Micro Enterprises and Inclusive Development: A Thematic Analysis

Abstract

Micro-enterprises critically drive poverty reduction, job creation, entrepreneurship, and inclusive growth. Despite their importance, focused research on micro-enterprise development and its direct ties to inclusive growth remains scarce. This study addresses this empirical gap through a Systematic Literature Review (SLR) compliant with PRISMA 2020 guidelines. Synthesizing peer-reviewed studies via descriptive and thematic analyses, the findings reveal that micro-enterprises directly foster income generation, employment, women’s economic empowerment, financial inclusion, and localized development. Enterprise growth is primarily driven by access to finance, entrepreneurial skills, digital transformation, institutional support, innovation, and market access. Conversely, growth is constrained by limited formal credit, weak managerial skills, technological barriers, and insufficient institutional frameworks. Although state policies and entrepreneurship programmes bolster enterprise resilience, an integrated framework is needed. This study develops a conceptual model mapping these dynamics to inclusive development, offering actionable insights for policymakers, researchers, and financial institutions aimed at accelerating inclusive economic growth.