Policy-induced constraints on small enterprise development in Asian developing countries

For some years, a number of Asian developing countries have promoted the growth of small enterprises through direct assistance, at the same time as allowing the macro-economic environment, such as trade and exchange rate policies, to favour large-scale industries.This article examines the cases of Nepal, the Philippines and Bangladesh, and identifies the areas of discrimination, such as the tax structure, registration, access to finance and utilities. It concludes that while macro-environmental conditions are now more favourable for small enterprises than in the past, micro-level policies, such as assistance programmes, still need to be improved in their implementation.