How digitalization can bring about productive growth for micro and small enterprises
The report deals with an urgent knowledge gap concerning micro and small enterprises (MSEs), specifically their ability to use digital technologies (email, mobile applications, cloud computing and so on) to increase productivity. It seeks to clarify why only exceptional MSEs have managed to fully exploit the opportunities offered by digital technologies, and it explores the specific benefits and barriers that the digital revolution has created for the average MSE.
The report bridges between hitherto siloed policy debates on the global digital revolution and on informal enterprises and MSEs. Drawing on a broad review of empirical evidence, it puts forward two models of how digitalization affects MSE performance, with a focus on productivity as the central outcome of interest.