Limited Capital and New Venture Creation in Emerging Economies: A Model of Crowd-Capitalism

摘要

This paper discusses the construct of crowd-capitalism as a means of facilitating entrepreneurial activities in emerging economies often characterized by a collectivist culture. We contend that in such cultures, where group success is emphasized more than individual success, the group could become an agent of entrepreneurial activity and wealth creation. Thus, the group can become both an economic agent and an agent for social change. Crowd-capitalism is not limited to the informal economy, but could represent a valuable means of organization in the formal economy in both developing and developed countries. It could also lead to a greater level of entrepreneurial activity, particularly in cultures where cooperation and social capital are assets.