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Ana Karen Negrete García

Doctoral Student in Economic Sciences, University of Goettingen and Research Fellow, German Institute of Global and Area Studies (GIGA)

Negrete García

Worked as Research Assistant at CRC Poverty, Equity and Growth, Goettingen
Worked as Research Assistant, Economic and Political Sciences, at Centro de Investigación y Docencia Económicas (CIDE), Mexico
Graduated in International Economics (Development Economics) at University of Goettingen (MA)
Research interests: Distribution and size of firms in Developing Countries; Structural Change; Innovation and Capital Accumulation; Economic Growth and Poverty Reduction; Applied Econometrics; Experimental Economics.





The Global Entrepreneurship Platform: A buffer to enhance the constrained potential of small scaled firms

Small scaled enterprises account for a large share of production, income and employment in developing countries. Given their close relationship with informality and poverty they are still often framed as subsistence activities and as a residual component in the economy. However, this vision fails to recognize their heterogeneity and their potential to graduate, to innovate and to contribute to development. Recent empirical evidence that supports a more optimistic view has drawn the attention of diverse actors into them, but there are important challenges to overcome.

During the past twenty years numerous governments and organizations have displayed efforts that have had a limited effect in increasing formalization or improving the performance of these firms. The implemented policies and programs have recently focused in either improving the efficiency of the interventions (E.g. business development centres network) or decreasing the costs that firms face (E.g. one-stop-shops). However, a major caveat is that the demand of small scaled firms for growing or formalizing has stayed low mainly because they do not perceive the benefits of doing so. This is a paradox because the wellbeing of the private sector and its interconnection in a globalized era represents the underlying motivation of the structural reforms that many countries have undergone.

This project suggests the formation of a global platform that administers the current ongoing efforts and existent resources destined to promote economic development with small scaled firms as key agents. The idea is to facilitate a channel for the interaction of the different parties and to foster horizontal and vertical integration. This should contribute to strengthen existing networks and to create new ones. The innovation relies in highlighting the need of a neutral and independent entity where parties with potentially opposing interests can interact. This could contribute to solve conflicts in more efficient ways and to solve market failures. Such buffer function has large reaching implications because its crystallization could further represent a tool for negotiation between developed and developing countries that realistically consider strengths and weaknesses “at the ground”.