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It is well recognized that the informal economy-unregulated economic activities that generate real or in-kind income-features prominently in the day-to-day lives of many in the developing world. Researchers have begun to explore the informal economy in developed countries but this work has focussed primarily on urban areas to the neglect of rural areas. In this paper the nature and correlates of informal work in nonmetropolitian Pennsylvania are described through an analysis of survey data on 505 families. Results indicate that participation in informal activities is widespread is not more typical of the poor does not contribute greatly to family income on average but those help many families whether difficult economic time is both economically and noneconomically motivated and net of other sociodemographic varaibles is positively related to rurality of residence and formal labor supply. [ABSTRACT FROM AUTHOR]

This paper examines the role that state government can play in addressing the critical issue of venture capital—specifically seed capital. Arranging debt financing mechanisms for small business is not new to governmental development finance agencies. What is new is state government involvement in arranging early stage equity financing. This state intervention entails striking a balance between private venture capital incentives and markets, and a desire to promote public economic development objectives. An overview of the problem and the venture capital industry provides a backdrop for discussion on states' roles and how one state, Pennsylvania, has designed state-sponsored seed venture capital programs.