Friday, June 18, 2010

Whither Growth?

Probably not from an army of small-scale entrepreneurs. Chris Blattman notes these good points from Abhijit Banerjee:

1. The poor are not particularly well-suited to be entrepreneurs: They neither have the risk bearing capacity nor the human capital

2. Nor will anyone give them enough capital to really grow the businesses;

3. This suggests that the main source of dynamism has to be growth of medium to large firms.

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