Managerial Practices and Performance of Small and Medium-sized Enterprises: Evidence from Burkina Faso

Working Paper
Published on 19 October 2022

A previous version of this paper was published on 20 November 2020. 

Abstract

Managerial practices are seen as key drivers of productivity differences across firms. However, they are generally considered as unobserved and assimilated to firms' individual fixed effects. Using survey data collected in Burkina Faso, this study analyzes the relationship between managerial practices and the development of Small and Medium-sized Enterprises (SMEs). Considering the management skills as technology that can be adopted, the empirical results show a positive and significant association between managerial practices and firms' performances. The estimation by firms' size also provides evidence that the linkage between management score and performances is particularly stronger for larger firms. Policy implications are then drawn to inform initiatives aiming at promoting governance and expansion of SMEs in developing countries.

Authors

Aristide S. Ouédraogo

Université de Ouahigouya

Soumaïla Gansonré

University Joseph Ki-Zerbo