Entrepreneurial Innovation and Start-Up Ecosystem Growth in Emerging Markets

Abstract

Entrepreneurial Innovation is a powerful catalyst for economic development and diversification in Emerging Markets (EMs). This paper examines the dynamic relationship between local innovation and the accelerated growth of start-up ecosystems within these rapidly evolving economies. The core driver of this growth is the ability of local entrepreneurs to develop frugal and disruptive innovations tailored to solve unique, low-income market challenges (e.g., infrastructural deficits, limited connectivity, and accessibility issues). We argue that ecosystem growth requires strategic intervention—specifically, publicprivate partnerships focused on risk capital provision (Venture Capital, Angel Investment), incubation support, and robust regulatory frameworks that protect intellectual property while promoting ease of doing business. The success of these ecosystems is fundamental to achieving sustainable, inclusive growth that transitions economies from resource dependence to knowledge-based prosperity.