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

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  • Sonne, Lina

    () (UNU-MERIT)

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.

Suggested Citation

  • Sonne, Lina, 2010. "Financing pro-poor entrepreneur-based innovation: A review of existing literature," MERIT Working Papers 038, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
  • Handle: RePEc:unm:unumer:2010038
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    File URL: https://www.merit.unu.edu/publications/wppdf/2010/wp2010-038.pdf
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    References listed on IDEAS

    as
    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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    More about this item

    Keywords

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

    JEL classification:

    • O16 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Financial Markets; Saving and Capital Investment; Corporate Finance and Governance
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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