An entrepreneurial spirit has long been viewed as a positive factor for economic growth (Schumpeter,
1934; Schmitz, 1989; King and Levine, 1993; Wennekers and Thurik, 1999). A large middle class has been
postulated as the cradle of entrepreneurship (Landes, 1998; Maddison, 2007). The usual argument
posits that middle-class individuals have the resources and values to postpone gratification and reap the
long-term benefits of innovation. Linking these two together, it results that a large middle class
promotes economic growth through a more dynamic entrepreneurial environment.