Policy brief: Income variability and innovation

Entrepreneurs in the developing world are vulnerable to a range of negative shocks and constraints associated with a lack of development

Abstract

Small poor entrepreneurs in the developing world are vulnerable to a range of negative shocks and constraints associated with a lack of development. They spend most of their lives coping with frequent income disruptions, balancing expenses, and making difficult trade-off decisions. This is not without implications; some studies suggest that entrepreneurs’ preoccupations with pressing budgetary concerns and income variability could leave them with a reduced mental capacity to guide their decision making in business management.

Citation

Tilburg University (2016) Policy brief: Income variability and innovation

Policy brief: Income variability and innovation

Published 1 January 2016