Entrepreneurial Business Opportunities in Developing Countries

970 Words 4 Pages
A greater level of entrepreneurial business opportunities will exist in a poor, developing economy, rather than in a rich, developed economy because the needs and opportunities are more widespread, they have a different and greater cultural awareness, and have the opportunity to assess industries that have a high level of market risk before entering them. Although there are many factors that can affect entrepreneurship in these countries and prevent entrepreneurship form existing like a lack of finance, difficulty recruiting, a lack of innovation, high barriers to entry and issues with their government.
There are 5 factors that are necessary for entrepreneurship to exist these are an individual - the entrepreneur themselves, an
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Ashok Khosla the former director of the United Nations Environment said in an interview that “In the case of my social enterprise, Development Alternatives in India, we had to create a whole complex of organisations some of which were supported by public and philanthropic funds to produce new technologies and products which could then be sold at reasonable prices since the Research & Development costs had already been taken care of.” (Khoshla, 2011)
Other issues that need to be overcome by entrepreneurs is recruiting and assembling people to work in a job that is underpaid, due to the profits in a new organisation not being very high is often very difficult. The barriers to entry are very high in developing countries as well because the entrepreneurs often need to create their own infrastructure, business linkages and support systems that large firms in developed countries often take for granted, and finally entrepreneurship is not well understood by the governments and private sectors in developing countries and in turn become difficult to deal with. (Khoshla, 2011)
The main factor and the most obvious that affects entrepreneurship is the lack of capital and financial innovation to get the venture up and running. Many people in these countries that want to embark on an entrepreneurial venture lack the necessary capital to start their business due to having limited personal savings, because of this they need to source external financing which

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