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This book addresses important policy-oriented questions about the role played by Small-Scale Enterprises (SSEs) in developing and transitional economies, in particular examining SSEs' contributions to their countries' welfare in the context of recent economic liberalisation programmes. Analysis is centred around four key issues: the efficiency of SSEs, their relation to market competition, the development of clusters and technological upgrading, and is based on econometric techniques and research undertaken in Africa, Asia, South America and Eastern and Southern Europe. The contributors present a balanced appraisal, examining the limitations and social costs as well as the contribution of SSEs to their national economies.