Responsible Entrepreneurship in Developing Countries: Understanding the Realities and Complexities

Journal of Business Ethics 90 (3):437-452 (2009)
  Copy   BIBTEX

Abstract

Developing countries have recently experienced a burgeoning of small-scale individual entrepreneurs (SIEs) – who range from petty traders to personal service workers like small street vendors, barbers and owners of small shops – as a result of market-based reforms, rapid urbanisation, unemployment, landlessness and poverty. While SIEs form a major part of the informal workforce in developing countries and contribute significantly to economic growth, their potential is being undermined when they engage in irresponsible and deceptive business practices such as overpricing, sale of underweight or substandard products, or attempts to hoard goods, to name a few. Despite the growing interest in corporate social responsibility (CSR) initiatives of small businesses in developing countries, the SIEs have received almost no attention. To address this void in the literature, we explore the reasons for the less than optimal level of social responsibility demonstrated by some SIEs in developing countries. We do so by drawing upon the existing literature to develop a comprehensive framework of social responsibility of SIEs highlighting their unique characteristics and the different contextual factors that they encounter in developing countries. Based on this framework, we then present a set of propositions specifying the influence of these contextual factors such as business environment, cultural traditions, socio-economic conditions, and both international and domestic pressures on the business practices of SIEs. The framework offers an explanation for the lack of responsible entrepreneurship of SIEs and has important implications for promoting sustainable business practices in developing countries where businesses are striving hard to survive and compete.

Links

PhilArchive



    Upload a copy of this work     Papers currently archived: 76,215

External links

Setup an account with your affiliations in order to access resources via your University's proxy server

Through your library

Similar books and articles

Business Ethics in Developing Countries.G. J. Rossouw - 1994 - Business Ethics Quarterly 4 (1):43-51.
Entrepreneurship, Ethics, and the Good Society.George G. Brenkert - 2002 - The Ruffin Series of the Society for Business Ethics 2002:5-43.

Analytics

Added to PP
2009-03-28

Downloads
60 (#199,663)

6 months
1 (#449,220)

Historical graph of downloads
How can I increase my downloads?