Understanding Micro and Small Enterprise Growth

This microREPORT, written by Elizabeth Dunn and Lillian Villeda, examines the Guatemalan textile handicrafts value chain, the firms that operate in it, and the nature of relationships between them. It emphasizes the role of micro-and-small enterprises (MSEs), their relationships to other firms in the value chain, and their upgrading behavior. The study is based on in-depth and focus group interviews with firm owners at all levels of the value chain within Guatemala. In addition to describing the value chain, the results of the field study advance the research agenda for AMAP BDS Knowledge and Practice by exploring a set of hypotheses about vertical relationships, horizontal relationships, and MSE upgrading within value chains.