Constraints on Financing Innovation of Private Enterprise

The paper contributes to an understanding of the nature of financial constraints on private enterprise in a developing region. Financing innovation is increasingly seen as relatively important and an actual obstacle to innovation. This paper maintains that it is necessary to discuss potentially disadvantageous characteristics of firms in more detail, and to try to find out whether these characteristics are 'natural' obstacles to financing innovation. This paper indicates a change to both financial constraints and the specific type of firm with the most severe financing constraint.