm performance. On the employment side we find sizeable, positive impacts on job quality, driven by the share of employees receiving at least the minimum wage and the share with written contracts. We find no significant effect on the number of staff. Taken together, our results underscore the difficulty of boosting firm performance and creating jobs with a low-intensity intervention on the one hand, and the feasibility and importance of improvements in employment quality in MSMEs in developing countries on the other.

Suggested Citation

  • Lakemann, Tabea & Beber, Bernd & Lay, Jann & Priebe, Jan, 2024. "Light touch, lean tally: Impacts of an MSME support program in Côte D'Ivoire," Ruhr Economic Papers 1096, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    • Handle: RePEc:zbw:rwirep:306824
    DOI: 10.4419/96973273
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    References listed on IDEAS

    as
    1. David McKenzie & Christopher Woodruff, 2017. "Business Practices in Small Firms in Developing Countries," Management Science, INFORMS, vol. 63(9), pages 2967-2981, September.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    MSME support; employment quality; firm performance; randomized controlled trial; Côte d'Ivoire;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M10 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - General

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