Entrepreneurship Policy Design for Emerging Economies: Does the Stage of Development Matter?

This paper investigates the role of public policies in stimulating entrepreneurship in emerging economies. It emphasizes the importance of policy design and assesses its effectiveness across different stages of economic development. Using institutional theory, it reviews various studies to understand how institutional and policy reforms impact entrepreneurial activity. The review reveals a research gap concerning the relationship between development stages and entrepreneurship policies in emerging economies. It also highlights the need to understand better the measures and instruments required for relevant policy implementation at each stage. The paper underscores the necessity for supportive institutions to create effective policies encouraging entrepreneurial activity and new firm formation. It suggests that policymakers aiming to increase entrepreneurship rates should focus on understanding the critical elements of the institutional environment for their specific emerging economy, regardless of its stage of development.