Entrepreneurship in developing countries : is entrepreneurship an adequate tool for developing countries to drive economic growth and bear develoment ?

Abstract

The aim of this thesis is to examine whether entrepreneurship is an adequate instrument for developing countries to drive economic growth and promote economic development. The theory of economic growth and development shows that productive entrepreneurship is important to increase productivity and promote structural economic transformation when a sufficient institutional framework is in place. Empirical evidence of the impact of entrepreneurship on economic growth and development is difficult to establish and leads to ambiguous results. It has been shown that developing countries cannot generate growth and development from their high rates of entrepreneurial activity. It is found that only jobs that create "high-growth entrepreneurship" have a positive impact on economic growth. It is shown that institutional improvements and well-targeted policies could help developing countries to generate more growth-oriented entrepreneurship.