Support policies for micro, small, and medium-sized enterprises: A literature review

Abstract

As a sector severely affected by the COVID-19 pandemic, supporting micro, small, and medium-sized enterprises (MSMEs) in their survival and recovery is essential. This article aims to synthesize support policies researched and proposed by the global scientific community during the pre-pandemic, pandemic, and post-pandemic periods. Based on analysis, comparison, and contrast, the article also summarizes the key characteristics of these support policies to provide a theoretical foundation for governments, policymakers, MSMEs, and stakeholders in designing, evaluating, and implementing the most effective support policies. An analysis of 47 articles selected from the first 200 search results on Google Scholar (from 2017 to 2023) reveals that research on MSME support policies surged after the outbreak of COVID-19, accounting for nearly 75% of the studies. However, micro-enterprises have received limited attention from researchers, with only 15% of studies addressing this group. Furthermore, there is a significant disparity in both the quantity and quality of support policies proposed and implemented before and after the pandemic. Notably, a paradox emerges: the most widely applied policies, which are effective only in the short term, are not the ones most frequently recommended by researchers. Finally, this article highlights the ten least popular proposed support policies that warrant further research to assess their feasibility and effectiveness in practice.