Heterogeneity in entrepreneurship in developing countries: Risk, credit, and migration and the entrepreneurial propensity of youth and women

Dileni Gunewardena and Abdoulaye Seck

Review of Development Economics, 2020, vol. 24, issue 3, 713-725

Abstract: Promoting youth and female entrepreneurship is crucial to inclusive growth and the future economic and social prospects of developing countries. Evidence tends to suggest that young and female entrepreneurs are in a minority, and the extent and generating mechanisms of this outcome tend to be country‐specific. This collection of papers brings together recent empirical contributions exploring key drivers of this heterogeneity entrepreneurial propensity of youth and female in the context of a group of countries in Africa, Latin America, and the Middle East, paying special attention to the role of and issues relating to access to credit, attitudes to risk, and migratory status. A common thread in all the papers is the effective role of risk, uncertainty, and asymmetric information in the determination of entrepreneurship and in the demand for and allocation of credit when potential entrepreneurs are from specific groups, that is, women, indigenous women, women and youth in conflict and post‐conflict situations, and migrant youth. Based on these results, the papers explore various challenges in the implementation of public policies designed to promote entrepreneurship within these specific segments of the population.

Date: 2020
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