Entrepreneurial Finance in Developing Countries: The Experience of the BRICS after the Global Crisis
In the aftermath of the 2008 global crisis, the main obstacles to the sustainability of entrepreneurship in developing countries have been: i) high tax burden, ii) little nvestment in technological resources, iii) insufficiency of capital for investment and difficulties to obtain credit and access to capital markets, iv) ignorance of the market, v) ineffective management, vi) interdependence between the private and business affairs, vii) lack of standardization and integration with trading partners, viii) difficulty to access foreign markets, ix) absence of control in processes and results, x) not specialized workers; xi) competition pressures from the informal market. Following the guidelines of the Global Entrepreneurship Monitor research on entrepreneurship, this paper aims to present and analyze the main features of the recent evolution of the entrepreneurial environment in the BRICS (Brazil, Russia, India, China and South Africa) with regard to the role of entrepreneurial finance, that is to say, the availability of credit. Taking into account the social and economic relevance of entrepreneurship in developing countries , further research is needed on how the absence of economies of scale, entrepreneurial financial challenges and management gaps are intertwined. Con sidering this background, this paper states that the resilience of entrepreneurs among small firms in the context of globalization requires the consolidation of specific competitive financial advantages to support sustainable growth and profitable performance.
Entrepreneurship, developing countries, BRICS, entrepreneurial finance, small business.