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The Human Development Index
• The limitations of GDP/GNP
• Does not take into account distribution of income in a population, region, between groups of people etc.
• Wellbeing does not relate solely to income
• I was listening to a programme on Radio 4 recently where it was claimed that the 62 wealthiest individuals on the planet own as much as the poorest 50%!
• Just last week I then heard it was the wealthiest 8!
• HDI as a more rounded approach to measuring/assessing development:
• First published in 1990 in the Human Development Report (UNDP, 1990)
1. A long and healthy life (longevity) [life expectancy at birth]
2. Education and knowledge [adult literacy rates] (now: mean years of schooling)
3. A decent standard of living [per capita GDP] (now: per capita GNI)
• The HDI simplifies and captures only part of what human development entails. It does not reflect on inequalities, poverty, human security, empowerment, etc. (http://hdr.undp.org/en/content/human-development-index-hdi)
Why study entrepreneurship in developing and emerging economies?
• We need to be careful with assumptions that what applies in developing economies can simply be transferred to other economies.
• It has been shown in other domains such as strategy that researchers should not assume that findings in a developed economy will be equally applicable in an emerging economy (Peng, 2000)
• Peng, M.W. (2000). Business strategies in transition economies . Thousand Oaks, CA: Sage Publications
• The growth in prominence of emerging economies on the global stage
• A major feature of the global economy during this time has been the liberalization of emerging economies and their integration into the worldwide economy (Aulakh and Kotabe, 2008).
• The largest of these economies (i.e. China, India, Russia, Brazil, Mexico, South Korea, Turkey, Indonesia, and Poland) now comprise over a third of the world’s 25 largest economies and are growing at around three times the pace of the advanced ones” (Kiss, Danis, & Cavusgil, 2012, p. 266).
• Aulakh, P., & Kotabe, M. (2008). Institutional changes and organizational transformation in developing economies. Journal of International Management, 14(3), 209-216.
• Kiss, A., Danis, W., & Cavusgil, T. (2012). International entrepreneurship research in emerging economies: A critical review and research agenda. Journal of Business Venturing, 27(2), 266-290.
What is our evidence base in relation to entrepreneurship in developing and emerging economies?
• “…entrepreneurship research can still be critiqued as almost exclusively focused on North American and European research sites. The exploration of domains outside of these two developed economic regions remains extremely limited. In particular, little is known of entrepreneurship in emerging economies: economies that are increasingly moving to market orientation and seeking to rapidly advance economically”(Bruton et al., 2008, p. 1).
• Bruton, G., Ahlstrom, D., & Obloj, K. (2008). Entrepreneurship in Emerging Economies: Where Are We Today and Where Should the Research Go in the Future. Entrepreneurship Theory and Practice, 32(1), 1-14.
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