1
Introduction
Little research exists
about
→
entrepreneurship in developing
countries
because of the focus on developed countries (Dana,
2004). In developing countries, it is often assumed
that there is a lack of entrepreneurial culture and
→
entrepreneurship spirit
(Ghanem, 2013). This assumption leads to people
thinking that the lack of entrepreneurial activities
is because of the political and social environmental
(Morris et al., 1996). Whilst this may be the case
in some developing countries,
entrepreneurship can be measured in other ways
including having a social conscience and valuing
→
inspirational business
leadership
(Falck et al.,2012).
Entrepreneurship is
important in developing countries as it helps a
country to grow economically and stimulate
→
entrepreneurial
activity (Parker, 2009). Part of this stimulation is
included in the number of people engaged in or
planning to start their own business (Douglas and
Shepherd, 2002).
New business development is linked to how
individuals make decisions and engage in
→
business opportunities
as part of their entrepreneurial progress. In some
developing countries, governments can directly or
indirectly enhance and inhibit individuals engaging
in entrepreneurial activity by influencing the
business environment (Dana, 1993). This
government influence is an important determinant of
whether country will transition from developing to
developed country status.
Entrepreneurial
activity involves the creation and utilisation of
positive opportunities (Naude et al., 2011). Most
entrepreneurs
recognise opportunity by being
→
innovative
or devising
→
new combinations
of products, services or processes (Dana, 1993). In
developing countries, it is important to understand
how the long term sustainability of a country is
derived from the ability to be entrepreneurial and
continually innovate in order to stay globally
→
competitive.
The aim of this paper
is to highlight the need for more research on
entrepreneurship in developing countries. In order
to do this, the literature on small and medium-sized
enterprises (SMEs)
in developing countries is reviewed that leads to a
discussion of the importance of collaborative
entrepreneurship in emerging economies.
→
Strengths and Weaknesses of SMEs
A number of
suggestions for future research in the developing
world context are stated including the importance of
→
innovation
and
→
creativity
for
→
business success.
The next section will
further discuss how entrepreneurship occurs in
developing countries by
focusing on SMEs.