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Entrepreneurship is not a Binding Constraint on Growth and Development in the Poorest Countries

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  • Naude, Wim

Abstract

It is often claimed that entrepreneurship is indispensable for economic growth and development. These claims are mostly generated by scholars working in the field of entrepreneurship andmanagement studies. In contrast, development economics scholars seem to be less concerned about entrepreneurship in the development process Who is right? I show that the arguments and evidence marshalled so far fails to convincingly show that entrepreneurship is a binding constraint on development in the poorest countries. In development economics institutional weakness, not entrepreneurship, is considered by many tbe a more binding constraint on development, especially over the long run. However, recent advances at the interface of entrepreneurship and development economics suggest that unpacking the .black box. nature ofinstitutions may benefit from incorporating an .entrepreneur.. Thus, even if entrepreneurship isnot a binding constraint on economic development, it may still be worthwhile to study entrepreneurship in development as it may improve our understanding of the real binding constraints.

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Bibliographic Info

Paper provided by World Institute for Development Economic Research (UNU-WIDER) in its series Working Paper Series with number Research Paper No. 2009-45.

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Length: 37 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:unu:wpaper:2009-45

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Keywords: entrepreneurship; development; development economics; institutions;

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Cited by:
  1. Duarte N. Leite & Sandra T. Silva & Óscar Afonso, 2012. "Institutions, Economics and the Development Quest," FEP Working Papers 457, Universidade do Porto, Faculdade de Economia do Porto.
  2. Paul Robson & Charles Akuetteh & Paul Westhead & Mike Wright, 2012. "Innovative opportunity pursuit, human capital and business ownership experience in an emerging region: evidence from Ghana," Small Business Economics, Springer, vol. 39(3), pages 603-625, October.
  3. Meghana Ayyagari & Asli Demirguc-Kunt & Vojislav Maksimovic, 2014. "Who creates jobs in developing countries?," Small Business Economics, Springer, vol. 43(1), pages 75-99, June.
  4. Gries, Thomas & Naudé, Wim, 2011. "Entrepreneurship and human development: A capability approach," Journal of Public Economics, Elsevier, vol. 95(3-4), pages 216-224, April.
  5. Mayer-Haug, Katrin & Read, Stuart & Brinckmann, Jan & Dew, Nicholas & Grichnik, Dietmar, 2013. "Entrepreneurial talent and venture performance: A meta-analytic investigation of SMEs," Research Policy, Elsevier, vol. 42(6), pages 1251-1273.
  6. Ravi Sarathy & Elitsa R. Banalieva, 2014. "Economic Development And Marketing Strategies: A Comparative Lens," Organizations and Markets in Emerging Economies, Faculty of Economics, Vilnius University, vol. 5(1).

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