Our goal at the MIT LIFT Lab is to alleviate poverty in developing countries and to LIFT the lives of the bottom billion. We provide low-income and vulnerable populations with opportunities for growth via supporting the survival of micro and small enterprises (MSEs) through applied research, enhancing their supply chain management capabilities.
In developing regions, MSEs are a crucial component of the economy. MSEs are the source of income to millions of families and the source of goods and services to the bottom billion. In Latin America and the Caribbean, MSEs represent 99% of the companies, contributing to 47% of the employment in the region (ECLAC, 2020).
However, MSEs struggle to survive. The mortality rate of MSEs in developing countries is estimated to be over 30% annually during their first five years of operations (McKenzie, D., & Paffhausen, A., 2018). This is mainly explained by their productivity gap with respect to larger firms. For example, large Mexican companies have exhibited significant productivity growth (almost 6%) while the productivity of micro, small, and medium sized companies have decreased almost 7% annually (Remes, J. ,2014).
Key Stats
What is LIFT Lab?
Research Overview
Our research has a primary goal: to understand the complex micro-retailing ecosystem. We achieve this by conducting empirical research using primary data from various stakeholders (i.e. Suppliers, Micro-retailers and Consumers). Our approach involves conducting studies for each of these stakeholders to gain a deeper understanding of the challenges and opportunities within this sector.
Through these efforts, we contribute to the sustainable development of the region, a critical component of our mission to alleviate poverty. To enable large-scale initiatives, we collaborate with partner universities across Latin America. These collaborations involve the participation of thousands of students each year. These students undergo rigorous training and employ technology to ensure the reliability of data collected through immersive experiences, shadowing, and observation. This meticulous approach enhances the credibility of our findings.
Research Projects
LIFT Lab Funding
Thanks to the generous contribution from FEMSA, we have reached thousands of nanostores, students, and research partners. This collaboration has significantly amplified our efforts, enabling us to support and transform numerous communities.
We aim to continue expanding our reach and amplifying our impact, striving to improve the lives of millions. Together, we are making a tangible difference and paving the way for a brighter, more equitable future.
