Return to capital in small firms
Chris Woodruff (Oxford University) finds that when an investment is made in small enterprises in Sri Lanka, the returns are high, at 6% per month. However, on average, this growth is not sustainable as enterprises do not change their dynamics; they do not scale-up operations or increase employment. This points to the need for selection of small firms, that have the potential to grow, to invest in.
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Date Published
Tuesday, December 12, 2017
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