Property Rights and Entrepreneurship in the Context of Conflict: Evidence from Amuda, Northeast Syria

This article examines how changes in property rights protection, resulting from the collapse of formal institutions during the Syrian conflict, have influenced entrepreneurial activity. The study draws on qualitative research conducted in 2021 and is based on semi-structured interviews with 46 entrepreneurs in the town of Amuda in northeast Syria, complemented by secondary data from local institutions and media sources. The findings reveal a distinctive pattern of entrepreneurship in a conflict-affected context. Following the Syrian regime’s loss of control over much of the region after 2012—previously characterized as a highly predatory state—and the emergence of a weak Autonomous Administration with limited institutional capacity, informal institutions assumed an increasingly important role in regulating economic activity. In this environment, informal social mechanisms, alongside the disruption of traditional supply chains, contributed to improved perceptions of property rights protection. As a result, Amuda witnessed the emergence of a new wave of predominantly productive and non-conflict-related entrepreneurship, rather than entrepreneurship driven solely by necessity or war-related opportunities. These findings challenge the prevailing consensus in the literature that entrepreneurship in conflict settings is primarily necessity-based. Instead, the study highlights the importance of context-specific institutional configurations and calls for a reassessment of dominant assumptions within conflict economics and entrepreneurship research.