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Building on Existing Social Norms

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Trust: Creating the Foundation for Entrepreneurship in Developing Countries is a four-chapter book with an introduction published by Berrett-Koehler Publisher in 2018 and written by Tarun Khanna, professor at Harvard Business School. Entrepreneurs in developing countries with great ideas cannot rely on the usual foundations for an efficient business climate-laws, regulatory oversight, and government protections-as they might in the developed world. As a result, these entrepreneurs must not only create, but also create the conditions to create. One important lesson of this book is that obstacles to entrepreneurship and the necessary creation of trust in businesses in the developing world must be tackled holistically. The problems facing entrepreneurs in the developing world can neither be easily modularized nor tackled in bits and pieces. Professor Khanna shares many insights with readers on how to build and develop that trust. In Chapter 3, Building on Existing Social Norms (36 pages), Professor Khanna shows that entrepreneurs will find it far easier to weave their webs of trust in the developing world if they capitalize on constructive, preexisting social norms and practices. These have often been in place for decades, if not centuries, in long-running, thriving societies. In this chapter, this web of trust can be seen playing out on a nationwide scale with entrepreneurs trying to develop financially and socially sustainable microfinance firms in both Mexico and India, while in the process propelling millions of their clients-mostly poor women-out of their subsistence existence.
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