In many low- and middle-income countries most micro and small enterprises (MSEs) struggle to upgrade into mediumsized
and large enterprises. An extensive literature offers manifold explanations for the phenomenon but no conclusive answer on what
the most important factors for MSE upgrading are: entrepreneur or firm characteristics; personal or business networks; or the business
environment. On the basis of extensive empirical research conducted in Egypt, India, and the Philippines this article argues that the
entrepreneur and the entrepreneur’s coping strategies matter much more than what the recent literature on Doing Business indicators
and the business environment would lead us to believe.