Unleashing Entrepreneurship

Warrick Smith writes(PDF) about the potential of entrepreneurship in the developing world. "...Today, few informed commentators question that the private sector plays a critical role in growth and poverty reduction. The ideological debates of the past are giving way to more pragmatic discussions about how best to unleash and expand that contribution while preserving other social values. New research is also providing fresh insights into what works and what doesn’t...when assessing the contribution of entrepreneurship to development,we need a more encompassing view. We need to include peasant farmers toiling in their fields in Uganda and Bangladesh; street vendors peddling their wares in La Paz and Manila; and microenterprises in Cairo and Istanbul...The private sector is the principal source of investment, with domestic private investment substantially overshadowing foreign investment across the developing world...The private sector accounts for about 90 percent of jobs in developing countries, .and poor people rate self-employment and jobs as the two most promising ways to improve their situation. But employment is not the only mechanism. A vibrant private sector expands the availability and reduces the prices of goods in society, including goods consumed by poor people. And firms and commercial transactions are the main source of taxes from which governments can empower the poor through investments in health, education and other public goods, as well as through direct income transfers..."