For the third year in a row, the Small Business Administration (SBA) is looking to cut its microloan program, and once again the Senate and House are lining up against it, the “Wall Street Journal,” reports. The Microloan program provides funding to nonprofit community-based lenders who, in turn, lend and provide technical assistance to small-businesses. The SBA contends that microlans can be done more efficiently through its existing 7(a) loan program, while critics contend that most individuals who apply for microloans lack the credit scores needed to qualify for the 7(a) loan program.
Wharton Panel Debates India vs. China
A panel of Wharton faculty and experts in emerging markets private equity recently debated the relative advantage of private equity investment in India vs. China. India has solid underpinnings for economic growth, including a democratic government, a strong education system, widespread knowledge of English and a deep pool of expatriates experienced in Western businesses, according to the panelilsts. Wharton Professor Jeremy Siegel suggested that India’s “soft” attributes, such as a democratic government and a free press that is rooting out corruption, outweigh China’s more impressive investments in “hard” infrastructure such ports, plants, and transportation systems. Siegel is also concerned about China’s system of “guanxi” in which business is conducted more through elaborate networks of relationships than on merit.
Tags: private equity investment in China, private equity investment in India