Entrepreneurship practice in developing countries: A look at some distinctive attributes

Abstract

The Global Entrepreneurship Monitor (GEM) has set the agenda for researching the ±=k differences between entrepreneurship in developed and developing countries. Particularly significant has been the emergence of the GEM 2003 Executive report (Reynolds et al 2004) that has helped us understand the diversity in the formation of new firms in developed and developing countries. Entrepreneurship in developing countries is distinctive from that practised in more developed countries. A better understanding of these distinctions is critical to policy formulation and private sector development in developing countries. Of particular interest are new and growth-oriented enterprises, which have a greater capacity to create sustainable economicgrowth than micro enterprises or long-established SMEs with limited growth prospects. The purpose of this paper is to identify some of the distinctive attributes of entrepreneurship in developing countries that either help to improve the probability of success or hold back growth-oriented firms.