The determinants of entrepreneurship in developing countries

We address the question of what determines entrepreneurship in\ndeveloping countries. In particular, because of the influence that this may\nhave on the design of entrepreneurship policies, our main concern is\nwhether the determinants of entrepreneurship are the same and/or have\nthe same impact in developed and developing countries. To this end, we\ndiscuss the arguments put forward in the literature in support of the\nexistence of differences in the determinants of entrepreneurship between\ndeveloped and developing countries. We also analyse the results found in\nempirical studies on the determinants of formal firm entry (following the\nWorld Bank, our proxy of entrepreneurship) in developing countries and\ncompare these results with those typically found in developed countries.\nOur main conclusion is that policy makers in developing economies should\nbe careful when using evidence from developed countries to design\nentrepreneurship-promoting policies.\nKey words: entrepreneurship, developing countries.\nJEL: O1; O12; L26; M13