Is the Macro-Economic and Administrative Environment Favourable?
NWFP-based SSEs can be expected to respond to macro-economic or administrative influences, although at such a low scale do FB-SSEs operate that only limited attention has been given to their responsiveness to broader economic policy influences on them. To the extent that they may be in particularly remote locations and partly cushioned by subsistence household economies, many NWFP enterprises may not be abruptly affected by a policy change. For larger SSEs, the influence of macroeconomic and administrative interventions may be clearer. For example, Fisseha (1992) revealed the possible strong importance of one macroeconomic factor for enterprise survival: 24 percent of the enterprises closed in 1991 alone and another 29 percent in 1992, in coincidence with major Jamaican currency devaluation. Contraction of markets was identified by entrepreneurs as one of the top three reasons for closure and may itself have originated from the devaluation. It is unclear why devaluation, which makes im
