Entrepreneurship in Developing Countries

IV. 

New Policy for Entrepreneurship in Developing Countries  

 

 

This survey has reviewed the literature on the evolution of development policy 

from colonial-era policy to import substitution to export promotion and specifically the use 

of export processing zones.  Given the failure or poor performance of some of these 

economies for many developing countries, entrepreneurship is being explored as an 

alternative approach.   This research on entrepreneurship and development shows how 

demonstration and failure, knowledge and network externalities are affected by a range of 

issues in developing countries.  Based on this review, the study hypothesizes that 

economies which are able to generate more of these positive externalities will produce 

higher levels of entrepreneurial activities.