Inderscience Publishers

Constraints faced by entrepreneurs in developing countries: a review and assessment

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This paper reviews, summarises and ranks the constraints faced by entrepreneurs in developing countries, from an entrepreneur’s perspective at a macro level. Given that, developing countries face resource constraints for creation of favourable policy environment for entrepreneurs, the policy makers need to prioritise the allocation of their scarce resources. Keeping in consideration this concern, the paper develops a simple ‘executable’ framework for the policy makers. While financial constraints and constraints due to business, economic and political environment emerged as major obstacles from an entrepreneur’s perspective, infrastructural constraints emerge as a vital constraint from the policy maker’s perspective.

Keywords: developing nations, entrepreneurship, entrepreneurial constraints, micro, small and medium enterprises, MSMEs, small and medium enterprises, SMEs

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