This paper deals with the influence of public policies on the employment situation in micro and small enterprises (MSEs) in Peru. Policies, institutions and regulations that provide a conducive environment for small enterprises can make a substantial contribution to employment creation. In order to reach a better understanding of how policies in different countries influence the quantity and quality of employment in MSEs, ILO/SEED initiated an international comparative research project in seven countries: Chile, Guinea, Pakistan, Peru, South Africa, Tanzania and Viet Nam.