Can MSMEs Drive Poverty Reduction and Enhance Income Equity in the LAC Region? Unveiling Empirical Insights

This chapter explores the potential of Micro, Small, and Medium Enterprises (MSMEs) in driving poverty reduction and improving income equity within the Latin America and Caribbean (LAC) region. Utilizing empirical data and case studies, the analysis highlights how MSMEs serve as catalysts for economic development by creating jobs, fostering innovation, and supporting local communities. The chapter delves into the structural challenges faced by these enterprises, including access to finance, market integration, and policy support, while underscoring the pivotal role of tailored interventions and inclusive frameworks. Key findings emphasize that fostering MSME growth requires an ecosystem approach that balances economic, social, and environmental sustainability, making MSMEs integral to achieving equitable development in the LAC region.