The contribution of small enterprises to employment growth in southern and eastern Africa

Abstract Expansion of employment in small enterprises has absorbed over 40% of the increase in the labor force in five countries of sub-Saharan Africa (Botswana, Kenya, Malawi, Swaziland and Zimbabwe). Most of this increase has come through start-ups of new enterprises. With regard to expansion among existing businesses, most do not grow. Among the 25% that have added to their work force, most grew only a little, but these small increases made a significant contribution in terms of job creation. While only about 1% graduated into intermediate size, this process also contributed substantial numbers of new jobs while providing the starting point for about half of today's intermediate-sized enterprises.