Private Enterprise and Financial Markets > Micro, Small and Medium Enterprise
Micro Enterprise, Development Review Vol.6 No.1
By SDS/MSM (07/03, En, Es)
The first article, written by Glenn Westley -Senior Advisor in the Micro, Small and Medium Enterprise Division of the Inter-American Development Bank- examines the potential and pitfalls of microleasing, a relatively unexplored instrument in microfinance. The article examines the pros and cons of leasing (versus straight lending), including legal considerations, the impact of taxes and the influence of banking regulations. A couple of surprises emerge from this analysis. The article concludes with a number of recommendations for MFIs interested in microleasing, as well as some suggestions for policymakers interested in promoting the availability of lease financing for microentrepreneurs. The article is based on an in-depth working paper by the same author.
The second article, written by Pablo Angelelli, Maria Ariano, and Carlos Guaipatín -enterprise specialists at the Inter-American Development Bank- examines the promise of business clusters and evaluates how far business groupings in Latin America are from the "ideal" cluster model, as they have developed in parts of Europe. The article explores the conditions in Córdoba in Argentina and Otavalo in Ecuador and illustrates the challenges and opportunities that they cities face in achieving greater cooperation and competitiveness among their businesses. In relation to public policies designed to support business clusters, the article also highlights some basic conditions (in the targeted sector) that need to precede any government intervention, or else failure is virtually assured.
Last updated: 06/13/07
