Entrepreneurship in Emerging Markets

Abstract

0 this paper focuses on the importance of the institutional context in shaping the nature of entrepreneurship in emerging markets. More specifically, the paper argues that while the high degree of institutional uncertainty in emerging markets often acts as a barrier to entrepreneurship, it can also provide important opportunities for entrepreneurs. 0 We argue for the usefulness of recent work in neo-institutional theory as an approach to understanding the institutional context of emerging economies, and in particular for exploring the relationship between institutional uncertainty and entrepreneurship in emerging markets. 0 Drawing on neo-institutional theory, the paper develops a typology of possible institutional strategies available to entrepreneurs in emerging markets. Three strategies are identified: institutional brokering, spanning institutional voids, and bridging institutional distance. The success factors associated with each strategy are also considered. The paper concludes with a discussion of the implications of the framework for theory development and points to a number of areas for future research.

Sustainable Venture Capital Investments: An Enabler Investigation

“…The emerging markets present with a high level of institutional uncertainty where western theories for entrepreneurship may fail to work due to changing context and influencing factors [30,31]. London and Hart [32] argue that leveraging the advantages of the emerging economies through cooperation with non-traditional business partners, co-inventing unique programs and building the local capacity may be the best strategy.…”

Emerging Economies: Muddling Through to Development

“…In the emerging economies, institutions are highly volatile and unreliable about providing the aforesaid requirements of entrepreneurs, which ironically create entrepreneurial opportunities for institutional brokering, spanning institutional voids, and bridging institutional distances (Tracey and Phillips 2011). These opportunities help the firms of developed economies more than their counter parts in developing economies with business recovery, business making, and moneymaking (Tracey and Phillips 2011).…”

“…In the emerging economies, institutions are highly volatile and unreliable about providing the aforesaid requirements of entrepreneurs, which ironically create entrepreneurial opportunities for institutional brokering, spanning institutional voids, and bridging institutional distances (Tracey and Phillips 2011). These opportunities help the firms of developed economies more than their counter parts in developing economies with business recovery, business making, and moneymaking (Tracey and Phillips 2011). World Economic Forum Financial Development Report (WEF 2012b), ranks 62 of the world's leading financial systems and capital markets based on 120 parameters to create an assessment of the different aspects of complex financial systems, including the institutional environment, the business environment, financial stability, banks, capital markets, and overall capital availability and access.…”

Entrepreneurship in BRICS

“…They are characterized by a dynamic transition in governance, policies and institutions. Due to the long-term nature of such institutional transformations, various 'voids' appear in the short-term, hampering entrepreneurial activity (Tracey and Phillips 2011). Traditionally such institutional inefficiencies have been referred to as 'institutional voids' (Mair and Martí 2009;Mair et al 2012;Puffer et al 2010).…”