Diasporas and domestic entrepreneurs
Subtitle: evidence from the Indian software industry
By: Ramana Nanda, Tarun Khanna
Contributors: Khanna, Tarun; Harvard Business School
Edition: Rev.
Series: Working paper / Division of Research, Harvard Business School -- 08-003; Working paper (Harvard Business School) -- 08-003
Publisher: Division of Research, Harvard Business School
Published: 2009
Place of publication: Boston]
Number of pages: 21
Description: This study explores the importance of cross-border social networks for entrepreneurs in developing countries by examining ties between the Indian expatriate community and local entrepreneurs in India's software industry. We find that local entrepreneurs who have previously lived outside India rely significantly more on diaspora networks for business leads and financing. This is especially true for entrepreneurs who are based outside software hubs - where getting leads to new businesses and accessing finance is more difficult. Our results provide micro-evidence consistent with a view that cross-border social networks play an important role in helping entrepreneurs to circumvent the barriers arising from imperfect domestic institutions in developing countries.
Notes: "Revised February 2009"--Publisher's web site.

Includes bibliographical references.