Special Topics in

Entrepreneurship
Week 4– Entrepreneurship in
Emerging Economies
Lecture Outline

What really interests me in entrepreneurship?

Emerging markets
Institutional voids
Institutional voids in Egypt
Examples
Study resources
 What really
interests me in
entrepreneurship?
Market
 “Emerging markets” is a term that refers to an
economy that experiences considerable
economic growth and possesses some, but not
all, characteristics of a developed economy.
Emerging markets are countries that are
transitioning from the “developing” phase to the
Emerging “developed” phase.

Markets
Emerging markets are economies that show
some of the traits of developed economies but
aren't quite at the same level yet.
 A rapid pace of economic development

Government policies favouring economic liberalization

and the adoption of a free-market system

Emerging Growth and investment potential

markets Lower than average per capita income

Transitioning. Fred Riggs: Prismatic Societies

So many problems, so many opportunities

Institutional Voids

• Absence of business intermediaries. The absence or underdevelopment of formal

institutions and/or mechanisms that support business activities
• Lack of developed infrastructure and institutions, which we often take for granted in
advanced economies, hinder efficient business operations, resulting in an institutional
void
• Institutional voids can either be seen as barriers to entrepreneurial activity or catalysts
for entrepreneurial innovation
• Requires an entrepreneurial mindset to spot and attempt to solve
• In Nigeria, official banks sometimes charge up to 27% a year on a loan. In a developed
market like the Netherlands, the interest rate on a business loan is often less than 10%
• Clean water in Africa - Delivering Covid vaccines in poor countries
Institutional voids in Egypt
Transportation –
how do you get a
Healthcare Education Vocational training Traffic - accidents Law enforcement
patient to a
hospital?

Copyrights and
Bureaucracy of
Corruption intellectual Drug addiction Harassment Homeless people
public servants
property

Hiring skilled
Lack of data and
Clean water and labour – absence
FinTech the informal Raising capital Will related issues
water scarcity of job recruiters &
economy
poor education

IT Infrastructure
 • Healthcare voids in emerging economies
• Absence of proper referrals
• Drug authenticity – fake medicine
• Sterilization of equipment
• Honest diagnosis
Institutional • Credible information on the quality of service
Void providers
• Enforcement mechanisms that serve patients in
Example: case something went wrong
• Mystery shopping in public health sectors for
Healthcare quality assurance
• No mechanisms (missing or inadequately developed)
to protect the patient in emerging economies, as
compared to developed ones
• NHS example. Established and harsh systems and
mechanisms
 Intervention: NGO

Mission: Policing local government corruption

Partners

• Presidency
• Philanthropists
• MPs
Institutional • Citizens

Void Example: Problems to be addressed

• Street sellers
Corruption • Garbage
• Bribes
• Unlicensed cafes

Activities

• Fundraising
• Mystery shopping
• Reporting
• Monitoring to ensure problems have been solved
• Suggesting sustainable solutions
 Examples of companies that capitalized on
institutional voids

Marsool Fawry Expandcart Domdom Vezeeta

ValU Ahl Masr Bey2ollak Shezlong Educatly

Reflection assignment

• Submit a reflection paper on Lesson 1 of the Harvard University

“Entrepreneurship in emerging economies” online course
 • Harvard University “Entrepreneurship in emerging
economies” online course (Introduction + lesson 1 only)
(Primary resource)
https://www.edx.org/course/entrepreneurship-in-
emerging-economies
• https://theses.ubn.ru.nl/bitstream/handle/123456789/682
3/Dijk%2C_Philip_van_1.pdf?sequence=1 (Primary
resource)
• http://www.rcmss.com/2014/IJPAMR-VOl2-
No3/Challenges%20and%20opportunities%20of%20Entrepr
eneurs%20in%20Emerging%20Economies.pdf (Primary
Study resources resource)

Extra resources
• https://www.hbs.edu/ris/Publication%20Files/17-
060_9db63930-4475-4eb5-ac48-a660e2d80690.pdf
• https://www.effectuation.org/wp-
content/uploads/2017/05/Bruton_et_al-2013-
Strategic_Entrepreneurship_Journal-1.pdf
• https://www.researchgate.net/publication/227959613_Entr
epreneurship_in_Emerging_Economies_Where_Are_We_To
day_and_Where_Should_the_Research_Go_in_the_Future