Entrepreneurship Research In Emerging Markets: New Theoretical Approaches

Much of entrepreneurship research has been focused on economically developed countries and its potential impact on subsistence economies has generally been ignored. As an outcome of their exhaustive review of comparative international entrepreneurship, it is suggested that future research include “underexplored countries, particularly those from the developing world”. It is also revealed that only six percent of studies included BRIC countries and that less than one percent of the authors came from these countries. Further a case is also made as to how African phenomena can be the basis for the development of new theories and frameworks. A similar case can be argued for EMs in general. Given the importance of context in understanding EM entrepreneurship, EM conditions such as poor infrastructure, institutional voids, external shocks (e.g. famine, wars and disease), corrupt and inefficient governance are all important contextual factors to consider. As large numbers of new workers enter the EM workforce in the coming years, the likelihood is that job creation will struggle to keep up. Necessity entrepreneurship is one response to this pressure but scholars also need to examine the innovative ways by which opportunity entrepreneurs can create scalable businesses that can create employment and contribute to economic development in the often resource-starved landscape.