Micro-entrepreneurship in developing countries Challenges and success factors

There is a little systematic knowledge in the field of micro-entrepreneurship in the economy of developing countries. Although, micro-entrepreneurship has the potential for poverty reduction and national development, but in developing countries, have been used solely as a poverty reduction strategy. The nature of micro-entrepreneurship, in developing countries is different of developed ones. In developed countries, individuals move towards to creation micro-enterprises, with high human capital, but in developing countries, micro-enterprises form in informal sector and relying on low human capital, low personal or family financial capital, individual or family labor work and low social capital. This paper investigates the role of business development programs in micro-entrepreneurship and compares the nature of micro-entrepreneurship in developing countries with developed ones and Finally, discusses on mechanisms of micro-entrepreneur's success in developing countries that among which, we could point to individual characteristics of micro-entrepreneurs and their families, access to financial resources, providing appropriate human capital, social capital and external factors related to micro and macroeconomic situation of the country and the quality of infrastructures and institutions in the country.