Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development

Lina Sonne ()
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Lina Sonne: UNU-MERIT

No 2010-037, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)

Abstract: Innovation spurs economic growth and development. Pro-poor innovation in rural areas is more likely to occur through small-scale ventures and entrepreneurs than industrial research and development. Whilst previous rural development policies have focussed on small-holder agriculture, the fact is that most rural poor are landless poor and therefore unlikely to benefit greatly from agriculture-based policies. Instead most poor are entrepreneurs, running micro ventures, often at subsistence levels in both agriculture related and non-farm sectors. Though most rural poor are entrepreneurs out of necessity, a few are opportunity entrepreneurs pursuing a profitable business, innovating and looking to grow. These are the growth focussed entrepreneurs that are likely to have a large indirect effect on the poor by providing employment opportunities as well as improved good and service. This paper discusses the concept of propoor entrepreneur-based innovation (PEBI) by reviewing existing literature on rural development, innovation and entrepreneurship.

Keywords: Pro-poor innovation; entrepreneurship; rural development (search for similar items in EconPapers)
JEL-codes: O18 O31 Q18 R51 (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2010037

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