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Microenterprise in the First and Third Worlds

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  • Mark Schreiner

    (Washington University in St. Louis)

Abstract

Sparked by examples from the third world, hundreds of microenterprise programmes have been started in the first world. Will they be successful? This paper reviews the evidence and concludes that microenterprise development is more difficult in the first world. For example, the microenterprise sector in the first world is smaller because most people can get wage jobs and because of the public safety net. Unlike third-world entrepreneurs, first-world entrepreneurs are more often constrained by lack of savings rather than a lack of credit. Most microenterprise programmes, however, can do little to facilitate savings. Because many first-world entrepreneurs also lack skills, most first-world programmes focus on training. The cost-revenue structure of this training, however, is not sustainable. The paper offers several suggestions for how to address the challenges of microenterprise development in the first world.

Suggested Citation

  • Mark Schreiner, 2001. "Microenterprise in the First and Third Worlds," Development and Comp Systems 0108001, University Library of Munich, Germany, revised 27 Dec 2001.
    • Handle: RePEc:wpa:wuwpdc:0108001
    Note: Type of Document - Adobe Acrobat 3.0; prepared on Windows 98; to print on Adobe Acrobat 3.0; pages: ; figures: Included in pdf file
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    References listed on IDEAS

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    1. Mohsin Shafi & Md Nazirul Islam Sarker & Liu Junrong, 2019. "Social Network of Small Creative Firms and Its Effects on Innovation in Developing Countries," SAGE Open, , vol. 9(4), pages 21582440198, December.

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    More about this item

    Keywords

    Microenterprise; microfinance; savings; loans; community development; not-for-profit;
    All these keywords.

    JEL classification:

    • O51 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - U.S.; Canada
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

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