Changing Mosaic of Enterprises

Unasylva 228, Vol. 58, 2007 local markets requires upscaling in the volume or value of production. In a business environment that is primarily oriented towards the development of large enterprises, small enterprises operate on an uneven playing field. Globalization has added a new dimension to this imbalance; while new opportunities have emerged, so also have challenges, especially when political, social, economic and technological differences among countries enhance the unevenness of the playing field. Managing this disparity has become the major thrust of discussions relating to world trade and development. Small enterprises play an important part in the processing, transport and marketing of wood and non-wood products. Increasingly even wood production is moving into the domain of smallholders in many countries. Provision of environmental services such as recreation is another area in which small enterprises are increasingly involved. This article examines some of the economic issues confronting small-scale enterprises, including those in the forest sector. It focuses on the links among scale, markets and economic performance, particularly in the context of globalization. After analysing the dynamics of the development of small enterprises, including the implications of changes in value chains, it presents key issues relating to the future development of small enterprises and the relevance of various interventions.