Start-up of Small Manufacturing Ventures in Developing Countries *

Abstract

Most entrepreneurs wishing to set up a small manufacturing venture in a developing country underestimate the amount of time and funds required for bringing the plant on-stream. Study of the establishment of forty small and medium size manufacturing plants in Iran from 1972 to 1975 showed that contrary to one's intuition, the degree of this underestimation has no relation with the plant's technological or logistic complexities. Rather, a few other variables related to the management of the start-up project itself are the keys. Most important are certain attributes of the entrepreneur in charge of the project.