ABSTRACT
Innovative entrepreneurship is a crucial contributor to economic growth in developing countries. Although an increasing number of studies address small business innovation, there is no established consensus on the factors influencing business innovation in developing countries. Furthermore, previous studies have frequently considered only one set of factors (most often the firm level). In this chapter, the authors develop a model of innovative entrepreneurship combining individual, firm-level, and contextual-level predictors. The chapter presents the results of a large-scale survey conducted among rural and urban entrepreneurs in Uganda. The findings show that entrepreneurs who are located in the rural area, who own long-established businesses, who are better educated, who are more proactive, and who have a higher degree of self-efficacy are the most likely to innovate.
