Return to capital in small firms [1]

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.

Video: 
Standfirst: 
Investment in small firms led to monthly returns of 6% in Sri Lanka. However, the growth prospects for most of them remain unchanged.
Date Published: 
Tuesday, December 12, 2017
Tags: 
cash transfers [2]
self-employed [3]
enterprise [4]
SME [5]
small business [6]
return to capital [7]
investment [8]
growth [9]
Sustainability [10]
Authors: 
chrismwoodruff [11]
Cover Image: 
Topic: 
Firms & Trade [12]
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The skills to pay the bills: Returns to on-the-job soft skills training [15]
A better way to train small business owners: Using psychology to teach personal initiative [16]
The implication of firm competition on industrial policies [17]
Photo Credit: 
Nimanka Mahesh