Learn From Each Other on the Path to Growth

Those who manage companies in developing countries find themselves in a time of transition. Faced with the prospect of declining growth, small and young firms are leading the way forward from the previous, managed economic model toward an important new driver of growth: the entrepreneurial economy. Given that differences in growth rates in developing countries are related to differences in the speed with which these countries embrace entrepreneurial energy, the pressure is on to study effective ways of cultivating and managing this newly significant engine of growth. An economy based upon managing production requires very different conditions from one where entrepreneurship capital needs stimulating. It can even be that policies and institutions that made the managed economy successful are counterproductive in an entrepreneurial economy. Emerging economies provide many lessons. In many ways, these countries are familiar with entrepreneurship: most work a mix of old and new models. Therefore, we have an opportunity to observe those who are halfway there, including those who have faltered along the way. At the same time, those from emerging economies need to learn from their counterparts in developed countries how to manage more effectively the dual process of development and growth. Using examples, the author considers the factors that help cultivate entrepreneurial energy – and those that constrain it.
Collection: IESE (España)
Ref: ART-1818-E
Format: PDF
Number of pages: 8
Publication Date: Sep 15, 2010
Language: English, Spanish

Description

Those who manage companies in developing countries find themselves in a time of transition. Faced with the prospect of declining growth, small and young firms are leading the way forward from the previous, managed economic model toward an important new driver of growth: the entrepreneurial economy. Given that differences in growth rates in developing countries are related to differences in the speed with which these countries embrace entrepreneurial energy, the pressure is on to study effective ways of cultivating and managing this newly significant engine of growth. An economy based upon managing production requires very different conditions from one where entrepreneurship capital needs stimulating. It can even be that policies and institutions that made the managed economy successful are counterproductive in an entrepreneurial economy. Emerging economies provide many lessons. In many ways, these countries are familiar with entrepreneurship: most work a mix of old and new models. Therefore, we have an opportunity to observe those who are halfway there, including those who have faltered along the way. At the same time, those from emerging economies need to learn from their counterparts in developed countries how to manage more effectively the dual process of development and growth. Using examples, the author considers the factors that help cultivate entrepreneurial energy – and those that constrain it.
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Geographic Setting: Argentina; Bolivia; Brasil; China; Estados Unidos; India; Indonesia; México; Venezuela; Israel; Taiwán; Lituania; Letonia; Estonia

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"Learn From Each Other on the Path to Growth"