The level of entrepreneurial activity is higher in emerging markets than in developed economies, driven by high levels of necessity entry and less daunting entry barriers, especially in the informal sector. However, a gap remains in our understanding of its extent and of the drivers of its change. This chapter addresses this gap by conceptualizing and providing evidence about the scale and nature of entrepreneurship in emerging markets. The chapter begins with an empirical analysis of entrepreneurship in emerging economies. In particular, it contrasts the way in which human capital is utilized by entrepreneurs in emerging market economies and in developed countries. The chapter goes on to the theme of human capital, bringing in theory, and considering entrepreneurship in emerging economies at the individual level as well as the role of entrepreneurs’ social capital in the emerging economy context. Furthermore, it considers the scale and impact of the repatriation of human and social capital from abroad, which is found to play an important role in entrepreneurship in many emerging economies, especially when considering innovation. The survey goes on to provide a macro-level analysis, with cross-country comparisons of the effects of institutions and finance on entrepreneurial activity in emerging markets. It concludes by suggesting avenues for future research.
|Title of host publication||The Oxford Handbook of Management in Emerging Markets|
|Editors||Robert Grosse, Klaus E. Meyer|
|Publisher||Oxford University Press|
|Publication status||Published - Mar 2019|
Bibliographical note'Entrepreneurship in Emerging Markets'. Saul Estrin, Tomasz Mickiewicz, Ute Stephan, and Mike Wright. The Oxford Handbook of Management in Emerging Markets, Edited by Robert Grosse and Klaus E. Meyer. Published online August 2018. https://dx.doi.org/10.1093/oxfordhb/9780190683948.013.21. Reproduced by permission of Oxford University Press (http://www.oxfordhandbooks.com/view/10.1093/oxfordhb/9780190683948.001.0001/oxfordhb-9780190683948-e-21)
- emerging economy
- international business