IZA/Kauffman Foundation Policy Panel: Entrepreneurship in Developing Economies

Organizers: Marco Caliendo (University of Potsdam and IZA), Alexander S. Kritikos (University of Potsdam, DIW Berlin and IZA), E. J. Reedy (Kauffman Foundation)
Location:Georgetown University Hotel & Conference Center, 3800 Reservoir Road, NW, Washington, DC 20057, USA; Room: H
Date:September 17, 2015

Event Manager:

Viola Hartmann (IZA)

Intro to the Policy Panel on “Entrepreneurship in Developing Economies”

Although the number of entrepreneurs in developed economies is small, they play a significant role. Entrepreneurs create new products based on technological breakthroughs – thus creating jobs and positively impacting economic growth where they live. On the other hand, in developing economies, while there are lots of entrepreneurs – at least when counting the self-employed – their contributions to economic growth are limited.

It is often argued that in the field of entrepreneurship the crucial difference between developed and developing economies is the level of regulation and corruption. The most productive entrepreneurs seem to respond to high regulatory barriers by moving to more innovation-friendly countries or by turning from productive activities to non-wealth-creating activities. Thus, to attract and encourage productive entrepreneurs, governments need to cut red tape and streamline regulations.

In this panel, we will discuss:
  • to what extent entrepreneurs are able to substantially influence economic development and wealth creation in an economy;
  • to what extent the regulatory environment in developed and developing economies explains the differences in outcomes, or whether other institutional factors are also important;
  • what can be done to enhance entrepreneurial creativity in developing economies;
  • why vested interests prevent regulatory reforms in many developing economies, and why few governments – in particular in transition economies – succeed in making such reforms;
  • who needs to take the lead in transforming developing economies so that entrepreneurs become “change agents” in the sense that their activities can be more productively exploited; and
  • whether there are any best practice models for such transitions.


Thursday, September 17:

        Welcome and Introduction
Alexander S. Kritikos (University of Potsdam, DIW Berlin and IZA)
Marco Caliendo (University of Potsdam and IZA)
Philip Auerswald (Kauffman Foundation and Global Entrepreneurship Research Network)
        Developing Economies - Evidence from the GLM-LIC Project
  Chair: Marco Caliendo (University of Potsdam and IZA)
13:30 - 13:40   Introduction to the GLM-LIC Project
David Lam
(University of Michigan and IZA)
13:40 - 14:05   Pamela Jakiela (University of Maryland and IZA)
  "Girls Empowered by Microfranchising: Estimating the Impacts of Microfranchising on Young Women in Nairobi"
14:05 - 14:30   Joan Hicks (University of California, Berkeley)
  "Start-up Capital for Youth: Assessing the Potential of Small Business Grants and Vocational Training in Kenya"
14:30 - 14:45   Coffee Break
14:45 - 16:15   Policy Panel: Entrepreneurship in Developing Economies

Moderation: Alexander S. Kritikos (University of Potsdam, DIW Berlin and IZA)

Antoinette Schoar (MIT Sloan School of Management and IZA)
John C. Haltiwanger (University of Maryland and IZA)
Xavier Gine (World Bank)
David Lam (University of Michigan and IZA)
16:15       Reception


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