ABSTRACT
This chapter discusses the links between the creation of new businesses and the impact on economic development. One of the main conclusions drawn from this study is that entrepreneurship is not an effective mechanism for promoting economic development in low-income countries. One of the key outcomes of this overview of the policy literature is that there are substantial variations in the links between nascent entrepreneurship and the stage of economic development. Post-war ‘industrial policy’ in the UK concentrated on those larger organizations believed to typify ‘modern’ economies. Gradually, during the 1960s and 1970s there was recognition that the successful post-war economies of Germany and Japan had thriving small business sectors. The underlying principle of this book is that nascent entrepreneurs must make the best of the resources that they have without seeking external funding from banks, venture capitalists or business angels.
