Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development
Lina Sonne
#2010-037
Innovation spurs economic growth and development. Pro-poor innovation in
rural areas is more likely to occur through small-scale ventures and
entrepreneurs than industrial research and development. Whilst previous
rural development policies have focussed on small-holder agriculture,
the fact is that most rural poor are landless poor and therefore
unlikely to benefit greatly from agriculture-based policies. Instead
most poor are entrepreneurs, running micro ventures, often at
subsistence levels in both agriculture related and non-farm sectors.
Though most rural poor are entrepreneurs out of necessity, a few are
opportunity entrepreneurs pursuing a profitable business, innovating and
looking to grow. These are the growth focussed entrepreneurs that are
likely to have a large indirect effect on the poor by providing
employment opportunities as well as improved good and service. This
paper discusses the concept of propoor entrepreneur-based innovation
(PEBI) by reviewing existing literature on rural development, innovation
and entrepreneurship.
Keywords: Pro-poor innovation, entrepreneurship, rural development
JEL Codes: O18, O31, Q18, R51
UNU-MERIT Working Papers
ISSN 1871-9872