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Financial Systems and Their Influence on Entrepreneurial Development: Insights for Building Sustainable and Inclusive Ecosystems

Author

Listed:
  • Olha Prokopenko

    (Estonian Entrepreneurship University of Applied Sciences, 11415 Tallinn, Estonia
    Department of Business Economics and Administration, Sumy State Pedagogical University Named after A.S. Makarenko, 40000 Sumy, Ukraine)

  • Diana Sitenko

    (Department of Accounting and Audit, Karaganda University Named after Academician Ye.A. Buketov, Karaganda 100028, Kazakhstan)

  • Zamzagul Zhanybayeva

    (Department of Research and Forecasting of LLP «Center for Research, Analysis and Evaluation of Effectiveness», Supreme Audit Chamber of the Republic of Kazakhstan, Astana 020000, Kazakhstan)

  • Iryna Lomachynska

    (Department of Economics and Entrepreneurship, Odesa I.I. Mechnikov National University, 65000 Odesa, Ukraine)

  • Aibota Rakhmetova

    (Department of Research and Forecasting of LLP «Center for Research, Analysis and Evaluation of Effectiveness», Supreme Audit Chamber of the Republic of Kazakhstan, Astana 020000, Kazakhstan)

Abstract

The relationship between financial systems and entrepreneurial development is explored in this paper, specifically how the conditions and characteristics of a country’s financial system affect entrepreneurial opportunities within a space of sustainability and inclusivity. The study is conducted using a mixed methods approach consisting of both a systematic literature review and econometric modeling, coupled with qualitative analysis of a subsample of countries to analyze these dynamics. At a fundamental level, it seeks to analyze the dynamics of financial systems, including the regulatory frameworks, market structures, and access to finance, and their role in forming an entrepreneurial landscape and contributing to the development of sustainable and inclusive ecosystems. The results show strong patterns and challenges in how financial systems support entrepreneurship. Areas of investigation include the role of financial institutions and markets in organizing access to finance (including the impact of regulatory barriers on entrepreneurial activities) and the integration of sustainability principles in policy and practice. This study stresses the need to align financial system policies with the goals of sustainable entrepreneurship so as to facilitate inclusive economic growth. Additionally, the research points out directions for how to make finance more accessible, foster more innovation, and remove the inefficiencies of regulation. For policymakers, investors, and researchers, the insights are designed to improve the entrepreneurial ecosystems through targeted investments as well as simplifying the financial processes. Through proactive actions, stakeholders have the ability to utilize entrepreneurialism as a tool for economic growth, societal progress, and ecological sustainability. The findings of this research contribute to the current ongoing discourse in sustainable entrepreneurship by furthering the stream of debate proposing how financial systems facilitate or inhibit entrepreneurial outcomes.

Suggested Citation

  • Olha Prokopenko & Diana Sitenko & Zamzagul Zhanybayeva & Iryna Lomachynska & Aibota Rakhmetova, 2025. "Financial Systems and Their Influence on Entrepreneurial Development: Insights for Building Sustainable and Inclusive Ecosystems," JRFM, MDPI, vol. 18(3), pages 1-25, March.
    • Handle: RePEc:gam:jjrfmx:v:18:y:2025:i:3:p:131-:d:1604106
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    References listed on IDEAS

    as
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