Creating jobs that reduce poverty: A research agenda on developing-country gazelles

Abstract

Can "gazelles" create jobs and reduce poverty in developing countries? Researchers at RTI International think they might be a key resource in generating the hundreds of millions of jobs needed to absorb new entrants to the global labor market over the next decade. The term "gazelles" refers to a special class of businesses -- most of which are small and medium enterprises (SMEs) -- that have been found to create a vastly disproportionate number of jobs in the United States. Although the link between SMEs and job creation in the US is well established, comparatively little is known about if and how they drive job creation in developing countries. This research report documents a research agenda that will give developing country governments and the donor community information they need to more effectively support SMEs that generate growth, create jobs, and, ultimately, reduce poverty.