Entrepreneurial Dynamics in Emerging Economies
Summary
Entrepreneurial activity in emerging economies is driven by the interaction of institutional frameworks, social networks and resource constraints. In contexts where formal regulations are evolving and infrastructure may be deficient, entrepreneurs rely on adaptive strategies, informal partnerships and diaspora linkages to establish and grow ventures. The concept of an entrepreneurial ecosystem encompasses supportive policies, access to finance, mentorship, human capital and market access; its strength directly influences the rates of venture creation, innovation and scale-up. Knowledge spillovers within local clusters and across borders foster technological diffusion, while social capital builds trust and facilitates resource mobilisation where legal protections may be weak. Financial inclusion through microfinance and digital platforms has enabled wider participation, especially among marginalised groups, contributing to poverty alleviation and inclusive growth. Returnee entrepreneurs bring new skills and international networks, reinforcing regional innovation systems and encouraging technology transfer. Despite challenges such as limited credit, skills shortages and policy volatility, targeted interventions—combining training, blended financing and network building—demonstrate how resilient ecosystems can encourage sustainable enterprise, generate employment and support economic diversification in rapidly transforming markets.
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Entrepreneurial Dynamics in Emerging Economies publication trend
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Technical terms
Entrepreneurial ecosystem: A network of actors, policies, resources and institutions that support new venture creation and growth.
Knowledge spillover: The process by which information, skills or innovations propagate from one firm or cluster to another, fostering collective learning.
Social capital: The value derived from social networks, trust and norms that enable cooperation and resource exchange among actors.
Institutional framework: The formal and informal rules, regulations and cultural norms that shape economic and entrepreneurial behaviour.
Microfinance: Financial services, such as small loans and savings, provided to individuals or small businesses lacking access to conventional banking.
References
- Does entrepreneurship improve the livelihood of young people? Evidence from the NDE program beneficiaries in Kano state, Nigeria. Cogent Business & Management (2023).
- Impossible is nothing: Entrepreneurship in Cuba and small firms’ business performance. Journal of Small Business Management (2024).
- African returnees in international knowledge transfer: A social capital perspective. Journal of International Management (2024).
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