From Farming to International Business: The Social Auspices of Entrepreneurship in a Growing Economy

52 Pages Posted: 27 Jun 2007 Last revised: 3 Nov 2014

See all articles by Kaivan D. Munshi

Kaivan D. Munshi

Brown University - Department of Economics

Date Written: April 2007

Abstract

Entrepreneurship has been traditionally concentrated in the hands of a few small communities in most developing economies. As these economies restructure, it is evident that these communities will be unable to satisfy the increased demand for new entrepreneurs. The analysis in this paper suggests that new business networks will compensate for the weak family background of first-generation entrepreneurs under some circumstances, supporting occupational mobility even in industries with significant barriers to entry. Using new firm-level data on the Indian diamond industry, the empirical analysis documents the important role played by an underlying community network in the expansion from agriculture to international business in one historically disadvantaged community over the course of a single generation.

Suggested Citation

Munshi, Kaivan D., From Farming to International Business: The Social Auspices of Entrepreneurship in a Growing Economy (April 2007). NBER Working Paper No. w13065. Available at SSRN: https://ssrn.com/abstract=986915

Kaivan D. Munshi (Contact Author)

Brown University - Department of Economics ( email )

64 Waterman Street
Box B
Providence, RI 02912
United States
401-863-9331 (Phone)
401-863-1970 (Fax)

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