MSME Growth Dilemma: Create More or Reduce Mortality?
5 Pages Posted: 9 Dec 2014
Date Written: December 9, 2014
To achieve a targeted GDP growth rate we calculate resources in terms of professionals. But how many entrepreneurs are necessary? How many new firm formation are necessary? These questions are rarely debated. Studies show that there exists a correlation between the expected growth rate and requirement of professionals to achieve a targeted growth rate. Even in case of a no-growth condition, we still theoretically need to have professionals, who are going to replace the professionals who would be retiring soon, out of the market. Similarly in case firms, new firm formation growth has to be sufficient, in order to achieve the economic growth.
Keywords: MSME, mortality, GDP Growth, Entrepreneur
JEL Classification: entrep
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