Outside vs. Inside Entrepreneurs: When Institutions Bind and Favors Blind

Abstract:

In some societies, entrepreneurs coming from outside of a community (i.e., outside entrepreneurs) are more active than entrepreneurs from within the community (i.e., inside entrepreneurs). Institutions and relationships that entrepreneurs entertain may hamper insiders from starting or succeeding. Institutional economics and anthropology suggest that, rather than outside entrepreneurs having more resources, the case may be that inside entrepreneurs could be hampered by existing institutions that blind and social relations that bind. Outsiders, however, may be less inclined to generate societal value in a community.

Keywords:

• entrepreneurship
• gift-giving
• inside entrepreneurs
• institutions
• outside entrepreneurs.

JEL Classification Codes:

• L26
• O17
• D02

Additional information

Notes on contributors

Wilfred Dolfsma

Wilfred Dolfsma is a professor of innovation and entrepreneurship at Loughborough University (London, UK) and director at the Glendonbrook Institute for Enterprise Development (London, UK).

Francis de Lanoy

Francis de Lanoy is a rector of the University of Curaçao (Curaçao). The authors are grateful to Sulmahine Kwidama and Marletti Regina for collecting relevant data and information.