Micro and small enterprises (MSEs) in developing countries are typically considered to be severely credit constrained. Additionally, high business risks may partly explain why the capital stocks of MSEs remain low. This article analyzes the determinants of the capital stocks of MSEs in poor...

This paper investigates the existence and nature of constraints prevailing among Mexican microenterprises. It provides inter‐temporal insights by relying on firm‐level data spanning from 1994 to 2012. A performance index is defined based on firm levels of capital stock and monthly profits,...