Abstract
People in societies that are in dire need of social change—and who are struggling to make it—tend to figure out their situations in terms of fate. The majority of emerging economies are typical examples of such societies. However, “fate” is a misnomer, since the societies in question are powered by inherently dysfunctional economies that frustrate enterprise. Thus, thwarted ambitions are a common scene and really have nothing to do with fate. Yet fate plays cruel tricks sometimes. This reality has implications for the budding entrepreneurial talents that abound in emerging economies. Bank credit is a primary source of external financing for them—largely because capital markets are scarcely developed. But stock exchanges also play vital roles in fulfilling entrepreneurs' external financing needs. Unfortunately, the benefits of stock exchanges are fully realized mostly in economies with highly developed capital markets. Businesses and investors in emerging economies make do with basic and inefficient capital markets.
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