Entrepreneurship in developing countries; usually a symptom of unemployment.

[el kaka22]

When you are in a poorer country, you have to come up with a way to make money that is more innovative because people do not have money, so you end up being able to sell them anything, is harder. But this is why in those nations online businesses are becoming more popular, because that way, you can for example have a website with ads, and make money from google, and not from your fellow poor countrymen.

This is something that many nations should focus on, if you are a poor nation, focus on three things and you are going to be fine. First focus on agriculture, make sure people can eat for very cheap, secondly focus on energy, do not be depending on other nations way too much, and try to have your own grid, and lastly startups, because if you have websites and online business that takes money from other nations and bring it to your nation then you will do great.

[Rubuchi]

The problem is that for developing or poor countries, the easiest way to start a business is to sell essential goods and services-hair salons, clothing repairs, bread, meat, kerosene, and similar low-cost goods and services (which must be affordable) with regular demand. Innovative solutions typically require additional costs and lack an established consumer base, and in “poor markets,” such a base may either fail to emerge at all or emerge only after a very long time, which is unacceptable 

you are right about these essential goods and services. The one that plays out in my neighborhood a lot is the likes of laundry and selling of food. Food vendors are littered everywhere in my neighborhood and many of them have customers who come to patronize them for one thing or the other. Here even some security guards are also into laundry jobs as side hustles. Entrepreneurship as a profession might not be resultant effect of unemployment here but what we call side hustles is one of the biggest industry right now which mostly are as a result of unemployment or underemployment or underpaid employees and so on. You will see a civil servant here hustling one job to another, the same with other employees who are finding it difficult to settle their bills due to their underpaid salaries and inflation in the economy.

[boyptc]

That's actually a good sign that there's a progress in a country when there are a lot of entrepreneurs. Because they're not only employing themselves but they also have the capacity to employ others.

A bad sign or a symptom of high unemployment rate isn't entrepreneurship but, you'd see citizens migrating on other countries just to find jobs.

[Accardo]

That's actually a good sign that there's a progress in a country when there are a lot of entrepreneurs. Because they're not only employing themselves but they also have the capacity to employ others.

A bad sign or a symptom of high unemployment rate isn't entrepreneurship but, you'd see citizens migrating on other countries just to find jobs.

Small businesses strengthens the economy of a nation for employing labor and building products and services that solves real time problems. The US government is currently celebrating the small business week, and it's really huge, too many supports from congress men, Secretary of labors, and Senators were recorded yesterday, most of which was pointing at entrepreneurs as the pillar of the nation. While unemployment rate still goes higher accross the world, entrepreneurship is the symbol of people with great ideas and initiatives, than mere unemployment in developing nations, it's what built America to where it is right now, so, saying it's as a result of unemployment is wrong, business owners do something different, they hire people and give the nation a hope of growing further with just the brain and intellect of two friends fresh out of college, looking to try a new innovation out.

[Satofan44]

I don't know practice in other country, but in my country for micro business credit, the requirement is not too difficult, as long as our business has running for six month, those businesses can get credit around USD 650 - USD 31.000 without collateral or with collateral below the debt value. Paper work simple, only standard bussiness paper. Many new business man also use credit card cash withdrawal in some merchant for first capital and pay instalment before bill print date to avoid interest. But i don't think starting business using loan are wise, because even there are what we call productive loan but debt that doesn't match cash flow is a big problem. Before taking a loan need to consider business scale, cashflow projection and also scalable risk. Many businessmen now, especially in my country take debt to cover up the ambiguity of the business model before get or to get market validation.

Good example, thanks for bringing a real one up. As you can see a lot of the posts here are generic and made up nonsense. It has never been easier to get capital as it is these days, and there are even various entities from which money can be borrowed that are not banks. With them it is even easier to get money although it comes at a higher costs. Nevertheless, that disproves any claims that access to money is hard. Someone can find examples of some shithole where nothing is developed including the finance industry, but such examples never disprove the trend -- which people who don't know how to think correctly do not get. There are always going to be such places, but the prevalent situation is such that borrowing is easier than ever.

I agree entrepreneurship does not need big capital it just need our action, our spare time and use any resources near our house, but there are some businesses that are hard to start without significant money such as manufacture, distribution services, retail inventory, etc. I think spare time distribution also not equivalent for each person, will be great if we can do coding until night after work, but some people after work they must commuting in some hours, take care children, doing shift work, or help celan the house, not everyone has the same amount of time capital. From my observation some businesses failed  not only because laziness but because wrong timing, too low margin, cashflow shortage and market has not yet formed.

We are mostly in agreement. The lack of nuance in writing by other users shows a lack of knowledge and education among others. I can think of all sorts of examples where innovating does not require almost any money at all, definitely not any kind of borrowing from lenders. Here are 2 from completely different industries. Software innovation does not require any cost at all, in most cases not even with the renting of cheap VPSes until the prototype is at a more mature case. In the other hand you can have cooking. You can try to create an unique type of cake that is not present in your local market and that would demolish the competing products if successful. No money borrowing is needed unless you want to make a ridiculous amount of cake per day, which is not going to happen unless it is a full time venture. Similarly, you can try crafting any kind of product using basic materials in order to solve some things that are super basic. Often we will find products in the USA that solve basic problems, but these products may not be for sale at all in 3rd world countries. Get skills, start working and stop whining that should be the key idea.

In your argument about time, I will disagree in this way. You are onto something, but in most cases it is not about spare time distribution -- it is about time management skills. A person working a basic 8 hours per day 5 days per week job can delude himself that he is busier than Elon Musk if he is retarded enough and has terrible time management skills. Most people have zero time management skills, and even if they are familiar with this term they think that you suddenly become competent in it simply by being aware of it -- or that you can get competent with it by simply doing it sometimes. Once you become efficient in managing your time, spare time starts appearing out of nowhere.   I didn't want to bring up any examples because the examples are so basic and everywhere that it is pointless to bring it up. Fewer than 10% of humans or even less have time management skills, but they will quickly resort to complaining about a lack of time and being busy, bbut not busy enough to watch some useless show or movie of course. 

[Agbamoni]

you are right about these essential goods and services. The one that plays out in my neighborhood a lot is the likes of laundry and selling of food. Food vendors are littered everywhere in my neighborhood and many of them have customers who come to patronize them for one thing or the other. Here even some security guards are also into laundry jobs as side hustles. Entrepreneurship as a profession might not be resultant effect of unemployment here but what we call side hustles is one of the biggest industry right now which mostly are as a result of unemployment or underemployment or underpaid employees and so on. You will see a civil servant here hustling one job to another, the same with other employees who are finding it difficult to settle their bills due to their underpaid salaries and inflation in the economy.

The modern name for a side hustle is being a "multiple business owner". In recent years, one source of income doesnt foot our bill and allows us to set a financial plan for the future. To be able to cover rent, feeding, security, and transportation costs, savings and investments, a person needs more than one job. This is why people take two or three jobs so they can meet their responsibilities. This is very common in the world today because business owners and private companies want cheap laborers. Unfortunately, some people will do the job without mind the low pay.

[Miles2006]

Hence we tend to see real entrepreneurship in developed countries.

Everything has to depend on the entrepreneur; most times, it's not only about the location, but also what we are set to do at each of the locations we are found. Some people have a good business strategy that does not limit them to where they are, as we all need entrepreneurship in both developed and developing countries, because it serves as the means through which people in society can survive by what has been produced from the economy.

This is right, in as much as location play a big role in this case it still depends totally on the entrepreneur, entrepreneurs still do well in a developing country just depends on the goal and target besides people still always want to buy and make use of product so it does depend on location although op is right from a different view, comparing the profit made between two competitors in a different location when the other is located in developed country and the other in a developing country definitely profit made differ due to high population and demand.

[Samlucky O]

I developed countries, entrepreneurship surfaces as a result of ideas, desires a willingness to deliver a product or service to satisfy needs and wants, an improved market share, and as a result, profit maximization.

In developing countries, the reverse is case, entrepreneurship is usually ventured into as a result of unemployment.

I don't think so, both have similar goal but the environment they find themselves makes it looks like one is different from another. The main priority of every entrepreneur is to make profit regardless of the services they render. developed countries have opportunity and access to loan and have more advantage than the developing countries, while in the other hands in developing country do t have access to all that. you need to struggle to survive because you don't have access to many things that will will help you achieve your dream.

You then tend to see too many businesses begin to compete for the same demand, there's little or no innovation in these kind of case, a lot of duplication of the same businesses in this case.

I still think you are wrong, a place of competition is a place to strive and work your way out, it gives room for research and innovation being productive and become the best in your business brand. A lot of popular name and brand are mostly in developing countries because a place of competition is a place to build you up to bring the best in you.

[Hewlet]

That's actually a good sign that there's a progress in a country when there are a lot of entrepreneurs. Because they're not only employing themselves but they also have the capacity to employ others.

A bad sign or a symptom of high unemployment rate isn't entrepreneurship but, you'd see citizens migrating on other countries just to find jobs.

Makes sense but most times, an Increasing shift into becoming self employed and focusing too much on the entraprenural section is an indicator that the government isn't working and that people are generally looking for an alternative to systems that are not even working to start with.

Migration is also a function of a disfunctional system all of which emanates from the fact that the government has failed left citizens with 💯 responsibility to themselves.

[AmaGold70]

I developed countries, entrepreneurship surfaces as a result of ideas, desires a willingness to deliver a product or service to satisfy needs and wants, an improved market share, and as a result, profit maximization.

In developing countries, the reverse is case, entrepreneurship is usually ventured into as a result of unemployment.

You then tend to see too many businesses begin to compete for the same demand, there's little or no innovation in these kind of case, a lot of duplication of the same businesses in this case.

Hence we tend to see real entrepreneurship in developed countries.

Unemployment is not really the reason why we have entrepreneurs in the developing countries. No country will grow, and develop well without the activities of the entrepreneurs, and the private sectors, and this happens in both the developed, and the developing countries. Unemployment is everywhere even in the developed countries, only that it is drastically reduced.
Someone who is poor, and unreasonable cannot become an entrepreneur, because one of the qualities or identity of an entrepreneur is innovation, and such people are found in both the developed, and underdeveloped countries.
Sometimes government policies could be the reason why entrepreneurs do well, but when the policies of any country does not favour any entrepreneur, the only option is to move to a place where there policies can favour your business, weather developed or underdeveloped country.

[Etranger]

In developing countries, more advanced ideas about making money do tend to emerge, but I would not connect this entrepreneurial mindset exclusively to difficult economic conditions. For me personally, as someone coming from a country with an extremely difficult economy, what matters much more is having access to global opportunities while being able to work in fully remote positions.

I have been rejected from jobs many times not because of a lack of skills or experience, but simply because I am in the “wrong” location and companies do not really want to deal with it due to unclear payment conditions, taxes, insurance, and similar issues. And yes, this forces you to constantly come up with something new and develop skills strong enough to compensate for this location-based disadvantage.

[jaberwock]

In developing countries, more advanced ideas about making money do tend to emerge, but I would not connect this entrepreneurial mindset exclusively to difficult economic conditions. For me personally, as someone coming from a country with an extremely difficult economy, what matters much more is having access to global opportunities while being able to work in fully remote positions.

I have been rejected from jobs many times not because of a lack of skills or experience, but simply because I am in the “wrong” location and companies do not really want to deal with it due to unclear payment conditions, taxes, insurance, and similar issues. And yes, this forces you to constantly come up with something new and develop skills strong enough to compensate for this location-based disadvantage.

I would say unemployment is the reason why you looked at it that way. Because if there were a lot of jobs available for you, and you could have made money easily with that, you would not really look into starting your own business.

This is not even about developing or developed nations, even in the USA, which is the biggest economy in the world, there is a huge unemployment issue and they told our generation to get degree in college, we did, and now it worths nothing. So most people are looking to start their business so they can make some money instead of being unemployed. Plus online world made this easier, faceless insta videos, or youtube, or just selling something on ebay, like you could do a million ideas.

[Doll2233]

I developed countries, entrepreneurship surfaces as a result of ideas, desires a willingness to deliver a product or service to satisfy needs and wants, an improved market share, and as a result, profit maximization.

In developing countries, the reverse is case, entrepreneurship is usually ventured into as a result of unemployment.

You then tend to see too many businesses begin to compete for the same demand, there's little or no innovation in these kind of case, a lot of duplication of the same businesses in this case.

Hence we tend to see real entrepreneurship in developed countries.

No doubt you have made an excellent point. And  so many developed countries are using the concept of entrepreneurship as a survival strategy for them. Job market is exausting these days normal people are fed up and gave upon the idea of finding jobs or those who have jobs are low paying it is becoming difficult for them to survive in this situation or people find gap in the market and they left their jobs to start a business. In developing countries entrepreneurship is based on necessity when their local market fails to make a product or provide a particular service for their customer and they find a gap in the market they create there on product and start selling it because of all this the market becomes more crowded. If these types of businesses get more exposure they can definitely create their own brands.

[coin-investor]

Hence we tend to see real entrepreneurship in developed countries.

Because there is a market and the consumers have money to spend, take New York City as an example, do you know that it will take 23 to 70 years before you can dine in all the restaurants there?
There are over 20000 eateries or restaurants there. If there is a market and consumers, it's easy to launch a business, even if there are already many players in the market.
The developed countries have purchasing power, so new markets and industries are being created.

[Etranger]

Plus online world made this easier, faceless insta videos, or youtube, or just selling something on ebay, like you could do a million ideas.

I disagree that the online world has made things easier. In my view, that might have been a fair assessment at the very beginning of the online boom, but now we are seeing the consequences, and I think it has actually made everything more complicated. First of all, it creates a distorted idea of what work is, and young inexperienced people are especially vulnerable to this, thinking that you can make millions just by selling your image. Some people do manage that, no doubt, but certainly not everyone who wants to. On top of that, there is a widespread belief that if you plan to work in the online space, you don't need to learn anything. And that is completely wrong, the need for education and self-discipline has not gone anywhere. Yes, it is easier to build a business that is not tied to local demand. But in return you automatically become a target for any regulations and restrictions, because that kind of business is very tempting for those who like to come up with new taxes.

[arwin100]

Plus online world made this easier, faceless insta videos, or youtube, or just selling something on ebay, like you could do a million ideas.

I disagree that the online world has made things easier. In my view, that might have been a fair assessment at the very beginning of the online boom, but now we are seeing the consequences, and I think it has actually made everything more complicated. First of all, it creates a distorted idea of what work is, and young inexperienced people are especially vulnerable to this, thinking that you can make millions just by selling your image. Some people do manage that, no doubt, but certainly not everyone who wants to. On top of that, there is a widespread belief that if you plan to work in the online space, you don't need to learn anything. And that is completely wrong, the need for education and self-discipline has not gone anywhere. Yes, it is easier to build a business that is not tied to local demand. But in return you automatically become a target for any regulations and restrictions, because that kind of business is very tempting for those who like to come up with new taxes.

This is really the misconception about online world and they think its easy to became successful there. In reality its the same and situation became more complicated especially for people don't have skills and confidence to deal with situations they are facing online.

Without discipline and skills also good education its hard to sustain their success online. The sad part is once they build a good online presence, they might get subject for more taxes and regulations since usually government always find ways to earn more income.

[Etranger]

Plus online world made this easier, faceless insta videos, or youtube, or just selling something on ebay, like you could do a million ideas.

I disagree that the online world has made things easier. In my view, that might have been a fair assessment at the very beginning of the online boom, but now we are seeing the consequences, and I think it has actually made everything more complicated. First of all, it creates a distorted idea of what work is, and young inexperienced people are especially vulnerable to this, thinking that you can make millions just by selling your image. Some people do manage that, no doubt, but certainly not everyone who wants to. On top of that, there is a widespread belief that if you plan to work in the online space, you don't need to learn anything. And that is completely wrong, the need for education and self-discipline has not gone anywhere. Yes, it is easier to build a business that is not tied to local demand. But in return you automatically become a target for any regulations and restrictions, because that kind of business is very tempting for those who like to come up with new taxes.

This is really the misconception about online world and they think its easy to became successful there. In reality its the same and situation became more complicated especially for people don't have skills and confidence to deal with situations they are facing online.

Without discipline and skills also good education its hard to sustain their success online. The sad part is once they build a good online presence, they might get subject for more taxes and regulations since usually government always find ways to earn more income.

Yes, exactly, that is precisely what I am talking about. There is nothing easy about working online. It is just as demanding a field, requiring responsibility, commitment, attention, and qualifications. What online does simplify is access to jobs that are not limited by your location or citizenship. That is something I genuinely value about online work, in my case it has been a real lifesaver. But every other aspect is exactly the same as in traditional offline work.

[Crypto_Timothy]

A developed country became developed when entrepreneur took it from developing to developed, but then I still get your point about the duplication because everyone would be trying to solve the same or similar problems but it's possible for that country to eventually graduate from developing to developed assuming these entrepreneurs do succeed and solve the problem.

[Cheema02]

In developing countries, more advanced ideas about making money do tend to emerge, but I would not connect this entrepreneurial mindset exclusively to difficult economic conditions. For me personally, as someone coming from a country with an extremely difficult economy, what matters much more is having access to global opportunities while being able to work in fully remote positions.

I have been rejected from jobs many times not because of a lack of skills or experience, but simply because I am in the “wrong” location and companies do not really want to deal with it due to unclear payment conditions, taxes, insurance, and similar issues. And yes, this forces you to constantly come up with something new and develop skills strong enough to compensate for this location-based disadvantage.

Yes, in developing countries almost all skillful individuals face the same challenge and that is to track opportunities because in developing countries opportunities are very less and competition is high. So even individuals have skills and talent and are deserving a good post then companies avoid to take them due to taxes and remote work policies. So such individuals that have skills to work globally when rejected then this situation makes a barrier and unfair conditions for them. But in other way these situations push individuals to make something special and creative. So individuals starts to learn more demanding skills and take step in freelancing and generate multiple way of sources for them. Majority difficulties converted into opportunities of success for individuals. Currently internet inhance opportunities but still many professionals from developing countries struggled to gain best opportunities.

[Rubuchi]

A developed country became developed when entrepreneur took it from developing to developed, but then I still get your point about the duplication because everyone would be trying to solve the same or similar problems but it's possible for that country to eventually graduate from developing to developed assuming these entrepreneurs do succeed and solve the problem.

I don’t really know much about those countries who rose from being developing nations to developed nation courtesy of entrepreneurs alone. Most countries I know is as a result of the government. The government is always a key driver in every development of any country or state or industry. It is the government that has the resources, the resources and authority to transform the economy of a country from a poor one to a steady growing one which will stand a test of strength and time for several years. However entrepreneurs also play a significant role as drivers too, but maybe second to the government as the government is what also gives them the enabling environment to thrive while they create the much needed opportunities to jobs and grow the economy of the country significantly especially picking from where the government must have stopped.