This study calls for better reporting on
the use of U.S. foreign aid to build up the private sector in developing
countries. It examines three tools for strengthening small and medium-sized
enterprises in the developing world: enterprise funds, equity funds, and
technical assistance from non-governmental organizations.
The three approaches have proven useful
and important, and the current challenge is to much better understand both
their limitations and their capacities as we seek ways to support the development
of private enterprises.