Edited by Paula Kyrö
Chapter 17: The entrepreneurial contribution of foreign-owned companies to the sustainable development of a small developing host economy
The sustainability of development is of ever-growing importance. From one viewpoint, sustainable development ‘is a pattern of resource use that aims to meet human needs while preserving the environment so that these needs can be met not only in the present, but also for future generations to come’ (Sorin and Irina, 2009: 230). In social sciences, the notion of sustainability is often used more generally to imply the viability and continuation of certain trends or development processes (which may incorporate environmental, economic and social aspects) in the future (e.g. see Chaudhury, 2010; Collins and Grimes, 2008). Small economies are characterized by limited resources. The scarce domestic endowments of human capital and sometimes also knowledge resources are compensated for by using foreign resources, especially in the form of foreign direct investment (FDI) (see also Griffith, 2007). In addition to larger international companies, foreign direct investments are provided by foreign entrepreneurs and entrepreneurial small and medium-sized enterprises (SMEs). These entrepreneurs are likely to have business expertise and knowledge superior to that of domestic counterparts. However, not every investment received contributes to the sustainable development of the host economy. The entrepreneurial culture, which forms the basis for entrepreneurship, has been defined as ‘the composite of personal values, managerial skills, experiences and behaviours that characterize the entrepreneur in terms of a spirit of initiative, risk-propensity, innovative capacity and management of a firm’s relations within the economic environment’ (Minguzzi and Passaro, 2000: 182).
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