Responsible entrepreneurship in developing countries : understanding the realities and complexities

Azmat, Fara and Samaratunge, Ramanie 2009, Responsible entrepreneurship in developing countries : understanding the realities and complexities, Journal of business ethics, vol. 90, no. 3, pp. 437-452, doi: 10.1007/s10551-009-0054-8.

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Title Responsible entrepreneurship in developing countries : understanding the realities and complexities
Author(s) Azmat, FaraORCID iD for Azmat, Fara
Samaratunge, Ramanie
Journal name Journal of business ethics
Volume number 90
Issue number 3
Start page 437
End page 452
Total pages 16
Publisher Springer
Place of publication Dordrecht, Netherlands
Publication date 2009-03-25
ISSN 0167-4544
Keyword(s) developing countries
responsible entrepreneurship
scale individuals entrepreneurs
social responsibility
Summary 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.
Language eng
DOI 10.1007/s10551-009-0054-8
Field of Research 150304 Entrepreneurship
150314 Small Business Management
150303 Corporate Governance and Stakeholder Engagement
Socio Economic Objective 970115 Expanding Knowledge in Commerce, Management, Tourism and Services
HERDC Research category C1 Refereed article in a scholarly journal
Copyright notice ©2009, Springer
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Created: Thu, 29 Oct 2009, 16:41:41 EST by Lee-Ann Stones

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