Analysis of the principle of subsidiarity and MSMEs as private initiatives for economic growth in Honduras: a view from the ESM

Abstract

This academic essay analyzes the principle of subsidiarity and the role of Micro, Small, and Medium Enterprises (MSMEs), examining how state intervention in the market can affect the organic development of these businesses. It highlights the importance of balancing government action with market autonomy. Drawing on Development Theory, it explores public policies in the Honduran context regarding support and growth. The conclusion points out that, in Honduras, despite various initiatives and interventions targeting MSMEs, support for these enterprises is not clearly linked to a framework of national economic growth policies or to the competitiveness of the business sector in particular. Support programs have been characterized by their isolation from broader economic, productive, and large-scale enterprise policies. As a result, the principle of subsidiarity is not fulfilled in Honduras with respect to MSMEs, limiting their ability to fully contribute to national economic development.