The Missing Middle

missing-middle

In healthy economies, small to medium enterprise are a large part of the economy. This size business provides employment and opportunities for growth for employees and create long-term development beyond crisis survival levels.

Guatemala is like most developing countries, and is lacking small to medium enterprises of 5-500 employees. There are many microbusinesses and even some giant corporations, but the lack of the small to medium enterprise demonstrates a “missing middle” which negatively impacts the national economy. In economies like the United States, small to medium enterprises drive employment and economic growth. In Guatemala, without this middle range of employment and business sizes, the national economic growth is slow or stunted.

In addition to the missing middle of enterprise size, there is a missing middle in financial services. Financial services in Guatemala tend to focus on microfinance and large corporations, but few resources exist in Guatemala to strengthen and grow the small to medium enterprises. This is why For the Love of Missions has chosen to focus on this size business for our economic development work.

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