We study the role of formal institutions of contract enforcement in facilitating investments in small and medium firms(MSME). In a framework where established entrepreneurs can enforce contracts informally using their network ties and hierarchical advantage, we argue that an efficient formal...

We study the role of formal institutions of contract enforcement in facilitating investments in small and medium firms(MSME). In a framework where established entrepreneurs can enforce contracts informally using their network ties and hierarchical advantage, we argue that an efficient formal...

The growth of business, especially small and medium scale enterprises are critical for employment generation in less developed countries. This study seeks to identify the role of the institutions of contract enforcement for business performance. Specifically, this paper, using a nationally...