The course explores the role of firms and their regulation in the development process with examples drawing from all regions of the world with special emphasis on Africa. Throughout, it charts public policy options to enhance the contribution of firms to social goals. Special emphasis is on the evolution of firms, how they emerge, grow and die in different sectors and economies. Features of successful “ecologies of firmsâ€ù that contribute to productivity growth and poverty reduction are discussed. In this context, current debates on the role of micro, small and medium enterprises are explored. Opportunities provided at the “bottom of the pyramidâ€ù are considered as are special policy issues arising from constraints on poor people in accessing markets. Policy options with special emphasis on pro-competitive measures are discussed. The relationship between enterprise and values is a major theme. This is anchored in the traditional debates about the purpose of firms, profit maximization and shareholder value. On this basis the potential role of corporate social responsibility (“doing well by doing goodâ€ù) is considered and that of hybrid forms of social enterprise, including not-for profit organizations. Light is shed on the debates on social enterprise by considering the dark side of capitalism – races to the bottom and firms that do “well by doing harmâ€ù. Policy options for “social enterpriseâ€ù are discussed comprising standards, property rights, taxes as well as enforcement approaches, including related self-regulation. Speculative discussion about the future role of firms, including state-owned firms, in a globalizing world concludes.