Political Science 2225E Lecture Notes - Lecture 9: Free Trade, Corporate Social Responsibility, Social Capital
22 Dec 2020
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Document Summary
Private sector involves all non-governmentally owned businesses, including. Small scale entrepreneur (less than 10 people in this sector) Medium-sized manufacturing units (50 or less people; majority are family owned; jointly owned by friends or business partners) Multinational corporations (businesses that are located in 2 or more countries; employed 100 or more people) Private sector is the engine of capitalist economies. Private enterprises can be major driver of good development provided the state. The distinction between formal vs. informal; small vs. large enterprises is key. Informal enterprises; state has no record of their existence. Don"t pay corporate taxes & ineligible for tax breaks. Often owned by ldcs citizens & dominated by women & non-elites (over. Entrepreneurs in informal sector are held back by. Inability to convert assets they control into capital. Lack of collateral to get a formal loan. The granting of small nominal loans to would-be entrepreneurs. Can get bank financing by using business as collateral.
