PHOTO CREDIT: THE LEMELSON FOUNDATION
SGBs are critical to thriving, prosperous economies.
THE EXISTING LITERATURE SHOWS:
- 78% of the formal workforce is employed at SMEs in low income countries. Read more >
- SGB impacts go beyond employment. Their ripple effect on the local economy includes payments to suppliers, income for distributors, and taxes to local government. SEAF estimates that every $1 invested in SGBs generates $13 in the local economy. Read more >
- As firms grow, they provide better quality jobs. In one study, wages in Ghana dramatically increased by 50-70% when employment shifted from microenterprises to larger enterprises. Read more >
- The majority of small firms will stay small. But companies with the potential for growth have an outsized impact on job creation. Read more >
A number of organizations are supporting research to learn more about how SGBs effect development, and what types of SGBs have the greatest impact on the poor through employment, access to goods and services, and access to markets. For more background on the evidence base for SGBs, read: