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Financing pro-poor entrepreneur-based innovation: A review of existing literature

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  • Sonne, Lina

    ()
    (UNU-MERIT)

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    Abstract

    That innovation and entrepreneurship are important for poverty alleviation and development is well established. However, despite a general agreement that finance affects growth and development by supporting innovative activities in the economy, little has been written specifically on how pro-poor entrepreneur-based innovation in rural areas should be financed. This review explores the literature relevant to understanding financing of pro-poor innovation and entrepreneurship, and shows that financial theories are moving from linear supply-led subsidised credit approaches towards new, more systemic perspectives. These include theories on financial systems theories, microfinance, and financial access and inclusion. This review notes that a theoretical and policy gap exists as regards financing of pro-poor entrepreneur-based innovation in rural areas.

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    File URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-038.pdf
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    Bibliographic Info

    Paper provided by United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) in its series MERIT Working Papers with number 038.

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    Date of creation: 2010
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    Handle: RePEc:unm:unumer:2010038

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    Related research

    Keywords: Pro-poor finance; finance innovation; finance entrepreneurship; financial innovation; rural finance;

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    1. Mark M. Pitt & Shahidur R. Khandker, 1998. "The Impact of Group-Based Credit Programs on Poor Households in Bangladesh: Does the Gender of Participants Matter?," Journal of Political Economy, University of Chicago Press, vol. 106(5), pages 958-996, October.
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