Microentrepreneurship in Developing Countries
This article reviews the recent literature in economics on small-scale entrepreneurship ("microentrepreneurship") in low-income countries. Major themes in the literature include the determinants and consequences of joining the formal sector; the impacts of access to credit and other financial services; the impacts of business training; barriers to hiring; and the distinction between self-employment by necessity and self-employment as a calling. The article devotes special attention to unique issues that arise with female entrepreneurship.
I thank Akhila Kovvuri and Jamie Daubenspeck for excellent research assistance. I also thank the Private Enterprise Development in Low Income Countries research initiative for financial support. The views expressed herein are those of the author and do not necessarily reflect the views of the National Bureau of Economic Research.