Summary

“In Mexico, microenterprises and SMEs make up 99 percent of firms, employ about 64 percent of the workforce, and account for more than 40 percent of GDP. Given the importance of SMEs in the economy, governments in Mexico over the past twenty years have established a wide variety of SME support programs. How effective these SME programs have been in achieving their objectives is unclear.

This paper evaluates SME support programs in Mexico using a panel of firm-level data for two groups of firms-a treatment group that participated in SME programs and a control group that did not. The panel data have been created by linking SME program participation information to a large panel of annual industrial surveys (1994-2005) maintained by Mexico’s National Institute of Statistics and Geography.”