Abstract:Summary This paper argues that the main problem of small firms in LDCs is not their size but being isolated and powerless. It is not size as such that determines the development potential of small firms, but how they relate to other firms in the industry and in which political and institutional setting they operate. This view is supported by the European example of industrial districts, in which communities of small firms have shown remarkable resilience and growth. The article draws together some key features… Show more
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