The purpose of this paper is to examine how entrepreneurs in emerging economies use their knowledge to help create new businesses and increase their profitability in the international marketplace. Emerging economies are playing an increasingly important part in the global marketplace, particularly in terms of how they use knowledge-based resources and entrepreneurial networks.
The methodological approach of this paper is to analyse the entrepreneurial processes in emerging economies by using the Global Entrepreneurship Monitor (GEM) to evaluate whether the stage of economic development affects intention rates of individuals to start new businesses. Utilising a panel approach to evaluating entrepreneurial intention from 2009 to 2013, a number of hypotheses are tested to see how entrepreneurial knowledge and network knowledge affect the likelihood to engage in new business activity.
These hypotheses are analysed based on the economic development stage of a country. The findings of the hypotheses suggest that entrepreneurial and network knowledge can help determine an individual’s intention to start a business, but although network knowledge is related to economic development, entrepreneurial knowledge is not significant.
The GEM report is helpful in seeing longitudinal changes in entrepreneurship from emerging economies. This helps increase research interest in emerging economies by encouraging more appropriate policy aimed at increasing new business creation.
Implications for entrepreneurs and public policymakers in emerging economies are stated, which suggest that it is important to foster entrepreneurship education. Suggestions for future research linking knowledge-based resources and entrepreneurial intentions in emerging economies are also highlighted.
The findings demonstrate that the propensity of individuals to engage in new business creation in emerging economies is different to those in developed countries because of funding constraints and lack of access to the appropriate skills.
