In the developing world, between 15 and 20% of workers are self-employed outside of agriculture, predominantly in small firms. What are the barriers to transition from an economy with majority self-employed entrepreneurs to one where larger firms employ labor? This project approaches firm growth from the angles of hierarchy and collective decision-making, focusing on contracts and social norms as potential frictions in firm aggregation. Researchers partner with Tenoli, a Mexico City-based social enterprise that offers training and networks to small businesses, currently supporting around 1,900 family enterprises. Results forthcoming.
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