This paper empirically investigates what drives the growth of private businesses in Timor-Leste and the policy actions needed to facilitate growth amid global uncertainty, especially for micro, small, and medium-sized enterprises (MSMEs).
Estimation results show that four types of MSMEs―those formalized, digitalized, internationalized, and women-led―exhibit different business characteristics and performance results compared with control groups. Accordingly, policy support areas differ by firm type, with a focused approach critical in designing and delivering policy assistance to MSMEs in Timor-Leste.