What's Distinctive about Growth-Oriented Entrepreneurship in Developing Countries?

Abstract

Entrepreneurship in emerging markets is distinctive from that practiced in more developed countries. Better understanding these distinctions is critical to private sector development in developing countries. Of particular interest are new and growth-oriented enterprises, which have a greater capacity to create sustainable economic growth than microenterprises or long-established SMEs with limited growth prospects. The distinctions between growth-oriented entrepreneurs in developing and developed markets are rooted in the inefficiency of markets in many developing countries, but the response of entrepreneurs to these inefficiencies is often surprising and counterintuitive. These findings call into question the policy approaches to entrepreneurship development often advocated. While noting the possible lack of correlation between business environment and levels of growth-oriented entrepreneurship, we focus on three key distinctions: opportunity, financial resources, and apprenticeship and human resources. These distinctions suggest a rich research and policy reform agenda.