“…Other authors mention limited access to differentiated markets, which might be related to a lack of forward linkages (Kappel, Lay, and Steiner 2004), the concentration of MSEs in low-quality production (Sengendo et al 2001), high transport and transaction costs (Rudaheranwa 2000(Rudaheranwa , 2006Wood and Jordan 2000), corruption (Svensson 2002), low trust and minimalist entrepreneurial strategies (Kappel 2004;Sørensen 2001), education and poor managerial and skills competence (Nalumansi et al 2002;Nel and Shapiro 2003), weak support institutions (Krasemann 1996;Kyomugisha 2001), a lack of sectoral competitiveness, and an overall neglect of MSEs in Uganda (Cotton et al 2003). 2 2 For development of African micro-and small enterprises see McCormick 1999, Kappel 2004; for medium and large manufacturing firms, Teal 2004a, Bigsten andSöderbom 2005;and in general, Liedholm and Mead 1999. The observations of most of the reviewed studies are based on descriptive results, which are unable to show how the stated business constraints affect the performance of MSEs while controlling for other factors (viz., owner-managers' attributes and firms' characteristics and resource endowment). Similarly, the majority of studies conducted in other developing countries on factors (particularly the business environment) explaining the growth potential and performance of MSEs are more descriptive/exploratory in nature.…”