TY  - JOUR
AU  - Munshi,Kaivan
TI  - From Farming to International Business: The Social Auspices of Entrepreneurship in a Growing Economy
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 13065
PY  - 2007
Y2  - April 2007
UR  - http://www.nber.org/papers/w13065
L1  - http://www.nber.org/papers/w13065.pdf
N1  - Author contact info:
Kaivan Munshi
Professor
Department of Economics
Brown University
Box B/ 64 Waterman Street
Providence, RI 02912
Tel: 401-863-9331
Fax: 401-863-1970
E-Mail: munshi@brown.edu
AB  - Entrepreneurship has been traditionally concentrated in the hands of a few small communities in most developing economies. As these economies restructure, it is evident that these communities will be unable to satisfy the increased demand for new entrepreneurs. The analysis in this paper suggests that new business networks will compensate for the weak family background of first-generation entrepreneurs under some circumstances, supporting occupational mobility even in industries with significant barriers to entry. Using new firm-level data on the Indian diamond industry, the empirical analysis documents the important role played by an underlying community network in the expansion from agriculture to international business in one historically disadvantaged community over the course of a single generation.
ER  -