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LOCAL ENTREPRENEURSHIP AND GLOBAL LINKAGES: ENABLING CONDITIONS AND CONSTRAINTS

LOCAL ENTREPRENEURSHIP AND GLOBAL LINKAGES: ENABLING CONDITIONS AND CONSTRAINTS
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What do entrepreneurs need in order to invest successfully in manufacturing? At a basic level, particularly if they are traders thinking about moving their capital into a fixed investment, they need a political and economic environment with a certain degree of stability and predictability and some incentives, or at least the absence of strong disincentives for investment. They also need good infrastructure: roads, ports, a constant supply of electricity and water, and reliable telecommunications. On an institutional level, they need contract enforcement and security of property. This can be supplied by the state, or by informal systems based on reputation or sanctions of exclusion. Finally, entrepreneurs are tasked with gathering the "inputs" to the production process: ideas and information about opportunities and markets, investment finance and working capital, sources for technology and inputs, and skilled personnel. In this section we consider the enabling conditions and constraints faced by local entrepreneurs in both regions. The section begins with a review of networks and clusters as institutions that strengthen entrepreneurs individually and collectively, continues with a discussion of relationships between entrepreneurs and the state, and concludes with a review of foreign investment links. We argue that different local groups have developed different histories of linkage to the global economy, to ideas and resources outside their locality, and to the state, and that this explains an important part of the ability of some groups to embark on dynamic industrialization.

By: Deborah Bräutigam
Local Entrepreneurship in Southeast Asia and Subsaharan Africa: Networks and Linkages to the Global Economy
School of International Service
American University
Washington, DC





LOCAL ENTREPRENEURSHIP AND GLOBAL LINKAGES ENABLING CONDITIONS AND CONSTRAINTS - To learn more about this author, visit United Nations University's Website.

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United Nations University
(Visit United Nations's Website) UNU is dedicated to the generation and transfer of knowledge, and the strengthening of individual and institutional capacities in furtherance of the purposes and principles of the Charter of the United Nations. The mission of UNU is to contribute, through research and capacity building, to efforts to resolve the pressing global problems that are a concern of the United Nations, its Peoples and Member States. In fulfilling this mission, UNU fosters intellectual cooperation among scholars, scientists, and practitioners worldwide — especially those in the developing world — and functions as: an international community of scholars; a bridge between the United Nations and the international academic community; a think-tank for the United Nations system; a builder of capacity, particularly in developing countries; and a platform for dialogue and new and creative ideas.

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Capitalism and Entrepreneurship in Southeast Asia and Subsaharan Africa in Comparative Historical Perspective 600 AD to 1970 or so
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Local Entrepreneurship in Southeast Asia and Subsaharan Africa Networks and Linkages to the Global Economy
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PROPOSITIONS HYPOTHESES AND CONCLUSIONS
LOCAL ENTREPRENEURSHIP AND GLOBAL LINKAGES ENABLING CONDITIONS AND CONSTRAINTS
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