marginalized by modern entrepreneurs?

lance durham — Tue, 06 Feb 2007 10:07:45 -0500

you quoted this:
"Mr. Yunus's ameliorative entrepreneurship however is very different from the transformative entrepreneurship that Mr. Phelps argues has been central to modern capitalism. Indeed, most of the ventures funded by microloans in Bangladesh are activities that were marginalized by modern entrepreneurs: They don't involve any economies of scale or scope or the use of new technologies capable of producing significant advances in overall productivity and incomes."

this is not exactly true.

"marginalized by modern entrepreneurs"
...while it may be marginalized in western economies, it is not clear that this is so at the BOP.

"They don't involve any economies of scale or scope"
...how large does it have to get before it does involve 'economies of scale or scope'? there are numerous examples of entrepreneurs expanding their operations both in scale and in scope. additionally, things which appear small to us are actually 'much bigger' at the BOP...what is our measuring stick to determine when they achieve an 'economy of scale or scope'?

"They don't involve the use of new technologies capable of producing significant advances in overall productivity and incomes"
...microfinance, itself, is a 'new technology' which 'produces significant advances in overall productivity and incomes'.
...kickstart's pumps, for example, are most often financed. i would say that the financing they do is 'microfinance'.

that all said, it's true enough to say that the 'solution to global poverty' is to increase labor productivity. increased scale+ scope and using 'new' technology are all things that can improve labor productivity, so they are all things that can improve life at the BOP.

Phelps and Yunus Offer Different View of Entrepreneurship

Rob Katz — Mon, 05 Feb 2007 11:26:08 -0500

January 29, 2007 - 12:00, Wall Street Journal

Phelps's Prize

Story Link: http://online.wsj.com/article/SB117003072952090648.html?mod=opinion_main_commentaries

Teaser:
The Nobel Prize lectures given last month by the economics and the peace laureates strikingly emphasized entrepreneurship. But the kinds of entrepreneurship espoused by the laureates are profoundly different. The economist Edmund Phelps's lecture highlights the contribution of entrepreneurial individuals, firms and financiers in transforming stagnant societies dominated by small-business owner

The Nobel Prize lectures given last month by the economics and the peace laureates strikingly emphasized entrepreneurship. But the kinds of entrepreneurship espoused by the laureates are profoundly different. The economist Edmund Phelps's lecture highlights the contribution of entrepreneurial individuals, firms and financiers in transforming stagnant societies dominated by small-business owners into dynamic economies with large and highly productive commercial enterprise.

NextBillion.net - Development Through Enterprise - Phelps and Yunus Offer Different View of Entrepreneurship - Comments

marginalized by modern entrepreneurs?

Phelps and Yunus Offer Different View of Entrepreneurship