Does Forced Solidarity Hamper Investment in Small and Micro Enterprises?
نویسندگان
چکیده
Does Forced Solidarity Hamper Investment in Small and Micro Enterprises? Sharing is a norm in many societies. We present a theoretical model on the trade-off between sharing and investment which we test on data from tailors in Burkina Faso. The empirical results support the idea that there are two behavioural patterns: entrepreneurs following an ‘insurance regime’ comply with sharing norms, are insured but reduce investment in their firm, whereas entrepreneurs in the ‘growth regime’ are not insured but take undistorted investment decisions. The choice of regime depends on the redistributive pressure, the willingness to take risk, and the return on investment. JEL Classification: D13, D22, D92, O12, O43
منابع مشابه
The effect of Omid Entrepreneurship Fund financial support on investment and employment functions in rural areas with emphasis on small and medium enterprises
Introduction Increase in unemployment rate, along with growing resource depletion, is one of the economic-cultural challenges of many developing countries, including Iran. These problems are more deep and complex in rural areas. In other words, our society has been suffering from a lack of production for many years, and consequently, a high unemployment rate in rural areas, which has led to an...
متن کاملEco-innovation of enterprises operating in Poland against the background of European Union countries
Eco-innovation is any innovation that leads to sustainable development by limiting the negative impact of production activities on the environment, increasing the resilience of nature to loads or ensuring greater efficiency and responsibility in the use of natural resources. Eco-innovations are the opportunity for enterprises. Their introduction contributes to reducing the costs of doing busine...
متن کاملExamining significant factors in micro and small enterprises performance: case study in Amhara region, Ethiopia
Furniture manufacturing micro and small enterprises are confronted with several factors that affect their performance. Some enterprises fail to sustain, some others remain for long period of time without transforming, and most are producing similar and non-standard products. The main aim of this manuscript is on improving the performance and contribution of MSEs by analyzing impact of significa...
متن کاملMicro and Small Enterprises in Solid Waste Management: Experience of Selected Cities and Towns in Ethiopia: A Review
Municipalities in developing countries spend the highest proportion of their annual budget on unsatisfactory solid waste management service. Until recently, solid waste management services in Ethiopia were mainly the responsibilities of municipalities, which culminated in inadequate service provision. Thus, the integration of Micro and Small Enterprises (MSEs) by the government has recently bei...
متن کاملMicro and Small Enterprises in Solid Waste Management: Experience of Selected Cities and Towns in Ethiopia: A Review
Municipalities in developing countries spend the highest proportion of their annual budget on unsatisfactory solid waste management service. Until recently, solid waste management services in Ethiopia were mainly the responsibilities of municipalities, which culminated in inadequate service provision. Thus, the integration of Micro and Small Enterprises (MSEs) by the government has recently bei...
متن کامل