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New Perspectives on Finacing Small Business in Developing Countries offers the insights of specialists on the issues, obstacles, and challenges critical to the successful financing of small business. Economists and noneconomists alike who are interested in this vital area of concern to developing countries will find in this volume the actual experiences of practitioners, reflecting the diversity of development policy dialogue, rather than a review of theories of finance or resource allocation. This should facilitate an improved understanding of the problems associated with financing small enterprises and should encourage development of new approaches and solutions to the problem.

In recent years, both policy makers and scholars have turned increasing attention to the role of small enterprises in development. Small enterprises are important for reasons relating to both efficieny and equity. Their efficiency is evident in their capacity for innovation, their labor-intensive production methods, and their resource utilization. Small enterprises also extend the benefits of development to the poorest groups, ensuring that they participate in the benefits of economic and social progress.

Ernst A. Brugger (ed)

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Sarath Rajapatirana (ed)

Sarath Rajapatirana is a visiting scholar at the American Enterprise Institute. He joined AEI after a long and distinguished career at the World Bank.