Based on the World Development Report, it is observant that the small firms in developing countries tend to stay small after a period time, usually a decade or two. On the other hand, cooperation and firms in the developed countries such as United States, companies tend to become a lot larger after a period time. Based on research, in America if a firm lasts 35 years, it becomes average 10times more productive and employs 10 times more people. However in countries such as India, if a first last same length of time the production only doubles and employment actually decreases.

Governments of the developing countries have tried many different methods to help improve this situation because only an increase in the number of world-beating companies, such as Google, Tita or Samsung, the country’s economy could be accelerating. However most of method such as cheap loans, grants to pay wages for extra employers, and support female business owners, did not provide a effective solution to the problem at hand, according to The Economist. What doe work though was free management training. Desh had sent 130 of its stuff on a management-training program for 8 month and once they came back, they helped Desh to set up textile exports and modern industry. Today Desh generating $13billion of exports a year. The only obstacles stops this method to put into action is that majority of the head of the small firms do not believe they need management training program for their employees.

Source: The Economist, Oct.6, Looking for a Google