Impact Evaluation of Small and Medium Enterprise Programs in Latin America and the Caribbean
146 Pages
English

Impact Evaluation of Small and Medium Enterprise Programs in Latin America and the Caribbean

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Small and medium enterprise (SME) support programs are a common feature of industrial policy in developing countries, but one whose effectiveness is not well known. Governments are motivated to support SMEs both because they make up the majority of industrial enterprises and contribute substantially to GDP, employment and earnings, and because SMEs are thought to be weaker than their larger counterparts. Few governments, however, have evaluated their SME programs rigorously so there is little empirical basis for rational allocation of resources to the well performing programs. The paucity of empirical evidence from rigorous impact evaluations also presents problems for multi-lateral and bilateral donors in deciding whether or not to provide lending or aid for such policy interventions to promote SME development.
This study rigorously evaluate SME programs in four Latin American countries to gain insights into which programs perform better than others, and just as important, why. These countries - Mexico, Chile, Colombia and Peru - cover a wide range of enterprise support programs, including training, innovation and technology upgrading, quality control, market development, export promotion and network formation. Broadly comparable panel data on enterprises is used to investigate the net impacts of these SME interventions.

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Published 29 April 2011
Reads 61
EAN13 9780821387764
Language English
Document size 4 MB

Impact
Evaluation
of Small and Medium
Enterprise Programs
in Latin America and the Caribbean
Editors
Gladys López-Acevedo
Hong W. TanImpact
Evaluation
of Small and Medium
Enterprise Programs
in Latin America and the CaribbeanImpact
Evaluation
of Small and Medium
Enterprise Programs
in Latin America and the Caribbean
Editors
Gladys López-Acevedo
Hong W. Tan© 2011 The International Bank for Reconstruction and Development / The World Bank
1818 H Street NW
Washington DC 20433
Telephone: 202-473-1000
Internet: www.worldbank.org
All rights reserved
1 2 3 4 13 12 11 10

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ISBN: 978-0-8213-8775-7
eISBN: 978-0-8213-8776-4
DOI: 10.1596/978-0-8213-8775-7
Cover and Design: Alejandro Espinosa/sonideas.com
Photographs: back cover © Ray Witlin/World Bank Photo Library (left), © Aravind Teki/
Dreamstime.com (right)
Photographs (interior): © World Bank Photo Library
Library of Congress Cataloging-in-Publication data have been requested.Contents
Acknowledgments ......................................................................................................................................... xi
Abbreviations ................................................................................................................................................ xii
CHAPTER 1
Motivation, Methodology and Main Findings ............................................................................................. 1
Motivation for the Study ................................................................................................................................................... 1
The Impact Evaluation Challenge ...... 2
Review of Recent Literature .............................................................................................................................................. 5
The Four Country Studies 6
The Non-Experimental Data ............................................................................................................................................. 6
Analytical Approach........................................................................................................................................................... 7
Overview of Cross-Country Results ................................................................................................................................. 8
Concluding Remarks ........................................................................................................................................................10
CHAPTER 2
A Review of Recent SME Program Impact Evaluation Studies ................................................................ 13
Introduction ...................................................................................................................................................................... 13
Studies Selected for Review ............................................................................................................................................14
Enterprise Support Programs Studied ............................................................................................................................14
Non-Experimental Data Used ..........................................................................................................................................14
Analytic Approaches and Main Findings ...................................................................................................................... 18
Selected References ..................................................................................................................................... 19
ANNEX
Summary of Individual Studies ................................................................................................................... 21
CHAPTER 3
Evaluating SME Support Programs in Chile .............................................................................................. 33
1. Introduction .................................................................................................................................................................. 33
2. Overview of SME Programs in Chile .......................................................................................................................... 34
3. The Chile Data ............................................................................................................................................................. 37
4. Empirical Approach and Initial Findings .................................................................................................................... 43
5. Estimating Program Impacts Using the ICS-ENIA Panel .......................................................................................... 48
6. Summary and Concluding Remarks ............................. 55
CHAPTER 4
Evaluating SME Support Programs in Colombia ....................................................................................... 57
1. Introduction .................................................................................................................................................................. 57
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2. Support Policies for SMEs in Colombia ..................................................................................................................... 58
3. Past Impact Evaluations of FOMIPYME ..................................................................................................................... 60
4. Data Used in the Evaluation ....................................................................................................................................... 61
5. Methodology ................................................................................................................................................................ 65
6. Estimation and Results ................................................................................................................................................ 67
7. Conclusions ...................................................76
Annex 4.1 Telephone Survey Questionnaire ............................................................................................... 77
Annex 4.2 Tey Results .......................................................................................................... 78
CHAPTER 5
Evaluating SME Support Programs in Mexico ........................................................................................... 81
1. Introduction .................................................................................................................................................................. 81
2. SME Programs .............................................. 82
3. Past Evaluations ........................................................................................................................................................... 89
4. Data ............................................................................................................................................................................... 92
5. Model ............................................................................................................................................................................ 96
6. Results .................................................................................................................... 99
7. Conclusions ............................................................................................................................................................... 100
ANNEX 5.1 Estimates of Program Impacts in Mexico ............................................................................ 102
CHAPTER 6
Evaluating SME Support Programs in Peru ............................................................................................. 109
1. Introduction ..................................................109
2. Size of SME Sector and Program Coverage ............................................................................................................. 110
3. Description of SME Programs ................................................................................................................................... 111
4. Data Description .........................................................................................................................................................114
5. Methodology ...............................................................................................................................................................115
6. Results .........................................................................................................................................................................116
7. Sensitivity Analysis ....................................................................................................... 119
8. Conclusions ................................................ 120
Annex 6.1 Innovation Centers (CITES) ...................................................................................................... 122
Annex 6.2 Designing a Supplementary Survey ....................................................................................... 123
References ................................................................................................................................................... 126Figures and Tables
FIGURES
Figure 1.1 Impact on Firm Performance With and Without SME Program .................................................................... 3.2 Selectivity Bias from Program Participation .................................................................................................. 4
Figure 3.1 Time Paths of Y for Treatment and Control Groups ..................................................................................... 43
Figure 3.2 Distribution of Propensity Scores and Region of Common Support......................................................... 46
Figure 3.3 Time-Paths of Program Impacts on Selected Final Outcomes ................................................................... 53
Figure 4.1 Distribution of FOMIPYME Projects by Activity and Sector .......................................................................59
Figure 4.2 Distribution of Propensity Score and Rt .......................................................... 69
Figure 4.3 Estimated Outcomes for Treatment and Control Groups ........................................................................... 70
Figure 5.1 ropensity Scores ................................................................................................................. 98
Figure 6.1 Evolution of CITE-Calzado Revenue by Service Type (2001-2006) ............................................................113
Figure 6.2 Distribution of Propensity Scores and Region of Common Support........................................................117
Figure 6.3 Evolution of Mean Profi ts Per Worker for PROMPYME
and BONOPYME, 2001-2006 (thousands of soles) ..................................................................................... 119
Figure A6.2.1 Distribution of Propensity Scores and Rt ................................................ 124
TABLES
Table 1.1 Overview of Data and SME Programs in Four Latin American Countries ..................................................... 7
Table 1.2 Impacts of Program Participation – Fixed Effects Results ............................................................................... 9
Table 2.1 Recent Impact Evaluation Studies of Enterprise Support Programs ........................................................... 15
Table 2.2 Recent Impact Evaluation Studies—Data Sources and Period Covered 16
Table 2.3 Recent Impact Evaluation Studies—Approach and Findings ....................................................................... 17
Table 3.1 SME Program Participation and Participation Status ................................................................................... 38
Table 3.2 Distribution of Treatment and Control Groups in the Panel ......................................................................... 39
Table 3.3 Treatment and Control Groups by Firm Size and Sector ..................................................... 40
Table 3.4 Summary Statistics on Intermediate and Final Outcomes For the Treatment and Control Groups ......... 42
Table 3.5 Conditional Likelihood of Any Program Participation Estimates from Cox Proportional Hazards Model 46
Table 3.6 Intermediate and Final Outcomes in 2004 Nearest Neighbor Estimator .................................................... 47
Table 3.7 Program Impacts of Any Program and by Program Type Levels and
Fixed Effects Model with Propensity Score Matching .................................................................................. 50
Table 3.8 At tributes of Treatment Cohorts by Year of Program Entry ........................................................................... 51
Table 3.9 Time Effects of Any Program Participation Fixed Effects Model with Propensity Score Matching ........... 52
Table 3.10 Bounding Impacts of Program Participation Trimming
Bottom 5% and 10% of Treatment Group Outcomes .................................................................................. 54
Table 4.1 Project and Resources Executed by FOMIPYME (2008 Prices) .................................................................... 59
Table 4.2 Impacts of FOMIPYME .................................................................................................................................... 61
Table 4.3 Distribution of Firms in the Final Sample ...................................................................................................... 61
Table 4.4 ample 63
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