Challenges Faced By Developing Countries Essay
Entrepreneurship in emerging countries encounters a significant number of obstacles compared to developed countries. Challenges for entrepreneurs are different given the strong institutional voids that developing countries have.
A key player that interacts on a daily basis with any entrepreneur is the government. Given the fact that governments seek economic growth, the reduction of unemployment rates, and social welfare for the community (Riberiro-Soriano & Galindo-Martín, 2012), the relationship between, both the government and entrepreneurs, is in theory a win/win scenario; nevertheless this is not always the case.
Governments worldwide are increasingly recognizing the impact of entrepreneurship and are adopting an active role in fostering it. Introducing an entrepreneurial atmosphere frequently is determined by the political measures instilled (Riberiro-Soriano & Galindo-Martín, 2012). As a matter of fact, many governments find entrepreneurial activity as a tool to revitalize the economy, bringing with it increase in tax income, innovation, and future growth (Acs, 1996; Birch, 1979; Kirchhoff & Phillips, 1991; Romer, 1990; Audretsch & Keilbach, 2004; Bahmani, Galindo, & Méndez, 2012).
To this regard, policies on employment, technology, industry, legislation, government subsidies, education, taxation, and economy may have a direct influence on the outcomes of already established and new businesses (Zerbinati & Souitaris, 2005; Michael & Pearce II,…