Publication

This paper analyzes the economic impact of the informal, small-enterprise sector in Eastern and Southern Africa. The author describes how a number of surveys carried out in various African countries have indicated that the structure and development of the small-enterprise sector varies significantly from country to country and over time, depending on the complex national differences in socio-economic structures and policies. In order to understand the relationship between the small-enterprise sector and the rest of the economy, the paper investigates how the development of the small-enterprise sector has changed in Eastern and Southern Africa, first under the import-substitution era and then under the structural adjustment period. The author analyzes four common theories of small-enterprise development and compares them with general economic development patterns.