Business groups and entrepreneurship in developing countries after reforms

Murali D.R. Chari and Jaya Dixit

Journal of Business Research, 2015, vol. 68, issue 6, 1359-1366

Abstract: Drawing from the literature on markets and market development we develop hypotheses on the startup and growth of formal business by business groups relative to independent entrepreneurs after reforms. We then test the hypotheses in a large sample of firms that were started up after reforms in one large developing country—India. Findings show that (a) the likelihood of formal business startup by business groups, relative to independent entrepreneurs, declines with market development following reforms, (b) the likelihood of formal business startup by business groups, relative to independent entrepreneurs, is greater in industries privatized by reforms and in industries with greater foreign firm presence, and (c) formal businesses started by business groups experience greater growth than formal businesses started by independent entrepreneurs.

Keywords: Business groups; Reforms; Entrepreneurship; Developing countries; Market development; India (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jbrese:v:68:y:2015:i:6:p:1359-1366

DOI: 10.1016/j.jbusres.2014.12.006

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