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Entrepreneurship in Developing Countries

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  • Acs, Zoltan
  • Virgill, Nicola

Abstract

This study offers that entrepreneurship is consistent with and even complementary to the older and more traditional development strategies. We survey the literature on entrepreneurship in developing countries which, admittedly, is wide and covers a range of issues from culture and values; institutional barriers such as financial sector development, governance, and property rights; and to the adequacy of education and technical skills. A broad literature has also developed on foreign direct investment and its positive and negative effects on technology transfer and entrepreneurship. After the collapse of the Soviet Union, a number of studies examined the development of small- and medium-sized enterprises in transition economies. As these economies moved from centralized economies to market economies, enterprise and entrepreneurship became important. Yet, other studies examine the effects of infrastructural development and the macroeconomy on entrepreneurship. With such a wide scope of issues, a framework for synthesizing the literature is needed. This study offers that the identification of the externalities which affect entrepreneurship provides a useful framework to examine the literature on entrepreneurship in developing countries.

Suggested Citation

  • Acs, Zoltan & Virgill, Nicola, 2010. "Entrepreneurship in Developing Countries," Foundations and Trends(R) in Entrepreneurship, now publishers, vol. 6(1), pages 1-68, February.
  • Handle: RePEc:now:fntent:0300000031
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    Cited by:

    1. Driouchi, Ahmed & Gamar, Alae, 2014. "Hofstede’s Cultural Indicators, Knowledge Economy and Entrepreneurship in Arab Countries," MPRA Paper 58731, University Library of Munich, Germany.
    2. Marco Vivarelli, 2013. "Is entrepreneurship necessarily good? Microeconomic evidence from developed and developing countries," Industrial and Corporate Change, Oxford University Press, pages 1453-1495.
    3. Dinopoulos, Elias & Unel, Bulent, 2015. "Entrepreneurs, jobs, and trade," European Economic Review, Elsevier, vol. 79(C), pages 93-112.
    4. Aparicio, Sebastian & Urbano, David & Audretsch, David, 2016. "Institutional factors, opportunity entrepreneurship and economic growth: Panel data evidence," Technological Forecasting and Social Change, Elsevier, pages 45-61.
    5. Jolanda Hessels & André Stel, 2011. "Entrepreneurship, export orientation, and economic growth," Small Business Economics, Springer, pages 255-268.
    6. repec:eee:techno:v:68:y:2017:i:c:p:44-55 is not listed on IDEAS

    More about this item

    Keywords

    Development economics; Entrepreneurship; Import substitution; Export promotion; Entrepreneurship; Development economics; Technology transfer; Foreign direct investment;

    JEL classification:

    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

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