Template-type: ReDIF-Paper 1.0 Author-Name: Sonne, Lina Author-Email: sonne@merit.unu.edu Author-Workplace-Name: UNU-MERIT Title: Pro-Poor, Entrepreneur-Based Innovation and it’s Role in Rural Development Abstract: Innovation spurs economic growth and development. Pro-poor innovation in rural areas is more likely to occur through small-scale ventures and entrepreneurs than industrial research and development. Whilst previous rural development policies have focussed on small-holder agriculture, the fact is that most rural poor are landless poor and therefore unlikely to benefit greatly from agriculture-based policies. Instead most poor are entrepreneurs, running micro ventures, often at subsistence levels in both agriculture related and non-farm sectors. Though most rural poor are entrepreneurs out of necessity, a few are opportunity entrepreneurs pursuing a profitable business, innovating and looking to grow. These are the growth focussed entrepreneurs that are likely to have a large indirect effect on the poor by providing employment opportunities as well as improved good and service. This paper discusses the concept of propoor entrepreneur-based innovation (PEBI) by reviewing existing literature on rural development, innovation and entrepreneurship. Classification-JEL: O18, O31, Q18, R51 Keywords: Pro-poor innovation, entrepreneurship, rural development Series: UNU-MERIT Working Papers Creation-Date: 2010 Number: 2010-037 File-URL: https://unu-merit.nl/publications/wppdf/2010/wp2010-037.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2010037