A Note on Human Resources in Developing Economies

Entrepreneurs seeking to start companies in developing economies face significant human resource challenges. Before embarking on their ventures, entrepreneurs should articulate a talent management strategy that describes how they will source, identify, screen, and manage employees, including rank and file workers, mid-level managers, and senior executives as the company scales. In developing such a strategy, the most important considerations will include how much and what kinds of human capital are present, the availability of tools to effectively identify and screen candidates, local culture, and the flexibility of the labor market. Drawing from interviews with entrepreneurs and investors across a number of countries in Asia, the Middle East, Africa, and Latin America, this note explores several major human resource challenges found in developing economies and the strategies entrepreneurs have employed to meet these challenges.