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

UTSA College of Business Center for Global Entrepreneurship Working Paper No. 1

10 Pages Posted: 15 Jun 2005

See all articles by David C. Lingelbach

David C. Lingelbach

Stevenson University; Johns Hopkins University

Lynda De La Vina

University of Texas at San Antonio

Paul Asel

International Finance Corporation

Date Written: March 2005

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.

Keywords: Entrepreneurship, small and medium enterprises, developing countries

JEL Classification: M13, O1, O31, O57

Suggested Citation

Lingelbach, David C. and De La Vina, Lynda and Asel, Paul, What's Distinctive About Growth-Oriented Entrepreneurship in Developing Countries? (March 2005). UTSA College of Business Center for Global Entrepreneurship Working Paper No. 1. Available at SSRN: https://ssrn.com/abstract=742605 or http://dx.doi.org/10.2139/ssrn.742605

David C. Lingelbach (Contact Author)

Stevenson University ( email )

100 Campus Circle
Owings Mills, MD 21117
United States

Johns Hopkins University ( email )

720 Rutland Avenue
Baltimore, MD 21205-2196
United States

Lynda De La Vina

University of Texas at San Antonio ( email )

6900 North Loop 1604 West
San Antonio, TX 78249
United States

Paul Asel

International Finance Corporation ( email )

2121 Pennsylvania Avenue, NW
Washington, DC 20433
United States

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