
Contents
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Introduction Introduction
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Definitions and functions of the entrepreneur Definitions and functions of the entrepreneur
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Definitions Definitions
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Insights from recent research on entrepreneurship Insights from recent research on entrepreneurship
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Motivations and functions of entrepreneurs Motivations and functions of entrepreneurs
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The embeddedness of entrepreneurship (in social and economic networks) The embeddedness of entrepreneurship (in social and economic networks)
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Evolution of informal networks into formal business activity Evolution of informal networks into formal business activity
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The role of SMEs and business start‐ups The role of SMEs and business start‐ups
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Policies for entrepreneurship in DCs Policies for entrepreneurship in DCs
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Policies to reduce and reform government bureaucracy Policies to reduce and reform government bureaucracy
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SME policies as entrepreneurship policies SME policies as entrepreneurship policies
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Venture capital policies Venture capital policies
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Successful firm‐level growth in East and South East Asia Successful firm‐level growth in East and South East Asia
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The nature of latecomer technological progress The nature of latecomer technological progress
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The role of small firms The role of small firms
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Entrepreneurship within TNC subsidiaries Entrepreneurship within TNC subsidiaries
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Policy directions Policy directions
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Conclusion Conclusion
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Appendix 1: The Washington Consensus Appendix 1: The Washington Consensus
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Notes Notes
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References References
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18 18 Latecomer Entrepreneurship: A Policy Perspective
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Published:October 2009
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Abstract
The conventional view of the entrepreneur as a risk-taking innovator and developer of new technology has been highly influential in modern policies towards entrepreneurship in developing countries (DCs). This chapter challenges such a conventional “Schumpeterian” view and the policies which arise from it, especially those which encourage an increase in small firm entrance as a source of entrepreneurship. In contrast with developed economies, in DCs entrepreneurship should be understood within the context of latecomer catch-up, behind the innovation frontier, and of technology acquisition from abroad. In such circumstances, entrepreneurship is largely embedded in existing enterprises of all sizes as well as the subsidiaries of transnational corporations. Thus, policies aimed at fostering entrepreneurship come together policies targeted at strengthening the domestic industrial structure and the managerial capabilities it embodies.
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