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The Allocation of Entrepreneurial Talent under Imeperfect Lending Decisions

  • Alberto ZAZZARO


    (Universit… Politecnica delle Marche, Dipartimento di Economia)

An argument commonly adduced to explain differences in economic development among regions is the scarcity of entrepreneurial talent in less developed regions. This paper disputes this idea, pointing out that in less developed regions the scant diffusion of innovative entrepreneurial activities is essentially due to the allocation of existing talent to traditional or non-entrepreneurial activities rather than to a lack of entrepreneurial spirit. In particular, this paper argues that in peripheral and less developed regions the greater difficulties encountered by banks in correctly evaluating entrepreneurial talent may be a major factor in preventing existing entrepreneurial talent from being fully exploited.

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Paper provided by Universita' Politecnica delle Marche (I), Dipartimento di Scienze Economiche e Sociali in its series Working Papers with number 157.

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Length: 37
Date of creation: Nov 2001
Date of revision:
Handle: RePEc:anc:wpaper:157
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