Entrepreneurial activities in a developing country: an institutional theory perspective

We find that language and gender, in addition to economic and political institutions, play a significant role in enabling and constraining entrepreneurial activities

Emiel L. Eijdenberg; Neil A. Thompson; Karen Verduijn; Caroline Essers

2018

Scholarcy highlights

  • A growing area of research aims to contextualise entrepreneurial phenomenon by investigating how institutional contexts enable and constrain entrepreneurial activities
  • Institutional constraints to entrepreneurial activities Our analyses show that entrepreneurs speak of high taxes, insufficient provision or access to public goods, arbitrary enforcement of rules and unclear rules and complicated bureaucracy as the core politically driven institutional constraints to their activities
  • Less known are the day-to-day, real-life experiences of, and creative responses to, institutional constraints emerging from the personal stories and reports of entrepreneurs
  • Literature on the institutional constraints to entrepreneurship recognises political, economic and cultural dimensions influencing entrepreneurial activity, but much of this research does not allow for details to emerge from local contexts and situations despite repeated calls do to so
  • We conducted an inductive study that has revealed new, in-depth insights in the impact of various institutional dynamics on everyday entrepreneurship in a developing economy. This adds to contributions setting out to understanding the complexities of everyday entrepreneurial life, including such experiences and events that might be considered too micro, or too mundane for most analyses
  • Our micro approach importantly enhances our understanding of how entrepreneurs cope in a constrained context, such as Tanzania, and how they find opportunities in local institutional occurrences

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