The Similarity Between Developing Countries: Africa, Asia and South America

Introduction

Developing countries lie mainly on the southern hemisphere and are spread throughout Africa, across Asia and South America. These countries have similar social economic diversity characterized by struggle, civil strife, poverty, and political instability. While some of these countries are developing and experiencing economic growth, others continue to plunge deeper into poverty and economic inertia. Most developing countries are having a society characterized by ethnic divisions. These divisions fault line is across the social, economic, and politics of the country (Krugman, & Elizondo, 1995).

  1. Low-level living is one aspect of these countries. World Bank and relief organization have pointed out the poverty and low earnings in these countries are extreme. The poor live in deplorable conditions. There has been rapid rural-urban migration leading to establishment of slum dwellings in towns and cities.
  2. Per-Capita National income is low such that is cannot support sustainable development. This parameter is a summary of a countries economic health. It is a summary of t gross income and the country’s population economic performance. Pre-Capita National income is a parameter of the country’s economics.
  3. Low-level productivity and unemployment is rampant in these countries. This is the major cause of poverty and under development in these countries. The companies over rely on donor funding and the west to initiate development. In fact, most socio-economic programs in these countries are under auspices of the west, NGO’s and UN funding (Krugman, & Elizondo, 1995).
  4. Over-population is characteristic of these countries. High population coupled with poverty brings under-development and poor services. Health services are very poor and security is questionable. Crime rates are high and mortality rate always increasing. Diseases plague the society with contagious illnesses becoming prevalent due to poor housing, sanitation, and lack of education (Krugman, & Elizondo, 1995).

Diversity in developing countries

These countries have invaluable wealth of natural resources, tourism attraction areas including forests, wild national parks, scenic beauty, and a robust cultural diversity. Culture is blamed for inhibiting socio-economic development in these countries. Cultural diversity is characteristic of these countries. African countries pride themselves as culturally diverse same as South American nations (Krugman, & Elizondo, 1995).

Political diversity in these countries is observed through West leaning political wings and others subscribing to Leftist political wings. Though the civil society is clamoring for democratic change, dictatorships are evident almost throughout these countries. Civil war and ethno-religious discord makes the political diversity profound (Krugman, & Elizondo, 1995).

The trends and major issues the socio-politics of the third world are mainly issues of development, food security, and empowerment. Focus on food production takes center stage after in the recent years, food problems seemed to cause strife in these countries. Weather pattern changes and other environmental factors have rendered third world countries insecure. With focus on the impoverished Sub-Saharan Africa, food security, community empowerment programs, and shift in socio-political paradigm shows progress as political goodwill begins to provide leeway to democracy and prospects of socio-economic booms (West, & Desai).

Political goodwill is becoming apparent due to mismatched expansion of regions, with some becoming more productive and other stagnating. Feeding the needy of these regions through cereal production has become one of the political issues with politicians playing a leading role in empowering people through informing them.

There are efforts to facilitate major expansion of potential within community level to meet demand for food. Politics have a vital role in developing a nation; it demystifies the ethno-socio divisions prevalent in third world countries. Feeding the people provides them with a solution to heir most urgent needs. When fed, the people can attempt to learn through education. Coupled with education projects, feeding the poor is providing a platform for making socio-economic change. An educated and well-fed society can focus on sustainable development. Demographically led socio-political change is truly providing farming everywhere with intensive food production solutions. This is a clear indication of a transforming society and political goodwill in creating sustainable development through food production (West, & Desai).

These trends in Sub-Saharan Africa could be used as models in other developing countries. This will facilitate poverty reduction and alleviation; create more need for education, and subsequent establishment of democracy and economic progress in these third world countries.

References

  1. Krugman, Paul, & Elizondo, Raul. (1995). Trade policy and the third world metropolis. Journal of Development Economics, 49.
  2. West, Julian, & Desai, Padma. (n.d.). . (2), Web.

Developed Countries and Developing Countries Interrelations

There are countries in the world which are economically developed and can afford a lot of things as compared to others. The disparity in development has led to the grouping of the world states in to two broad groups i.e. developed countries and developing countries.

Developing countries are faced by many challenges both economically and socially which makes most of the citizens to live below the poverty line. Due interrelations between states, some measures are being taken to ensure that the developing nations are also boosted in their economic endeavors.

Though international development has no unanimously accepted definition, attempts have been made to explain what it is. International development refers to steps being taken to ensure that developing countries raise the living standards of their citizens and to some extent alleviate the suffering that this people have to go through (Murray 2012).

It therefore holistically refers to the activities by the developed countries to developing countries that aim at enabling them to have long term self sustainability as far as economic development is concerned. It includes projects which are aimed at improving health, alleviating poverty, advancing education, infrastructure development, advocating for gender equality, disaster preparedness and human rights among others.

International development is different from humanitarian aid in that, while the later focuses on temporary solutions and alleviation of human suffering, international development looks at long-term solutions to these problems. In coherent with that, international development puts weight on capacity building, sustainability economic development, promotion of safety and rights based approach to economic problems (The economist 2012).

Basically the objective of international aid in international development is to place the recipient country in a position where it can be able to be self dependent in the end. On top of that, international development involves the funding of specific projects or a group of projects with a definite desired outcome and the monitoring of the said projects. According to the World Bank (2010), “The funds given for a particular project are supposed to be specifically for the designed purpose and can therefore not be reallocated”.

Several economic indicators can be used to measure international development, since the term is synonymous to human development but it is worth noting that the social aspect of development is a bit ambiguous to measure. The millennium development goals which were brought forward by the United Nations in the year 2000 may serve as yard sticks to checking the extent of development (Clark 2006).

Besides, there are various measures which can be used which include: National GDP, per capital income, infant mortality rates, poverty rates, literacy rates, unemployment rates etc. The social aspect can be measured by looking at various factors e.g. the level of democracy in a country, measuring the number of domestic violence cases reported over a given period and child labour preference rates (World Bank 2010).

Though much is done to alleviate extreme poverty and some forms of human suffering in developing countries, minimal or no efforts are made to ensure equality in wealth distribution in these countries.

Measuring development by applying the indicators nationally in many cases gives wrong information because the development might have taken place in a single part of the nation. Furthermore, some international aid comes with conditions to the recipient countries, who are to retaliate in one way or another which distorts the whole idea of international development (Horowitz 2011).

Each nation has natural resources which can enable its citizens lead a comfortable live, but due to lack of funds or technology these resources remain unutilized. Developed countries come in handy to help with the highly required inputs, which help the developing countries start off in their endeavors for self sustainability.

References

Clark, D. 2006, The Elgar Champanion to Development Studies, Edward Elgar, Northampton.

Horowitz, L. 2011, ‘Interpreting Industry’s Impacts: Micropolitical Ecologies of Divergent Community Responses’, Development and Change, vol. 42 no.6, pp. 1371-1391.

Wallis, W. 2012, ‘Move to Bring South Sudan Back to Talks’, Financial Times. Web.

The Economist 2012, ‘Global Public Goods’. Web.

World Bank 2010, World Development indicators, World Bank publications, Washington.

Is India Still A Developing Country?

Introduction

The development in India started more than sixty years ago, as it gained its independence in 1947. The country was in a really poor condition, but today the improvement can be observed. Of course, the situation has not changed yet, as the population diversity is glaringly obvious. Still, the plans for the future are made and put into effect, so the fact that India is working to become industrialized cannot be denied.

The question of India being a developing country aroused because the people who are investigating different fields connected with this issue (such as economics, urban development, etc.) are not still able to come to the common conclusion. Some of them mention that the process of development in India is rapid, and it covers numerous spheres. Thus, they underline that the rush in cities tends to resemble European and American ones. Still, they mention that the traffic is rather high, which causes lots of accidents. Others pay more attention to health and education but also cannot make a distinct conclusion. Akhil Paul believes that physical infrastructure in India is likely to reach its top very soon, as the country is rather concerned about it.

Unfortunately, he also claims that the majority of public places are not accessible for disabled people, which extends the discrepancy among the population. The representative of the International Youth Council thinks that India has to implement a range of changes as a nation before it passes over the label of the developing country. However, the steps made to cope with corruption and care for the women’s safety cannot be denied (Is India still a developing country? 2014). Such discrepancy prevents firm conclusions regarding the issue and makes this topic arguable.

Of course, the improvements planned by the government require a lot of time for implementation, but the ambiguousness of the current situation in India makes many people question its status. On the one hand, they think that continuous development will not come to an end soon. Moreover, it just starts working. On the other hand, they underline India’s achievements and plans for future changes. Thus, we can say that India has some drawbacks that are to be improved, but it is working hard on its way to development. It is not going to stop before reaching this goal because the greatest problems such as imparity among the population and corruption, etc. are taken into consideration and solving.

Failures of the Project

There are several reasons to question the claim that India is developing. Jayati Ghosh, professor of economics at Jawaharlal Nehru University, New Delhi, says that the process of development in India has just started, and it will not be completed soon.

The first objection to India’s development is the fact that it is a poor country. Jayati Ghosh, claims that it faces “widespread hunger and very poor nutrition indicators” (Is India still a developing country? 2014, para. 7). He points out that many people lack basic needs. They do not have decent places to live. Many do not have electricity and other conveniences.

The second reason is that due to the problems with employment, the project of development does not meet the expectations and entails a range of other failures. When people are talking about development, they often relate it to the creation of new jobs, which is more likely to improve the income and population of the country. However, things differ in India. Agriculture laborers occupy almost 60% of the workers from rural areas, and more than half of them are self-employed. Thus, it is not surprising that they are poor and have poor living conditions (Shankar, Gaiha & Jha 2011).

The third reason is the poor state of health. Raka Choudhury underlines that because of the rise of urbanization, “134,000 people died in traffic crashes in 2010…; as many as four times this number were injured” (Is India still a developing country? 2014, para. 4). These people need sufficient care, but only a few of them actually gain it. Moreover, India “accounts for about 60 percent of the world population without toilets, with human excrement that goes into a field polluting groundwater, crops and waterways” (Khuroo & Khuroo 2015, p. 44). Such pollution causes severe diseases and even leads to death.

Thus, the development in India can hardly be observed due to the numerous drawbacks.

Enhancing Conditions

Even though many people believe that the development project maintained by India does not meet the expectations, the situation is not so bad. According to the Citi Investment Research and Analysis, India is likely to become the “third-largest economy” till 2020 (Elliott 2009). The structure of economic growth alters to meet the needs of a current situation. Due to it, people also gain the opportunity to get better educated and trained. The anti-inflationary policy was adopted to cope with the issue. The country is said to invest a huge amount of money in its infrastructure and to benefit by dint of international trade.

Familiar ideas also have the Asian Development Bank. It is believed that India’s growth rate will soon exceed China’s. The Chief Economist claims that “the government’s pro-investment attitude, improvements in the fiscal and current account deficits, and some forward movement on resolving structural bottlenecks have helped improve the business climate and make India attractive again to both domestic and foreign investors” (Shankar 2015). The gross domestic product is thought to increase by more than 8%, which will surely benefit the country. Of course, the government should not be satisfied with what has already been achieved. Urbanization is to move forward for the industries to gain profit for India.

During the last several years, new roads and highways were made. Needless to say that they show the progress the country is managing. The roads do not just improve the visual state. Their primary goal is to reduce the number of accidents. As the country is developing, the infrastructure also alters. Many people become occupied in business, and they need to work more and to conduct numerous actions every day. To do everything in time, they move faster than usual, which increases the pressure of traffic. Kamal Nath, the Road Transport and Highways Minister, outlined “a 12,500-mile (20,000 km) highway-construction program that will require India to build 121/2 miles (20 km) of new roads a day — and that is only a part of a gobsmacking infrastructure program that will include more power generation, more air- and seaports, more irrigation projects” (Elliot 2009). He also pointed out that there will be a great improvement in health and education throughout the whole country. Moreover, the government is interested in enhancing living standards for poor people. It is considered that positive changes of this kind were lastly seen in China, and now India is following its steps.

Thus, the issues that are still familiar to the population of India will be solved soon. The government is determined to achieve the mentioned goals and has already planned the activities.

Rapid Development

The fact that the severe drawbacks accounted by India are not solving and reject the process of development can be refuted.

The country is said to be poor, but it faces economic growth. The image of India has greatly improved from the perspective of global marketing. Today it gains a lot of investments from abroad. It is also reducing corruption within the country. People who hid their income abroad illegally are going to face the punishment according to the law. New businesses are encouraged and supplied with the loans by Mudra Bank (India on the fast track of development 2015). The problems with undernutrition are going to be solved with the help of farmers. They will be provided with the needed power by dint of the new program (India on the fast track of development 2015). Thus, the farmers will be able to supply the population with food. Of course, the government is not able to cope with rains and hailstorms, but it is ready to support them and assist.

The fact that India has problems with employment is also doubtful. With the help of the loans provided by Mudra Bank, new companies will create more vacancies and supply the citizens with official job positions and regular income. A number of programs aimed at the creation of jobs for youth are managed, for example, Make in India and Skill India (India on the fast track of development 2015). The National Rural Employment Guarantee Scheme is undertaken to enhance “the livelihood security of people in rural areas by guaranteeing hundred days of wage employment in a financial year to a rural household whose adult members volunteer to do unskilled manual work, at the minimum wage, on-demand, within 15 days of asking for employment” (Shankar, Gaiha & Jha 2011, p. 70).

Heals issues faced by the population of India also are dealt with. The Prime Minister states that soon “every family should have 24-hour electricity, clean drinking water, toilets, roads, and internet connectivity so that the quality of life improves in villages” (India on the fast track of development 2015, para. 6). Hygienic conditions will also be enhanced. Clean India and Namami Gange program targets the creation of toilets and keeping the rivers clean. Such programs will not only enhance the living conditions by reducing the number of incidents but also reduce pollution. Thus, they will cause the improvement of health conditions.

Conclusion

Taking everything mentioned into consideration, it can be concluded that the development in India is not yet coming to an end, but lots have already been done. By dint of economic growth, the country is able to afford business encouragement. Thus, new working places occur, and more individuals gain official jobs, which affects their income in a positive way. They can have better education and healthcare. Sanitation issues are being solved, as they often cause serious health problems. The government targets making the country not only clean but also save, so the road infrastructure is being improved. India gains investments that assist it in becoming better and improving the conditions for the general public. India is likely to improve its condition greatly by 2020, and soon it will become a developed country.

Reference List

Elliott, M. 2009, ‘The India model’, Time International, vol. 174, no. 20, pp. 64-70.

India on fast track of development 2015. Web.

2014. Web.

Khuroo, M. & Khuroo, M. 2015, ‘Sanitation and sewage disposal in India’, JK- Practitioner, vol. 20, no. 1-2, pp. 43-46.

Shankar, B. 2015, . Web.

Shankar, S., Gaiha, R. & Jha, K. 2011, ‘Information, access and targeting: the national rural employment guarantee scheme in India’, Oxford Development Studies, vol. 39, no. 1, pp. 69-95.

Sociology of Mexico as a Developing Country

Introduction

Mexico is a Spanish Speaking Federal Republic in North America. It borders the Pacific Ocean on the west and south, on the north is the United States; on the east, it borders the Gulf of Mexico. Belize, Guatemala, and the Caribbean Sea borders Mexico on the Southeast. There are thirty one (31) federal districts and states in Mexico. It is the 14th largest country in the world with a population of 110 million people. The annual population growth is decreasing at a drastic rate, currently standing at 0.85%. Life expectancy is estimated at 75%., the mortality rate stand at 4.5% per 1000 people. Mexico City is the capital city of Mexico. The gross National product (GNP) stands at 760 billion dollars with an annual average growth of 5.8%.

Economic Developments: Dependency Theory

Dependency theory is the notion that, there are wealthy nations or states and marginalized under developed states. Resources are moved from the poor, under developed nation, to wealthy developed nations to sustain the wealth states economic growth and maintain the wealth. A vicious circle develops making it hard for the underdeveloped country to be independent economically, leaving these countries with no choice but to allow foreign corporations to set up base in their cities. Jobs are created in the city but the average wages is very poor, with the product through the local labor siphoned off to the developed countries.

This leads to exploitation as the foreign corporations make huge profits at the expense of poor countries. According to the dependency theory, the development of the global north is directly proportional to the underdevelopment of Global South. Handelman, Howard (2006)

Just like other Latin American economies, economic development of Mexico has shown full relevancy of the dependency theory, focusing mainly on export of raw materials. The United States and European Nations and at the same time depending on these countries for capitals and consumer goods.

Attempt by some Mexico past leaders like Cárdenas, to create new directions in economic development didn’t yield much as there were no heavy industries in Mexico that could compete against the United States and Britain. Mexico remained dependent on these countries. The Mexican’s elite who controlled most of the countries export were actively involved in perpetuating Mexico dependency. This class originated from a dependent economy and as such they pursued their agenda by advocating for policies geared toward dependency from developed countries.

Another factor that made Mexico to be economically dependent was its geographical Location. Mexico is characterized with mountains, forest and deserts leaving only twelve percent of total land arable, besides there are no major rivers in Mexico. These factors inhibit transportation, making it very difficult for Mexico to develop and expand its economy.

However much Mexico wants to be industrialized and be self reliant, its economy will have to remain dependent on other countries like Unites state. Departure from this dependency will most likely cause Economic collapse as Mexico root are deeply planted in these countries economically.

Religion and politics

Roman Catholic is the most predominant religion in Mexico, though evangelical churches are expanding their membership at a dramatic rate. The Roman Catholic played a major role in the history of Mexico right from 1519 when the Spanish landed in Mexico in the company of Roman Catholic clergies. All territories were conquered by in the name of the crown and church. The Roman Catholic has since those days continued to play a big role in Mexico issues.

The state and the church in Mexico have since independence had bruised relationship as the government engaged in concerted effort to limit church’s influence on people, as the Roman Catholic owned and controlled most hospitals, schools, charitable organizations and owned huge tracts of lands.

Various legislations have been put forward by the Mexican government since 1840 to limit the power of church. Education system was secularized, payment of tithe was declared none civil obligation. By 1915, most of the institution had undergone secular reforms; the 1917 new constitution had 5 articles that directly affected the church and religion. One article forbade churches from involvement in primary and secondary education.

Another article gave the state full ownership of the church buildings while yet another mandated all religious activities and ceremonies to take place within the church compound only. The harshest article was what was known as article 130 which stated that the Roman Catholic Church lacked legal status. Religious marriages were declared illegal and the state legislature had the mandate to control the number of church and clergy to be put up within their state. The church ministers were banned from criticizing the law of the Mexico either in public or private and had no right whatsoever to associate for political purposes.

A bloody religious war took place from 1926 to 1929 in Mexico, as people rebelled against government control of Churches. As a result, many churches were ordered to close. The priests were required to marry for them to officiate mass. The administration of Manuel Avila Camacho in 1940 ended the state church conflict. A consensus was agreed and the government was able to tactfully enforce the constitutional articles and limit the church activities hence removing the competition from the church. The church was left to continue with rebuilding ecclesiastical structure.

Early 1980s, the Roman Catholic was up in arm again, this time challenging the constitution’s anticlerical requirements. The church demanded to be granted rights to active participation in National issues. The church spoke out on issues relating to bad governance like corruption. The Mexican bishop under the banner of Global Pastoral Plan was instrumental in pushing for critical government assessment. According to the Roman Catholic Church, democracy in Mexico only existed in theory. The ruling party, Institutional Revolution Party (PRI) had power monopoly, leading to frustration and apathy.

Judicial corruption was rampant and the public was under political control. The bishops assumed important roles in denouncing electoral malpractice, fraud within the states, and human rights violations. The church has continued to put emphasizes that its involvement in political activities does not equate with church participation in parties’ activities.

By 1991, the church had managed to convince the government to remove constitutional restrictions imposed on the Roman Catholic, leaving the church to operate independently without state control.

Democracy and dictatorship

The Mexican constitution grant for a federal republic with power separation to independent arms of government i.e. Executive, judicial and legislative. The executive is the most dominant with a powerful president who disseminates and executes the law. The certain executive decree gives power to the president to legislate in financial and economic fields. Presidential elections are held every six years and a president can hold office for a maximum of one term. The constitution does not have any provision for a vice president. The opposition parties have made substantial gains since 1989 with several electoral reforms implemented.

The Mexican Congress is made up of the chambers of deputies and the senate. Senators are elected for one term of six-year, while the deputies serve for 3 years. There are 128 senators and 500 deputies, with 300 directly elected and 200 nominated proportionally to help small parties have access to the chamber.

There is two major division of the Judiciary; there are federal Courts and state courts. Major felonies and civil cases are handled by the Federal courts. The rest of the cases are handled by respective states courts. The president appoints the Supreme Court justices with the approval of the senate.

The July 2000 elections ended the Institutional Revolutionary Party (PRI) 71 years hold on the presidency. In what was widely considered the fairest and freest election, Vicente Fox Quesada on National Action Party (PAN), was elected the president beginning his term on 1st December 2000 and completing it on 1st December 2006. He is credited for strengthening the political system of Mexico and ending one-party rule. Under his leadership, the executive became more transparent, accountable, and citizen friendly.

The 2006 election was a tight race between the leading two presidential candidates, Andres Manuel Lopez of democratic revolution Party (PRD) and Felipe Caldero of the National Action Party (PAN).Felipe Caldero won with less the 1% margin. Roberto Madrazo of PRI finished third. Caldero legitimacy as president was challenged by the PRD candidate leading to protest, as PRD convection declared that their candidate was the legitimate candidate. Federal Electoral Tribunal has since upheld the victory of Calderon.

The PAN has the largest number in the senate and the deputies’ chamber, taking 40% of seat in house pf congress. The rest of the seats are shared between PRI and PRD. The fact that PAN does not enjoy a legislative majority, make it hard for them to breach the constitution and rule of law, sending strong signals the Mexico democracy is on the right path.

Ethnic-Cultural Divisions

Mexican has developed a National Identity through a unique positioning in the global arena and also through internal efforts toward homogeneity and unity. The complicated history of Mexico and relationship with imperialist explain the ongoing effort to achieve a conscious self identity.

Emphasis to bridge the cultural differences started after revolution back in 1920.The Columbian-India Culture was integrated in to National Imagery. Ideas that promoted homogeneity and unity were advocated. The opposition between Indians and Europeans gave rise to a fusion known as Mestizo, considered as real Mexican.

Despite the positive efforts to unite European and Indian culture to create National Identity, there is continued prejudice toward people of Indian origin. There is open racism in some provincial town where the indigenous people are most dominant. This has brought ethic tension which at time lead to armed rebellion in states like Chiapas.

Women and development

Mexican women have played an important role in Mexico economy since 1970s, making up to 35% percent of active populations involved in economic development. The 1980 economic crisis created a window for women to participate actively in economic development to supplement men effort. Educated Mexican women have since pursued career in all sectors of Mexico economy. Over 60% of women worker today are employed in tertiary economic sector, where wages are far much below than those of their male counter parts.

Mexican women have for long taken back seats in politics, but in the recent months, women especially wives of politicians at state and local ranks have broken rank with the deeply entrenched traditions and have started to follow their husband steps, campaigning to get into political office. One notable woman is the wife of Vicente Fox, former president, Marta Sagun. She had publicly declared her interest to run for higher office shortly. Another notable figure is Maria Del Carmen, wife of the governor of Tlaxcala State. The recent past has seen her battle for the presidential candidature of Democratic Revolution ally Party, a battle which she won in court.

In the state of Quintana Roo, the wife of the governor has once run for the mayoral seat for Cancun city. Marta Elena Garcia, a woman from the state of Nayarit, was firmly in the race for the 2006 presidential election with full support of the southerners who are mainly poor tobacco farmers.

The Mexican society has not fully appreciated the role of women in development and politics. The few women who are rising to play a bigger role in politics are met with stiff opposition from the male dominated society.

Globalization

Mexico started embracing Globalization back in 1985 when the government started cutting trade tariffs and eliminating trade restrictions. Four years later in 1989, many foreign investment restrictions were removed and to cap it all, Mexico signed the North American Trade Agreement (NAFTA) in 1994, thereby liberalizing the market.

Globalization in Mexico produced two results; The North was more exposed to the Global market than the south. In the north, the share of global trade tripled from 11 percent to 32 %, those Born in the Northern States did very well in term labor income. The southern Region had few industries and the region was not attracting foreign investment, income levels stagnated and in many cases it went down,labor earning also went down.

Some of the negative effects of globalization especially to the south were;

  • Economic growth is at 1% only in the south. This is lower than what was attained in 1993 before the signing of the NAFTA.
  • Salaries and Employment have gone down and to make matter worse for the common man, subsidies on basic commodities like bread and milk have been withdrawn
  • Poverty level has increased as most of the wealth has been concentrated to few Mexicans.
  • People are migrating at an alarming rate as they loose faith with their country. There is no future and most people feel their dream will come true only when they cross the border to United States. Money sent from United States by migrant account for over 10 billion dollars annually, making it the second highest source of foreign income.
  • With Globalization, the government has no control over prices for most good. Cheaper imports are hurting the economy especially in Agriculture due to unfair competition.
  • Foreign debts has increased to an all time high of 250 billion dollars, these figure continue to increase each year due to continued default on interest and loan payment by the federal government.

Revolutionary changes in Mexico

Mexican revolution was the most defining experience in Mexican history. It was a major arm struggle started by Francisco Madero uprising against Dictator Porfirio Diaz. Several movements took part in the revolution that culminated in the 1917 Mexican constitution. A large number of people were involved in the revolution and the political impacts were huge.

Diaz Era as the President of Mexico from1876 to 1911 was characterized by massive corruption. He changed the policy barring out going president from seeking re-election, standing for re-election in every election. Threat was the rule of the day and the army was used to a tool to bully citizen to vote for Diaz. He would rig himself to the presidency, detaining his political opponents. This use of force to stay in office saw him loose his popularity. Besides, he came with land reform which saw the exploitation of peasant farmer and land ownership was taken away from them. This necessitated power change, a rebellion was launched by leaders like Pancho Villa, Francisco Madero and Emiliano Zapata.

With full support of farmers and Indians, Madero led his army against Diaz government defeating the federal army, this culminated to the 1911 treaty of Ciudad Juarez, which required Diaz to hand over leadership to Madero.

Another uprising will follow later, this time pitting Zapata and Orozco, against Madero due to Madero failure to enact land reforms and his perceived weakness in leadership.Victoriano Huerta, commander in chief in Madero government took advantage of the situation to stage a coup, which eventually led to the resignation and execution of Madero and his vice president.

Huerta presidency was not recognized by many people, soon an uprising, pitting Huerta on one side and leaders such as Zapata, Caranza and Villa with the full backing of United States which had also refused to acknowledge Huerta as the president, on the other side. Huerta was forced to flee. Soon Venustiano Carranza was elected president of Mexico.

Different ideology between Villa and Caranza would soon lead to Villa breaking Rank with Caranza. Villa lead his army against Caranza by occupying Mexico City. Villa was very unpopular with the moderate generation hence he had no support of most Mexicans, he insisted on staging a battle against Caranza. On April 1915, one of the bloodiest battles in the history of Mexico revolution took place; it was called the Battle of Celaya. Carazza emerged the winner. He was recognized as the president of Mexico, with the full support of United States. He later formed what was known as Constitutional army, aimed at bringing all rebels together and to adopt their demands into the 1917 Mexico New Constitution. Some of the issues addressed by the 1917 constitution were; Ownership of resources, labor code, and the church role in land reforms and Education.

Social Ills, Social Problems and Health Issues

Drug trafficking in Mexico is a highly profitable illegal activity, which gives law enforcement agencies an intimidating challenges to protect the countries and the neighboring countries. Mexico is the largest drug supplier to the United States accounting for over 90% of cocaine trafficked to United States. Other countries use Mexico as conduit point for shipment of drugs like marijuana.

Drug trafficking is controlled by organized cartel operating from the border town. These cartels are a threat to the war against drug trafficking and most in cases wage violent wars against anyone trying to expose them. Mexico government spend a lot of money in the war against drugs, deploying over thirty thousand military troops to work with federal police in states like Guerrero, Michoacan, Chihuahua etc,where drug trafficking is most prevalent. Some powerful politicians and senior police officers are closely linked with drug trafficking, making Mexico war against drugs a tough battle.

In the recent past, Mexico has experience high crime rates. Polarization in economic is stimulating criminal activities in the in the middle and lower class. Most affected cities are Mexico City, Nuevo Laredo and Tijuana. The high crime rate is pouring into the United States.

Cases of children and women abuse are very rampant in. Poverty is the main contributor of children and women abuse, as they become an easier target by those undergoing economical frustration especially in the lower class. According to Child protection department, reported cases of child abuse are increasing at a record high of 30% annually. Cases of sexual abuse are very common in major towns where crime rates are high. The population of street family if growing at an alarming rate.

Conclusion

Mexico as a Nation has a long way to go if it is to be self reliant and uplift the life of its people, majority of whom are the Indigenous southerner. The continued dependency on United States and other European Nations only help in stabilizing Mexico economy. Mexico economy will mostly likely collapse if its trade partner, the United States and Europe were to cut economic ties, hence the need for establishment of policies aimed at creating a Home-Based Economy. This way, Mexico will offer the much needed employment to its people, reducing poverty, migration and all issues related to poverty.

Reference

Arellano Felix, drug trafficking in Mexico. Web.

Griffiths, R. J. (2008) The Developing World, United States, Pearson publishers.

Handelman, Howard (2006) Sociology of Developing Countries, United States, Pearson publishers.

Joel Solomon (1999) Human rights and Economic Development in Mexico. Web.

Luis Pazos, the People and History of Mexico. Web.

Matthew Davis, Globalization and poverty in Mexico. Web.

Small & Medium Enterprises in Developing Countries

Introduction

Small and Medium Scale Enterprises abbreviated as SME’s face a vast number of problems in all the aspects of the economy such as social, technological, legal, political, environmental, and ethical aspects. In a growing economy, this sub-sector contributes a lot to the Gross Domestic Product (GDP). This implies that sufficient solutions proposed raise the countries’ GDP. In all dimensions of development, the Small and Medium-Sized enterprises play a major role in economic development generally and in particular the industrial development in both developed and developing countries.

It falls under the private sector and research shows that it contributes to 90% of the enterprises in the world and creates 50-60% job opportunities (Hobohm, 2010). This paper covers a brief history, status, and the significance of SMEs in developing countries by citing examples from different countries. The first section provides a general overview of the problems facing the sector before giving details of the three main problems.

Small and Medium Scale Enterprises in Developing Countries

In almost all the developed and developing countries, Small and Medium-Sized Enterprises rely on local skills and technology and contribute to the establishment and maintenance of entrepreneurship. They also promote innovativeness, invention, and the growth and development of industrial linkages. They are relatively higher labor-intensive. The main economic importance of SMEs is the fact that they act as a source of new business innovation and creation and a platform for employment opportunities.

Small and medium scale enterprises fall into three main classifications based on their specific capabilities and success in solving the challenges they face. The first category is of the SMEs that have the ability to compete on the international front and can benefit from the regionalization. The second category is of the SMEs that are vulnerable to globalization. Such SMEs have lower chances of surviving through sufficient conformance to international standards, training, and employing the skilled personnel to compete internationally. The last category encompasses SMEs that are protected by the governmental policies and structures from the effects of globalization (Muhammad, 2010).

Despite the immense contribution of the Small and Medium-Scale Enterprises to the country’s economy, this sector faces many problems. In this paper, the writer assumes the problems facing Malaysian SMEs in the global business environment are also affecting all the other developing countries. The challenges commonly faced include lack of support from the state governments, global sourcing effects, effects of economic downturn, poor relationship between the Multi-National Corporations and the SMEs, unprotected intellectual property and bankruptcy, unsupportive legal frameworks and policies, poor decision-making processes, and the lack of branding of their products in the global market (Muhammad, 2010).

Problems in the Sector

This sector faces the challenge of the poor policies and frameworks that govern them. In most of the developing countries, established legal and regulatory framework and standards supporting SMEs do not exist. This leads to the poor leveled ground for the establishment and maintenance of SMEs. Government policies do not directly aim at SMEs. This puts them at a disadvantage because they cannot access the human, technical, and financial resources to support their establishment and productivity (Hobohm, 2010).

An example is the fiscal policies in developing countries that do not protect high-interest rates levied on the small upcoming entrepreneurs. Banks and money lending institutions need government control in relation to the rate of interest charged to the small traders. This problem is both economical and political. Other examples of the policies that can be formulated to support the SMEs in developing countries include the protection laws of the sector from the effects of globalization, policies governing the employees, policies governing the marketing of the products, policies governing the processes involved and the technological integration into those processes among other supportive policies.

The second problem facing SMEs in developing countries relates to the people involved. It falls under the category of social and environmental problems. Many SMEs in developing countries produce similar and complementary goods (Hobohm, 2010). Small entrepreneurs lock themselves in a narrow profit margin by operating in routine businesses copied from someone else. The players in the SME sector do not change their businesses. They do not adapt to technological innovations and inventions that can boost their products and processes to facilitate entry into the new markets. This problem relates to the environment through which an entrepreneur operates and the kind of businesspeople they interact with daily. This limits collective learning, innovation, and invention (Hobohm, 2010).

The problem of concentrating on one-business area arises from several factors. These factors include the high transaction costs needed to identify suitable network partners and establish mutual long-term business relationships with the external factors (Hobohm, 2010). Another factor is the lack of a supportive legal framework for the establishment of joint ventures and standards that supports innovation and invention in developing countries.

The third problem facing small and medium-sized enterprises in developing countries relates to technological transfer. There is a problem in planning and implementing the technological transfer due to the size. They lack the policy initiatives, schemes, and programs geared towards the adoption of the new technologies. Technological innovations are important in a growing economy to ensure technological competitiveness, product, and process improvement.

India for example faces the problems of globalization and ever-increasing international technological and economic competition. SMEs face the challenge of technology transfer to cope up with international competitiveness. In the last few decades, SMEs have been utilizing technology transfer as a way of strategizing to compete with global businesses. This is however constrained by their small size and the lack of skills to effectively plan for and implement these new technologies (Ramanathan, 2011).

This problem faces SMEs in developing countries because there are no adequate plans and strategies to improve the sector’s processes. In the event of an introduction of new technology, SMEs lack adequate expertise and funds to incorporate the technology into the existing system. This forces the potential customers of the SME products to seek other alternatives or complements within the market because the products do not meet the international current standards.

Conclusion

Small and Medium-Scale enterprises play a significant role in the economic development of developing countries. However, SMEs face a vast number of problems in its establishment and continuity. The problems range from the social, economic, technological, legal, environmental, ethical, and political aspects of nature. Being a private sector, SMEs experience negligence and sabotage from the state government and this is why all the problems revolve around the lack of adequate legal, regulatory frameworks, standards, and policies that are supportive of the sector. With the state government’s support, a number of the problems facing the sector get an automatic solution.

References

Hobohm, S. (2010). Small and medium-sized enterprises in economic development: the unido experience. Viena: The United Nations Industrial Development Organization.

Muhammad, M. (2010). Small and medium enterprises (smes) competing in the global business environment: A case of Malaysia. Labuan: Universiti Malaysia Sabah, Labuan International Campus.

Ramanathan, K. (2011). Technology transfer and small and medium enterprises in developing countries. New Delhi: NAM S&T Center Publishers.

Management Accounting and Control: Micro-Businesses Issues in Developing Countries

Introduction

In the article Management Accounting and Control (2009) by Satar, Epstein Yuthas, the authors address an existent problem of most micro-businesses in the developing countries of the world. With two-thirds of the world living on $2 a day and more than 500 million microenterprises, it can be stated that the problems of the lack of proper knowledge and skills in doing a business of such scale are of major importance. The authors record their experience in dealing with the most common areas of knowledge necessary for such businesses, the most common areas of failures, and the strategies implied by the owners for their business to survive. The article provides the results and the findings of a series of interviews with hundreds of microfinance clients (microentrepreneurs) and microfinance managers identifying the management accounting tools necessary for the business to sustain success.

Main body

The identified tools are cost management, throughput enhancement, budgeting, risk management, and identifying opportunities. The authors, being business educators themselves, finalized the article outlining the importance of providing education for microbusiness owners, a factor that can have a decisive impact on the success of the businesses. The numbers of microbusinesses in the world point out the demand for the expertise and knowledge to be provided for those micro enterprises, which “play a huge role in the global economy” (Satar, Epstein, & Yuthas, 2009, p. 29).

The importance of the notions provided in the article can be linked to the program by showing the importance of areas of knowledge on the individual scales. Given the examples of microbusinesses as options out of necessity, it can be stated that the current economic situation in the world enforces obtaining such kind of knowledge. In that regard, it can be stated that the notions of finances, administration, and management are becoming a part of most institutions in society, whether profit or not. In that regard, it can be stated that the topics discussed in the article, either outlining the necessity for knowledge, providing the overview of the usage of this type of knowledge on the individual and the business level, and the way a gap in such knowledge can be filled.

Accordingly, acknowledging the importance of such knowledge in retrospect, I can state that I have obtained the majority of the skills outlined by the authors. With the different levels of proficiency in the skills obtained, I can state that further development and/or obtaining the missing one can be achieved through self-learning. In that regard, the differences in the skills obtained and their proficiency can be attributed to the lack of practice, an aspect that can be compensated through self-learning. The extensive availability of access to free information on the internet can be useful for polishing the skills that I already have, or obtaining new ones. Nevertheless, I do believe that practice is the best method of integrating the acquired theoretical material into real life.

Conclusion

It can be concluded that the article provided a necessary insight that defines the necessity of knowledge in a practical context. Many of the aspects taught in schools do not have a practical implementation in real life, while the author outlined several areas of knowledge that are not only necessary for microbusinesses and micro enterprises, but also for people on the individual level. In that regard, I believe that I have the knowledge for both cases.

References

Satar, S. M., Epstein, M. J., & Yuthas, K. (2009). Management Accounting and Control: Lessons for and from the World’s Tiniest Businesses. Strategic Finance.

Entrepreneurial Activities in a Developing Country

Addressed Gaps in the Literature

The article by Eijdenberg et al. (2019) aims to fill the gap in the literature concerned with entrepreneurs’ individual experiences and responses to institutional constraints to entrepreneurship. According to Eijdenberg et al. (2019), the existing literature on institutional constraints to entrepreneurship focuses on macro- and meso-levels, i.e., it analyzes the constraints at social and sector or community levels. The micro-level, i.e., individual behaviors and experiences, is not covered in the literature. Therefore, the authors addressed this gap to find out entrepreneurs’ day-to-day experiences regarding barriers and facilitators of entrepreneurship in a developing country.

Ideas and Arguments Found Stimulating

One stimulating idea is that the most frequent political constraint to entrepreneurship in a developing country is complicated bureaucracy, which includes bribery, licenses, and paying taxes. Eijdenberg et al. (2019) found that, in Tanzania, many documents and licenses should be obtained to register a business, and this process often involved giving bribes. It implies that the government’s inability to facilitate the procedure of starting a business and cope with bribery hinders its economic development. Another stimulating argument is that joining associations helps entrepreneurs cope with institutional constraints. When entrepreneurs cannot handle business issues themselves, they turn to informal networks to decide on a new location or discuss marketing efforts.

Questions and Concerns with the Main Claims

The main claim is that studying entrepreneurs’ personal stories is as important as exploring entrepreneurship at society and community levels. The authors’ questions are concerned with entrepreneurs’ experiences regarding institutional environments, the effect of various institutions on entrepreneurs, and entrepreneurs’ responses to institutional constraints in developing countries. Since the authors emphasize the importance of studying entrepreneurs’ individual experiences and responses, it may raise a question of how entrepreneurs’ responses contribute to change in the institutional environment. Research into this question would prove the importance of the topic and inform policymakers’ decisions.

Similarities or Disagreements Reported in The Literature

In this article, the authors contrast their research with the existing literature on the topic. The existing studies on the effects of institutional environments on entrepreneurship have similar features: they analyze institutional environments on macro- and meso-levels and are mostly focused on developed countries (Eijdenberg et al., 2019). Eijdenberg et al. (2019), on the contrary, focus on the micro-level and investigates institutional constraints in a developing country. The authors also note that, although most research recognizes economic, political, and cultural factors affecting entrepreneurial activity, it does not provide details related to local contexts or specific situations. In contrast, Eijdenberg et al. (2019) thoroughly analyze these factors in the context of a challenging institutional environment in Tanzania. Yet, the findings of the study by Eijdenberg et al. (2019) appear to be consistent with the results of the literature review. For example, common findings are that informal associations and relationships with key government officials help entrepreneurs cope with institutional constraints.

Future Research Directions

The article provides several directions for future research on the topic. Firstly, the authors suggest that future studies may focus on exploring entrepreneurial activity in difficult institutional environments, e.g., transition economies or newly-emerged countries. Secondly, scholars may conduct similar studies in Tanzania and neighboring countries using different research methods to deepen the understanding of the topic. Thirdly, Eijdenberg et al. (2019) argue that it would be reasonable to explore the extent to which language barriers and festivals affect entrepreneurship activity. Research in these directions would provide a more detailed overview of the effects of institutional environments on entrepreneurship.

A Recent Work Missing

In their study, Eijdenberg et al. (2019) discovered entrepreneurs’ responses to institutional constraints in Tanzania. There is another recent study focused on entrepreneurs’ responses in developing countries. Elert and Henrekson (2020) reviewed the literature on the topic of entrepreneurial responses and classified these responses into three categories: institution-abiding, institution-altering, and institution-evading. Responses in all three categories may be either productive, leading to positive changes in the institutional environment, or unproductive (Elert & Henrekson, 2020). For example, among entrepreneurs’ responses found by Eijdenberg et al. (2019), providing the market with high-quality and unique goods may be regarded as a productive response, while paying bribes is unproductive.

References

Eijdenberg, E. L., Thompson, N. A., Verduijn, K., & Essers, C. (2019).International Journal of Entrepreneurial Behavior & Research, 25(3), 414-432. Web.

Elert, N., & Henrekson, M. (2020). The Review of Austrian Economics, 1-21. Web.

Internationalization Process of Firms From Developing Country

Qatar, being a favorable region for the development of small and medium-sized businesses, provides local SMEs with sufficient conditions to advance domestically and internationally. One of such businesses that have gained popularity and developed into an international program is IAID, an institute that promotes creative training services for children and adolescents in music, dance, and arts. According to the official statistics, today, IAID provides training to over 1,200 students and reaches over 80 nationalities (“We are globally recognized,” 2021). Despite the fact that IAID is a Qatari company, it is actively promoted in the international market and seeks to expand its range of influence by involving different countries in its network.

To date, IAID has not changed its SME status, but the organization is doing its best to internationalize its work. In particular, IAID is expanding its activities to Asian countries and engaging target audiences from the UAE, the Philippines, Oman, India, Kuwait, Singapore, and other states (“IAID appointed as an exclusive regional representative,” 2021). The systematization of the approach to the provision of related services is one of the successful strategies of IAID. The business combines a number of creative directions within one platform and builds a productive environment for the development of children’s and adolescents’ creative potential. One of the recent achievements is the creation of a productive partnership with the Asia Pacific Dance Association, a large internationally recognized organization (“IAID partners with Asia Pacific Dance Association,” 2021). These results of active market work prove IAID’s interest in an internationalization strategy and its strong prospects for working in the global market.

The activities of the business in question can be considered not only from the perspective of its internationalization strategy but also from the standpoint of effective asset management work. According to Alyafei (2021), the success of many Qatari SMEs is attributed to the efficient allocation of the resource base through adaptation to specific market conditions and sustainable orientation. The art sector is not easy to capitalize on due to its creative focus and insufficient investment potential. In other words, attracting sponsors and ensuring sustainable development is complicated by the fact that there are no guarantees of stable profits and sufficient customers. However, according to the official figures, in 2018, IAID took the 7th position in the list of the most successful Qatari SMEs, beating many businesses from the list of more than 800 companies (“IAID is ranked as the 7th top SME in Qatar,” 2021). Therefore, active work to promote the company at the international level has proven its effectiveness and gained recognition in the domestic market.

Given its current success, IAID has broad potential to expand its business opportunities and achieve better outcomes. The SME is increasing its spectrum of influence regularly and aims to create new conditions for promoting creativity among talented youth. These objectives are valued highly in an era of massive competition and aggressive markets, and the enterprise can enhance the reach of its business by following an effective expansion strategy.

The case of IAID, the well-known and successful Qatari SME involved in the creative education of talented youth, confirms that an effective internationalization strategy can gain recognition and expand its sphere of influence. However, at the moment, the business in question focuses on the Asian market while the western direction can also be covered. IAID has the potential to become a global organization with representation in many countries. Today, Qatar is a business-friendly region due to the demand for local services driven by technological advances and a strong financial base (Chabani, 2021). At the same time, the field of art is not the main area of ​​interest for investors, and building an effective business strategy for internationalization is an urgent task. Assessing the reasons for moving to the global market, barriers to internationalization, and specific steps to apply shape the main focus of this analysis.

Reasons for the Need to Enter the International Market

Developing a tailor-made internationalization strategy for IAID is an essential task in light of the specifics of its business. As Dominguez (2018) argues, most modern SMEs trying to enter new markets focus on the prospects for expanding exports and trade in new directions. Nonetheless, with regard to the IAID case, the specifics of its work do not correspond to traditional business practices involving tangible assets. In order for the SME to gain recognition globally, the enterprise should establish partnerships with different regions by opening new educational branches and performing its success to demonstrate the principles of work. Thus, IAID needs a personalized approach to internationalization due to the difference between its business and traditional entrepreneurial models promoted by global corporations.

Another reason to enter the international market and realize business opportunities productively is the enterprise’s ongoing interaction with numerous countries in the Asian region. Diop et al. (2017) analyze the Qatari market and note that the local culture of involving the population in non-profit projects is high due to the existing religious factors and the advanced level of social development provided by a sustainable economy. This means that, in addition to successful partnerships in the east, despite its possible distinctive cultural values, Qatar is a favorable country for business interactions with western states. Balawi (2021) argues that Qatar, along with several other countries in the Arab region, has an advanced entrepreneurial ecosystem with broad potential, including international perspectives. The researcher highlights the country’s high private equity, which allows local SMEs to count on free and active work in a dynamic and competitive market with the potential to enter the international arena (Balawi, 2021). Therefore, from an economic perspective, IAID should develop and promote an individual internationalization strategy because the current conditions favor it.

In the context of working in a specific sector, IAID should ensure that its influence is sustainably expanded by identifying the most promising directions. According to Elbanna et al. (2020), internationalization solutions are often limited by the lack of investment information, tight time frames, and some other factors. However, for the SME in question, these restraints are irrelevant. IAID carries out activities for creative education and the promotion of art among young people, which does not require utilizing innovative tools and emergency adaptation to specific market conditions. In addition, as Elbanna et al. (2020) remark, SMEs can face challenges if technological factors form the backbone of their businesses. Trends are constantly changing, and the challenge for small and medium-sized companies is to build sustainable decision-making frameworks to minimize risks and get the most out of the resources available. However, IAID does not work with digital or other assets, which allows it to promote a tailor-made internationalization strategy and use personally designed methods to engage target audiences. Therefore, in view of these advantages, the SME should enter the international market and use its current potential comprehensively to achieve lofty goals.

Barriers to Developing a Sustainable Internationalization Strategy

Although IAID has a tailor-made business niche and offers unique services to its target audience, developing an internationalization strategy can be challenging. When analyzing SMEs from a globalization perspective, Paul (2020) mentions the institutional, capability, and human resource barriers. For IAID, the first type of challenge is relevant because the SME has sufficient assets and human resources to operate sustainably. According to the author, the institutional theory involves comparing specific norms of the social structure with the characteristics of behavior within individual communities (Paul, 2020). This reasoning is objective in the context of the business in question. In their research, Rahman et al. (2020) argued that “the institutional framework of a country included different dimensions of natural environment such as regulatory dimensions (national government policies), cognitive dimension (shared social knowledge), and normative dimension (value system)” (p. 214). This means that individual cultural constraints can hinder the expansion of IAID’s business. In this regard, the assessment of the features of promotion to target regions is necessary. The analysis of the factors affecting business expansion needs to be carried out to ensure smooth internationalization and avoid failure due to institutional constraints.

Another barrier to take into account is the current economic indicators of the regions for expansion. Hawawini (2016) highlights that Qatar is a good investment destination, including in the education sector. Local organizations invite investors to locate their centers in the country, which is normal practice in a market economy. However, with regard to promoting Qatari SMEs, difficulties may arise with the willingness of individual countries to accept the IAID’s operating principles. For instance, Saleh et al. (2021) give the example of Vietnamese SMEs and note that local businesses often face export barriers due to the conventions of modern trade regulations and restrictions imposed on policymakers by the authorities. For Qatar, such restrictions are unacceptable since the state claims to be internationally recognized and seeks to attract as many investors as possible. Consequently, IAID may face not only cultural but also legislative challenges in developing an internationalization strategy, which, in turn, can impede business growth.

As a result, in order to overcome the aforementioned barriers successfully, IAID needs a sustained internationalization strategy that addresses potential challenges and constraints to avoid the risk of losses. According to Ali and Ahamat (2018), for many Qatari businesses, globalization provides more development opportunities than threats due to stable resource bases, a good reputation in the local and neighboring markets, and a wide range of partnerships. However, when taking into account the specifics of the SME under consideration, profit capitalization is not its key goal, and an individual development plan is necessary, which does not involve utilizing traditional methods of strengthening market positions. Such business concepts as strategic planning, return on investment, and some other conventional approaches can be ineffective in planning an expansion mode. Thus, while taking into account the specifics of the business in question, an individual program should be drawn up to ensure the effective internationalization of IAID’s business and help the SME overcome the complexities of interethnic work.

A Market Entry Strategy for IAID: Relevant Steps

Since, based on the above analysis, the Western market has been identified as a potential way to expand IAID’s business, appropriate steps should be taken to cover the conventions of entrepreneurial activities in countries of this direction. Within the framework of the considered conditions and the specifics of the SME’s work, individual principles should be followed. Thus, a market entry strategy for IAID may be based on the following stages:

  1. Building partnerships with foreign groups. Osmani et al. (2020) consider such a concept as collaborative innovation and note that the creation of international networks with the involvement of similar businesses is a potentially convenient practice for SMEs. Despite the fact that IAID’s business is largely built on a non-profit basis, providing a financial background for working in Western countries is imperative. Nakos et al. (2019) state that alliances are valuable “to form specific links with external partners” (p. 604). Therefore, collaborating with other businesses promoting creative youth education services can help grow IAID affiliates overseas.
  2. Another urgent step is to attract modern media resources as channels for the popularization of IAID’s services. According to the Oxford Business Group (2016), media platforms are the promising tools of the marketing industry since most developed countries use digital resources as the main instruments for analyzing the preferences of the target audience. The popularization of the activities of the business in question should take place in the context of creating a clear proposal among the target population. As the Oxford Business Group (2016) states, “SMEs are bedrock of any successful economy,” and this thesis should be taken into account (p. 86). The more productive the promotional activity will be, the greater is the likelihood of customer engagement, which not only strengthens IAID’s position in the Western market but also proves the effectiveness of marketing efforts in an international context.
  3. Adapting the business’s services to the current market preferences. While taking into account the aforementioned institutional barriers, the adaptation of services or changes in the current principles of interaction with youth can help the Qatari SME to conquer more of the Western market. Safari and Saleh (2020) note that, when expanding operations, this is crucial to anticipate success rates based on the end market but not current results. In other words, the specifics of a new business environment are more important than those promoted within the familiar market. Therefore, combining the principles of working with target audiences by following a cross-cultural context is a must for IAID, and Al-Ali Mubarak et al. (2020) confirm the value of this approach. Reaching the interests of the general public is the key to recognition in a new environment with its traditional principles, including cultural and behavioral patterns.

Conclusion and Summary Table

IAID is a Qatari SME providing creative education services to talented youth, and in the domestic market, the business has been successful. However, to expand its influence, an effective internationalization strategy needs to be developed with an emphasis on the western direction because today, the SME cooperates with many Asian countries. In Table 1, the main steps to apply are highlighted, as well as their potential outcomes. For IAID, relevant barriers are to be overcome to meet the interests of a new audience and gain recognition as a global market participant, which is in line with the goals of sustainable entrepreneurship.

Table 1. Summary Table.

Market Steps Outcomes
Building partnerships with foreign groups. Using the strategy of collaborative innovation to cover a new market segment.
Attracting modern media resources. Popularizing the services of the SME in a new market by utilizing the most effective marketing channels.
Adapting the business’s services to the current market preferences. Modifying some of the SME’s principles or educational methods to meet the interests interests of the western public from a cultural perspective.

References

Ali, M. S. S., & Ahamat, A. (2018). Internationalization process of firms from developing country: An empirical evidence of UAE family business firms. International E-Journal of Advances in Social Sciences, 4(10), 100-106. Web.

Al-Ali Mubarak, Y. M., Gorgenyi-Hegyes, E., & Fekete-Farkas, M. (2020). Perceived corporate sustainability practices and performance of small and medium enterprises (SMEs) in Qatar. Polish Journal of Management Studies, 22(1), 26-42. Web.

Alyafei, A. A. M. (2021). The impact of international entrepreneurial orientation on the performance of SMEs in Qatar: The mediating role of degree of internationalization. Turkish Journal of Computer and Mathematics Education (TURCOMAT), 12(3), 2939-2947. Web.

Balawi, A. (2021). International Entrepreneurship Review, 7(2), 55-66. Web.

Chabani, Z. (2021). The impact of entrepreneurial culture on economy competitiveness in the Arab region. Academy of Entrepreneurship Journal, 27(1), 1-13.

Diop, A., Johnston, T., Le, K. T., & Li, Y. (2017). Donating time or money? The effects of religiosity and social capital on civic engagement in Qatar. Social Indicators Research, 138(1), 297-315. Web.

Dominguez, N. (2018). Journal of International Entrepreneurship, 16(1), 58-81. Web.

Elbanna, S., Hsieh, L., & Child, J. (2020). Contextualizing internationalization decision‐making research in SMEs: Towards an integration of existing studies. European Management Review, 17(2), 573-591. Web.

Hawawini, G. (2016). The internationalization of higher education and business schools: A critical review. Springer.

IAID appointed as an exclusive regional representative of IPVAEB, Singapore. (2021). IAID. Web.

AID is ranked as the 7th top SME in Qatar. (2021). IAID. Web.

IAID partners with Asia Pacific Dance Association (APDA). (2021). IAID. Web.

Nakos, G., Dimitratos, P., & Elbanna, S. (2019). International Business Review, 28(3), 603-612. Web.

Osmani, M. W., El Haddadeh, R., Hindi, N., & Weerakkody, V. (2020). International Journal of E-Entrepreneurship and Innovation (IJEEI), 10(2), 62-75. Web.

Oxford Business Group. (2016). The report: Qatar 2016. Oxford Business Group.

Paul, J. (2020). . European Management Journal, 38(2), 219-230. Web.

Rahman, M., Akter, M., & Radicic, D. (2020). Business Strategy & Development, 3(2), 213-225. Web.

Safari, A., & Saleh, A. S. (2020). Journal of Business & Industrial Marketing, 35(4), 635-654. Web.

Saleh, A. S., Donovan, J., Le, V., & Safari, A. (2021). Breaking down the export barriers for small and medium-sized enterprises: Focus group study across Vietnam. Journal for Global Business Advancement, 14(2), 142-165. Web.

We are globally recognized. (2021). IAID. Web.

Entrepreneurial Intention in Developing Countries

Introduction

Many aspects of life are viewed and approached differently by people from developed and developing countries. The state’s economic prosperity affects not only its business opportunities but also the nation’s perception of making money and building a career. Therefore, research focused on developing countries is essential for understanding their operation outside of perspectives offered by developed nations. One of the major topics in business research is entrepreneurship – the creation of a business by one or a group of individuals [8]. This venture requires finances, resources, and, most importantly, motivation. Here, the idea of entrepreneurial intention has to be considered. According to Nieuwenhuizen and Swanepoel, entrepreneurial intention can be described as one’s conviction and desire to start a new business [24]. This term includes not just the thought about creating a company, but a certain level of commitment and an understanding of the principles of entrepreneurship.

This particular topic has to be discussed in the context of developing countries, in particular, because they present different opportunities to their residents in comparison to developed nations. Some of these states may not have government systems for the support of small businesses. Others may have cultural barriers to entrepreneurship rooted in the collectivist beliefs, cultural background, or general negative view of self-employment [9]. Thus, the factors affecting people’s entrepreneurial intention can also be unique to this group. This research is based on the literature review and analysis of studies looking at people’s entrepreneurial intention in various developing countries. It aims to answer such questions as to what perceptions and motivations people have, what challenges they encounter when creating a venture, and how these countries’ economies or sociocultural factors impact entrepreneurial intention.

Literature Review

The idea of entrepreneurial intention is highly investigated in the context of developing countries, but most studies use a limited sample and focus on one nation, which does not result in a broad view of the topic. However, it provides one with a solid foundation for a literature review. Table 1 describes the main information about each paper in alphabetical order – the country under investigation, the main topic, the factors that increase entrepreneurial intent as well as barriers to it, and the authors’ final thoughts. The central issue is listed to establish which question is the most interesting to the authors, thus showing the potential limitations of their conclusions. Notably, some studies do not talk about barriers and positive influences at the same time. From this table, one can see which of the concepts are found to be the most beneficial for the entrepreneurial intention in developing countries, and which barriers are the most detrimental.

Table 1. Summary of the research on entrepreneurial intention in developing countries.

Reference No. Source Author(s) Country Central Issue(s) Increasing Factors Barriers Conclusions
[1] Adekiya and Ibrahim Nigeria Culture and education Entrepreneurial training, information dissemination Specific training was found to increase entrepreneurial intention significantly
[2] Aleidi and Chandran Saudi Arabia Gender and institutional environment, IT Perceived opportunities, role models, entrepreneurial self-efficacy, computer skills, personal innovativeness Fear of failure, society’s culture In Saudi Arabia, women’s entrepreneurial intention in IT depends on sociocultural and technological factors
[3] Amanamah et al. Ghana Barriers for university students Less strict regulations, self-confidence Capital, political environments, resources, skills, corruption In a developing country, economic and legal factors are more influential than sociocultural ones
[4] Ambad and Damit Malaysia Undergraduate students’ intention Personal attitude, relational support, behavioral control Peer and family support, as well as a positive view of entrepreneurship and confidence, are the most valuable in driving intention, while education and government assistance are not as crucial
[5] Ayodele Nigeria Demographic, socioeconomic, and personal characteristics in adolescents Self-efficacy, status, locus of control Motivation programs and counseling should be introduced in schools to improve entrepreneurial intention
[6] Chandran and Aleidi Saudi Arabia Gender stereotypes and norms Entrepreneurial self-efficacy, view of entrepreneurship, social norms, experience Gender stereotyping Gender stereotyping plays a negative role in driving entrepreneurship
[7] Choo and Wong Singapore Triggers and barriers Intrinsic and extrinsic rewards, independence, and autonomy Lack of capital, skills, or confidence, costs, personal hardships Systemic barriers and personal fears act as barriers, while intrinsic motivation and risk-taking increase intention
[8] Fatoki South Africa Entrepreneurial intention in graduates Employment, creativity, autonomy, economic situation, and exiting capital Risk, skills, lack of capital, economy, crime Entrepreneurship education is suggested as a way to overcome low intention, developing creativity, self-efficacy, and risk-taking
[9] Fitzsimmons and Douglas India, China, Thailand, Australia Cross-cultural analysis of attitudes Supportive environment, risk tolerance, independence, Risk aversion, age, work attitudes Income, risk, independence, work effort, and ownership greatly affect people’s view of entrepreneurship – more risk-averse individuals do not have strong intentions for creating a business
[10] Gelard and Saleh Iran Contextual factors Education, institutional support Specific courses and an inspiring environment help students develop a positive view of entrepreneurship, but the government should help new business creators through policy and financial assistance
[11] Gurbuz and Aykol Turkey Determinants for young graduates Entrepreneurial parents, perceived behavioral control, supportive environment, training, gender (male) Country’s developing stage, social norms Previous experiences, self-confidence, and a supportive environment positively affect intent, but in developing countries, the risk of failure is a great barrier
[12] Hussain and Hashim Pakistan Gender in developing countries Attitude, behavior control, subjective norms – for men;
Attitude and behavior control – for women
Social norms are not as impactful on entrepreneurial intentions as predicted. Women should receive government support to increase perceived behavior control
[13[ Hussain and Norashidah Pakistan Entrepreneurial education Theoretical knowledge, social networking, attitude, behavioral control Specific entrepreneurship-related information, as well as personal behavior, positively impact intention
[14] Ibrahim and Lucky Nigerian students in Malaysia Environment, skills, and professional orientation Skills and entrepreneurial orientation The environment is not found to be as important as people’s personal view of entrepreneurship and acquired skills
[15] Ismail et al. Malaysia Big-Five personality and contextual factors Extraversion, close support, openness, entrepreneurship courses Personality and family support greatly affect one’s intentions – openness and curiosity are related to entrepreneurship
[16] Karimi et al., “The Impact of Entrepreneurship Education” Iran Entrepreneurship education Elective and compulsory training programs Both compulsory and elective courses in entrepreneurship have a positive impact on student’s intention, self-efficacy, and perceived behavioral control
[17] Karimi et al., “Understanding Role Models” Iran Gender and role models Male gender, positive role models, attitude Social pressures, local environment In Iran, the tumultuous economic situation lowers people’s intention regardless of gender, but men, having less societal pressures and more role models, are more inspired than women to become entrepreneurs
[18] Koe et al. Malaysia Millennial generation Knowledge, social networking, prior experiences While personality traits and self-efficacy have a positive effect on one’s intent, education and ties are the most valuable in driving motivation
[19] Koe Malaysia Individual
Entrepreneurial Orientation (IEO)
Proactiveness, innovativeness, positive attitude, education, Student’s individual qualities contribute to their intention, especially their desire to innovate and create a unique product or service, while risk-taking is not as important
[20] Malebana, “Entrepreneurial Intentions” South Africa Rural university students Attitude, behavior control, subjective norms In rural South Africa, the theory of planned behavior predicts students’ entrepreneurial intention
[21] Malebana, “The Effect of Knowledge” South Africa Knowledge of entrepreneurial support Government support, knowledge of support Lack of information Individuals’ awareness of government programs for entrepreneurs raises their intention
[22] Mehtap et al. Jordan Young women’ entrepreneurship Education system support Lack of concrete initiatives Women’s opportunities and a supportive academic environment reduce barriers to entrepreneurship, but their effect is limited
[23] Nasar et al. Pakistan and Vietnam Entrepreneurial intention in the short- and long-term Attitude, perceived behavior control, subjective norms, peer support, government assistance Lack of resources, risk Personal attitudes have an effect on short-term intention, while support positively impacts long-term intention
[24] Nieuwenhuizen and Swanepoel South Africa and Poland Master’s business students Behavioral control, positive attitude, family and peer support, networking, self-efficacy In developing countries, behavioral factors and support play a prominent role in entrepreneurial intention
[25] Pihie Malaysia Career choice and self-efficacy Positive aspiration, self-efficacy, particular teaching strategies, Lack of competencies Knowledge in business, marketing, and management, as well as one’s positive aspirations, increase entrepreneurial intention
[26] Pihie and Bagheri Malaysia Self-regulation Self-efficacy Self-efficacy is the main factor in increasing entrepreneurial intention, while self-regulation strengthens this link
[27] Saeed Pakistan Organizational and institutional factors Supportive government environment – regulations, policies, programs Lack of university support Policies benefiting entrepreneurs increase intention, while the lack of assistance from universities has a negative impact
[28] Saraf India Determinants Part-time work experience, social networking Gender is not a barrier In India, connections and personal experiences increase entrepreneurial intention in men and women
[29] Sesen Turkey Personality and environment Individual factors – self-efficacy, locus of control;
Environmental factors – social networking, capital
The combination of personal beliefs and systemic support positively affects intention
[30] Setti MENA countries Youth and gender, education, income, and occupation Higher education, unemployment, high household income, male gender Cultural restrictions The fear of unemployment and education play a significant role in inspiring young entrepreneurs, but women are less motivated due to societal constrains
[31] Siu and Lo China and Hong Kong Individualism-collectivism orientation Relationships, peer support, social norms, self-efficacy In China, the role of connectedness is essential – people refer to their relatives and loved ones when discussing their entrepreneurial intention
[32] Solesvik et al. Ukraine Culture and education Specific education, perceived feasibility, desirability Cultural barriers Entrepreneurship education contributes to intention but the lack of transferable skills and cultural view of entrepreneurship act as barriers
[33] Sondari Indonesia Entrepreneurship education and graduate unemployment Entrepreneurship courses, positive perception Negative view of entrepreneurship, lack of knowledge Special education that gives students and graduates information about entrepreneurship positively affects their chance of creating a business
[34] Tong et al. Malaysia University students Family business background, personal need for achievement, influence Desire for independence does not drive the intention, but one’s family background, ambitions, and education do
[35] Trivedi India, Singapore, Malaysia Post-graduate management students Positive attitude, behavioral control, academic support External environment Perceived behavioral control and a positive university environment impact one’s intentions, while external barriers lower self-confidence
[36] Tsai et al. Taiwan and China Opportunity, failure, and gender Perceived capability, opportunity Risk aversion, gender, age People (especially men) who positively view their capability and opportunity for business have higher entrepreneurial intent
[37] Turker and Selcuk Turkey Policy making for graduate entrepreneurship Supportive academic environment, structural support Education and government assistance are perceived as equally valuable for increasing entrepreneurial intention
[38] Uddin and Bose Bangladesh Business students Risk taking, education, environments, need for achievement A supportive environment and personal characteristics and beliefs form one’s entrepreneurial intention, while job security is not as influential
[39] Yıldırım et al. Turkey Discipline and gender’s impact on entrepreneurial intent Business education, formal sources, social support, need for achievement Gender (lack of empowerment for female students), negative self-perception Previous business education and need for personal achievement positively correlate with high entrepreneurial intent
[40] Zhang et al. China Entrepreneurship education Education, male gender, technological background Prior exposure Prior experience with entrepreneurship is found to negatively impact intention, while specialized courses lead to positive attitudes and motivation

Method

For this literature analysis, a search was conducted using several databases, including Google Scholar, Procedia, Sage, Scientific Electronic Library Online (SciELO), MDPI, and others. Such search phrases as “entrepreneurial intent, entrepreneurial intention, developing countries” were used to narrow the topic. Furthermore, articles that considered developed countries or used them for comparison were eliminated from the list. Aa a result, 40 studies (37 peer-reviewed journal articles and 3 conference proceedings papers) were chosen for further investigation. It should be noted that a variety of countries with developing economies is presented in the collected works, but most notable are Nigeria, Saudi Arabia, Malaysia, South Africa, India, China, Iran, Pakistan, and Turkey.

The majority of peer-reviewed studies were published in business journals, most of which are concerned with international business. For example, such journals as the International Entrepreneurship and Management Journal and the International Journal of Business and Management appear several times. Table 2 shows the distribution of the chosen articles according to their journal or conference proceedings publication. It should be pointed out that business journals are as frequent as educational ones, implying that the topic of entrepreneurial intention is closely related to that of training.

Table 2. The distribution of selected articles by publication.

Journal/Conference Title Frequency Percentage (%)
Procedia-Social and Behavioral Sciences 4 10
International Entrepreneurship and Management Journal 3 7.5
International Journal of Business and Management 3 7.5
Education+ Training 2 5
Journal of Small Business Management 2 5
Acta Commercii 1 2.5
African Journal of Business Management 1 2.5
Babson-Kauffman Entrepreneurial Research Conference 1 2.5
Entrepreneurship and Innovation Management Journal 1 2.5
Entrepreneurship Theory and Practice 1 2.5
European Journal of Business and Social Sciences 1 2.5
European Journal of Research and Reflection in Educational Sciences 1 2.5
European Journal of Social Sciences 1 2.5
International Journal of Entrepreneurial Behavior & Research 1 2.5
International Journal of Entrepreneurship and Small Business 1 2.5
International Journal of Social Sciences and Humanity Studies 1 2.5
Journal of Economics and Behavioral Studies 1 2.5
Journal of Entrepreneurship and Business Innovation 1 2.5
Journal of Entrepreneurship and Innovation in Emerging Economies 1 2.5
Journal of European Industrial Training 1 2.5
Journal of Global Entrepreneurship Research 1 2.5
Journal of Global Strategic Management 1 2.5
Mediterranean Journal of Social Sciences 1 2.5
PACIS 2017 Proceedings, Association for Information Systems 1 2.5
Paradigms 1 2.5
Procedia Economics and Finance 1 2.5
Proceedings of the 51st Hawaii International Conference on System Sciences 1 2.5
Singapore Management Review 1 2.5
Sustainability 1 2.5
The International Journal of Management Education 1 2.5
Vocations and Learning 1 2.5
Total 40 100

Results

Individual Characteristics

The summary of the studies shown in Table 1 creates several areas of research for this topic. First of all, the majority of the papers have a similar theoretical framework based on the theory of planned behavior (TPB). According to this ideology, a person’s behavioral intentions are linked directly to their actions, meaning that the examination of beliefs can help understand their actions and choices [25]. TPB is based on three major elements: subjective norms, attitude toward a particular behavior, and perceived behavioral control [25]. In the case of entrepreneurial intention, the first part described one’s attitude toward starting a venture. Subjective norms express one’s beliefs about important people in their life and their opinion on whether this person should become an entrepreneur. Finally, the foundational concept of this theory is perceived behavioral control that defines how one views their control over behaviors in a particular situation.

In the chosen studies, it is apparent that the TPB is essential to examining entrepreneurial intention. The majority of articles find this framework to be perfect for describing people’s motivations to start a business. As Pihie and Bagheri note, for example, self-efficacy (one’s perception of their ability to complete a task) is the most important factor in determining their intention [26]. Other researchers agree, listing both behavioral control and self-efficacy as the basis of people’s beliefs. This theory may be vital due to its attention to people’s inherent motivations. Entrepreneurship requires a high level of commitment and significant time, which makes the tasks related to such businesses difficult and demanding. High perceived behavior control and self-efficacy challenge this notion and help people to view the field of entrepreneurship as desirable. As a result, they also consider this business opportunity as positive, further affecting their intention.

However, personal characteristics are not limited to self-efficacy in the chosen studies. Another theory that is used in one research is the Big-Five framework that views all subjects through the lens of five major personality traits: “extraversion, conscientiousness, agreeableness, openness, neuroticism” [15]. The authors determine that only two of these elements are important in entrepreneurial intention – extraversion and openness. It is possible to connect the second trait with the principles of the TPB, as openness is often linked to innovativeness, exploration, and curiosity that may help in forming a positive attitude toward behavior. Extraversion is a description that can be reviewed in another context, social networking, which is considered below.

Gender and Culture

Apart from the inherent characteristics of one’s character, many studies are concerned with the effect of culture, gender, and age of individuals on their entrepreneurial intention. In this case, one can distinguish conversations about women’s access to entrepreneurship, the impact of collectivism and individualism on business, and the perception of risk in relation to age. The first discussion does not produce homogenous results, and different studies do not unanimously agree on women’s place in contemporary entrepreneurship. For example, Saraf finds that factors for entrepreneurial intention are the same for female and male participants [28]. Thus, gender does not affect their opportunities in a significant way.

In contrast, several articles come to the conclusion that women’s intentions are different, not due to their personal characteristics, but the opportunities given to them. Some scholars reveal a significant divide between genders, stating that men are much more interested in entrepreneurship than women [30, 36]. The authors link this difference in motivations to cultural constraints that are present in many cultures. Women do not hold positions of power or are still expected to focus on their role in the family. Yıldırım et al. confirm these ideas, finding that cultural norms often provide men with systemic support for developing confidence and acquiring relevant skills [39]. The connection between self-efficacy and intention, established above, further contributes to this point, as the perception of the task’s difficulty is often rooted in the inherent belief in personal ability. Cultures, where men are expected to perform and evolve professionally, while women are not given the same chance, are likely to lead to this discrepancy in self-assessment.

The progress in women’s education and their entrepreneurial intent is also researched by several authors. Most notably, Aleidi and Chandran consider the place of women in the IT industry of Saudi Arabia [2]. The authors determine that both sociocultural and technological factors play a role in their motivation. For instance, if women get more opportunities to contribute to the field, while also acquiring necessary skills, they would be more likely to participate and develop self-efficacy needed for entrepreneurship [2]. The presence of role models and the elimination of stereotyping are listed as further actions required to provide women with more reasons to develop a positive attitude toward entrepreneurship. Thus, studies that consider the topic of gender focus on systemic and societal changes.

The second topic – collectivism and individualism – is less researched in the selected works. The most interesting finding is present in the study by Siu and Lo, who find that, in China, people’s connectedness plays a great role in their entrepreneurial intention [31]. This means that self-efficacy, a factor considered foundational in most articles, is less valued in this community where peer and family interactions are considered as one of the basic elements of people’s decision making. While the personal choice is still important as it leads to motivation, it is not the only contributor to one’s attitude toward entrepreneurship. Family interactions can both inspire people to start a business and limit their opportunities for doing that.

Finally, the topic of age is most often viewed in relation to risk aversion and previous experiences. On the one hand, it is found that some people view entrepreneurship positively due to prior encounters [18]. On the other hand, greater age is connected to higher risk intolerance and fear of failure [9]. Notably, Zhang et al. find that one’s experience with entrepreneurship can be a barrier to future attempts [40]. Overall, most articles consider young individuals’ intentions, choosing students as the primary group. Therefore, age is not at the center of the discussion at present, and the information is inadequate to make conclusions.

Family Support and Social Networking

As noted above, family support can greatly benefit one’s positive view of entrepreneurship. Connections, as a whole, are found to impact entrepreneurial intention significantly. Social networking is one of the ways to increase motivation and help young entrepreneurs to start their careers [29]. Peer support is necessary to enhance self-efficacy and disseminate knowledge. Professional connections can also serve as an entry point into the field of business, and their existence raises one’s desire to participate. Several studies agree on the benefits of familial ties and networking, and there are no contrasting findings that would devaluate these connections. However, some researchers argue that the personal level of influence is not the most important in increasing people’s intention. A study by Saeed highlights the role of systemic benefits provided by the government and educational organizations [27]. Therefore, while family and peer support are vital, it is not the only pillar of increasing entrepreneurial intention in developing countries.

Government and Education

A higher level of intervention to generate entrepreneurial intention is institutional support. Many scholars note the role of knowledge, and entrepreneurship-specific education (ESE) is presented as the primary factor in supporting this sphere of business. According to Sondari, the knowledge and skills obtained during such programs do not only provide the basis for starting a business [33]. They also improve the view of entrepreneurship, challenging the fear of failure and explaining the benefits of this approach. Moreover, training helps people assess their behavior control adequately and see their strengths and weaknesses. This leads to improved self-efficacy – the central personal factor that leads to high entrepreneurial intention.

The support from the government is another level of systemic change that is found to increase entrepreneurial intention. Researchers offer several programs and changes that each of their respective countries can implement, but they all have similarities. First of all, the support for education has to be mentioned as it is connected to the previous factor. The lack of ESE in a country cannot be addressed without the help of the government in developing countries where the financial situation is often strenuous [17]. Thus, many people do not know enough to pursue entrepreneurship, focusing on its risks and adverse outcomes. Aleidi and Chandran provide an example of Saudi Arabia, where governmental support of education has raised the number of young entrepreneurs and helped women to excel in the field of IT [2]. This scenario, while not possible for all developing countries due to the lack of resources, shows how the connection between support and knowledge leads to positive effects.

Another change is the increased support for small businesses, their establishment, and management. This may include financial elements such as tax cuts or exemptions, favorable policies for opening a business, and access to loans and funds. Furthermore, the reduction in paperwork-based procedures and “red tape” are considered as ways to make the process of running a small business simpler and more accessible (Gerald and Saleh 10715). The understanding of the processes that are involved in entrepreneurship plays a significant role in a positive attitude. Thus, by lowering the entry barrier, a government can contribute to its economy while uplifting entrepreneurs.

Limitations and Conclusion

This study’s limitations are directly related to the amount and scope of available knowledge. The selected studies showcase a small part of all existing materials. Moreover, as most of them consider only one country, there are no connections between developing countries in original texts. While the conclusions in most articles agree with each other, it is possible that some developing countries will be unable to use this knowledge for their benefit. For example, it is clear that the experience of Saudi Arabia may be different from that of Nigeria or Iran due to the political and economic situation and people’s access to resources. Moreover, while these nations have similarities in their economy, their cultural backgrounds are unique, which makes the assessment of personal and collective traits complex.

Overall, however, it is possible to conclude that entrepreneurial intention in developing countries depends on a variety of factors on personal and systemic levels. The concept of self-efficacy seems to be the most vital part of one’s ideology, and it can be improved through peer support and education. Learning is foundational for increasing motivation and developing skills for future entrepreneurs, while also removing barriers for women. Finally, governmental support (both financial and social) is also necessary to make sure that new businesses flourish – the lack of such assistance is a major barrier that many individuals cannot overcome of their own.

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