In developing countries, micro- and small enterprises make up a large part of the productive units, which is why they are considered important mechanisms for the generation of jobs and even the reduction of poverty. However, these benefits are mitigated by the detrimental effects generated by the proliferation of small companies. Therefore, this study aims to explore the effects of distortions in the business environment and informal competition on the proliferation of small-scale companies, which are often associated with low levels of productivity in Peru.
The results of this research propose to focus attention on the following public policies: (a) productivity improvement, which is closely dependent on the increase in the workforce, capital accumulation and improvement of institutions; and (b) reduction of informality and improvement in labor and tax regulations.
|Effective start/end date||1/04/20 → 31/03/21|