Entrepreneurship policy and systemic conditions: Evidence-based implications and recommendations for emerging countries

Entrepreneurship policies are now widely spread among the general policy agenda in most of the countries. In particular, emerging countries started to focus on startups and young firms as potential engines of economic growth and structural transformation. Therefore, several governments from these countries are devoting significant efforts to develop their entrepreneurial ecosystems and promote the emergence of new dynamic firms. However, data on entrepreneurship in these countries is scarce leaving policymakers without a clear evidence-based platform for designing their policies and programs. This paper tries to contribute to this task in two manners. First, it presents a systemic conceptual approach to guide the design of entrepreneurship policies that explicitly includes the structural factors acting act as barriers in less developed contexts. Secondly, Based on the information from the IDE (Index of Dynamic Entrepreneurship) this study advances into the characterization of six different configurations of systemic conditions – three of which include emerging countries – analyzing their main strengths and weaknesses. Hence, this article provides a new evidence-based platform to identify and discuss the heterogeneity among ecosystems in emerging countries and suggests several policy recommendations for those governments that want to implement new entrepreneurship policies. At the same time, they introduce to the literature new concepts such as ‘systemic balance’ and ‘dual ecosystems’, which serve to characterize most of the observed configurations of systemic conditions for entrepreneurship in less developed regions. All in all, the results of this study would serve to guide policymakers to formulate their policies in a more contextualized framework.