"We examine whether the likelihood of entrepreneurial activity is related to the prior career experiences of an individual's coworkers, using a unique matched employer-employee panel data set. We argue that coworkers can increase the likelihood that an individual will perceive entrepreneurial opportunities as well as increase his or her motivation to pursue those opportunities. We find that an individual is more likely to become an entrepreneur if his or her coworkers have been entrepreneurs before. Peer influences also appear to be substitutes for other sources of entrepreneurial influence: we find that peer influences are strongest for those who have less exposure to entrepreneurship in other aspects of their lives."
"This joint article by IFC and McKinsey finds that the unmet needs for credit by all emerging-market micro, small, and medium enterprises is significant, despite the importance of this sector to economic development and job creation. The article, Two Trillion and Counting, offers the first comprehensive assessment of the global credit gap, ranging from $2.1 trillion to $2.5 trillion, and some implications for public and private sector actors as they seek to close that gap."
"In this guide, we endorse management and governance systems as a key ingredient for a successful and stable business. We encourage SMEs to establish appropriate systems and to avoid the common 'one-man show' approach among them. We show them the relative ease of achieving such a positive development just by making a few changes in how they manage their businesses. To help them, we present best practices and benefits of proper management and governance systems, along with business case studies about their fellow SMEs that have successfully applied them."
"The Stocktaking Report aims to provide the G-20 Leaders with a summarized but comprehensive framework by which to understand the SME finance gap and its challenges. The first part of the report is conceptual and primarily consists of a review of the literature on SME Finance in the developing world; the second part of the report discusses the analysis of 164 cases of SME Finance interventions compiled through a collective effort involving G-20 member countries, non-member countries, development finance institutions, and private sector players. Finally, the report highlights key recommendations that are proposed to the G-20 Leaders in order to achieve signifi cantand sustainable scale-up of SME access to financial services across the developing world."
"Investments designed specifically to promote development are not new, but their application across a broad range of sectors-from moderate-income housing, to health care, water and sanitation, and rural development-is recent. And they raise several critical questions for development policy. Are they an effective new tool for long-term development? Are they likely to reach the scale necessary to be part of an overall development strategy?
This report offers an important survey and analysis of the field. Impact investing has the potential to spur development in regions and sectors that traditional foreign direct investment does not target, but it faces many challenges, notably market fragmentation and a lack of infrastructure. The authors, former executive vice president of the Overseas Private Investment Corporation and former CGD visiting fellow, John Simon, and Julia Barmeier suggest concrete steps that will help the market mature and grow, with separate and specific recommendations for practitioners, development finance institutions, and regulators."
"This research note asserts that impact investment, which is intended to create positive social or environmental impact beyond financial return, constitutes a new asset class. The report also includes the first large-scale data analysis of return expectations from more than 1,000 impact investments and compares them to established benchmarks for emerging and developed market debt and equity returns. We hope this report helps to advance a broader understanding of impact investing as an appropriate and economically effective way to complement government and philanthropy in solving the world's greatest problems at scale."
"The Handbook on Impact Evaluation serves two broad audiences – researchers new to the evaluation field and policy makers involved in implementing development programs worldwide. We hope this book will offer an up-to-date compendium that serves the needs of both audiences, by presenting a detailed analysis of the quantitative research underlying recent program evaluations and case studies that reflect the hands-on experience and challenges of researchers and program officials in implementing such methods."
"With the growing recognition of women entrepreneurs’ contribution to economic growth, there is need to understand the state of their operations in India. A country-level diagnostic of the demand and supply of finance for women-owned Micro, Small and Medium Enterprises is essential to drawing up country specific strategies to improve their access to finance. This report aims to assess the financing gap through a hybrid approach, including both secondary estimation and primary data collection, and identify the key characteristics of women-owned businesses, their need for financial and non-financial services, their uptake of financial products and the barriers to their access. Subsequently, key areas of focus have been identified that will help improve women entrepreneurs' access to finance."
"Recent research has suggested that the reduction of entry regulation can promote firm entry and job creation, but little is known about the quality of firms and jobs created through these reforms. To shed light on this question, we employ data from Portugal, a country which implemented one of the most dramatic and thorough policies of entry deregulation in the industrialized world. The impact of these major changes can be traced with a matched employer-employee database that provides unusually rich information on the quality of founders and employees associated with the new firms.
Our assessment indicates that the short term consequences of the reform were just as one would predict with a standard economic model of entrepreneurship: The reform resulted in increased firm formation and employment, but mostly among "marginal firms" that would have been most readily deterred by existing heavy entry regulations. These marginal firms were typically small, owned by relatively poorly-educated entrepreneurs, operating in the low-tech sector (agriculture, construction, and retail trade). These firms were also less likely to survive their first two years than comparable firms that entered prior to the reform. The social impact of entry deregulation may be limited by the quality of the firms it creates."
"This report depicts the landscape of development organizations that fund and support small and medium enterprises (SMEs) in developing countries: 1) multilateral development banks, 2) bilateral government donor agencies, and 3) development finance institutions (DFIs). The report is a new contribution to both the development community, as well as the Aspen Network of Development Entrepreneurs (ANDE). Advocacy and policy work is a strategic priority for ANDE, and the report's findings will enable the Network to understand the international development community and to be more strategic in its approach as it seeks to influence and shape the international development SME agenda."