Identifying the Key Factors Affecting Entrepreneurial Success in Developing Economies: A Qualitative Approach
Keywords:
Entrepreneurial success, developing economies, qualitative research, institutional barriers, resilience, socio-cultural influences, Tehran, NVivo, gender and entrepreneurship, startup ecosystemsAbstract
This study aims to explore and identify the key individual, institutional, and socio-cultural factors influencing entrepreneurial success in developing economies through the lived experiences of active entrepreneurs in Tehran, Iran. A qualitative research design was employed using semi-structured, in-depth interviews with 28 entrepreneurs operating in various sectors across Tehran. Participants were selected using purposive sampling, ensuring diversity in industry and stage of venture development. Data collection continued until theoretical saturation was achieved. The interviews were transcribed verbatim and analyzed using thematic analysis with the assistance of NVivo software. The research adhered to trustworthiness principles, including member checking and peer debriefing, to ensure analytical rigor. Three overarching themes emerged from the data: (1) Entrepreneurial ecosystem factors, including access to finance, infrastructure, regulatory barriers, and institutional support; (2) Personal and psychological attributes such as resilience, self-efficacy, adaptability, and intrinsic motivation; and (3) Socio-cultural and contextual influences, including social networks, cultural norms, gender-specific challenges, and macroeconomic instability. Entrepreneurs highlighted a strong reliance on informal systems, creative resource use, and personal determination in navigating structural and environmental constraints. Female participants reported additional cultural and structural barriers to entry and growth. The findings underscore the interaction between internal competencies and external environmental conditions in shaping entrepreneurial outcomes. Entrepreneurial success in developing economies is a multidimensional phenomenon shaped by the dynamic interplay of individual traits, socio-cultural context, and ecosystem-level conditions. Policymakers and practitioners must adopt a holistic and context-sensitive approach to support entrepreneurs by improving regulatory environments, enhancing financial access, promoting inclusive training, and fostering cultural acceptance of entrepreneurship as a viable career path.
Downloads
References
Acs, Z. J., Desai, S., & Hessels, J. (2008). Entrepreneurship, economic development and institutions. Small Business Economics, 31(3), 219–234. https://doi.org/10.1007/s11187-008-9135-9
Aidis, R., Estrin, S., & Mickiewicz, T. (2008). Institutions and entrepreneurship development in Russia: A comparative perspective. Journal of Business Venturing, 23(6), 656–672. https://doi.org/10.1016/j.jbusvent.2008.01.005
Aterido, R., Hallward-Driemeier, M., & Pagés, C. (2011). Big constraints to small firms’ growth? World Bank Economic Review, 25(3), 438–461. https://doi.org/10.1093/wber/lhr018
Autio, E., & Acs, Z. (2010). Intellectual property protection and the formation of entrepreneurial growth aspirations. Strategic Entrepreneurship Journal, 4(3), 234–251. https://doi.org/10.1002/sej.93
Baker, T., & Nelson, R. E. (2005). Creating something from nothing: Resource construction through entrepreneurial bricolage. Administrative Science Quarterly, 50(3), 329–366. https://doi.org/10.2189/asqu.2005.50.3.329
Batjargal, B., & Liu, M. (2004). Entrepreneurs’ access to private equity in China: The role of social capital. Organization Science, 15(2), 159–172. https://doi.org/10.1287/orsc.1030.0016
Bruton, G. D., Ahlstrom, D., & Obloj, K. (2008). Entrepreneurship in emerging economies: Where are we today and where should the research go in the future. Entrepreneurship Theory and Practice, 32(1), 1–14. https://doi.org/10.1111/j.1540-6520.2007.00213.x
Busenitz, L. W., Gomez, C., & Spencer, J. W. (2000). Country institutional profiles: Unlocking entrepreneurial phenomena. Academy of Management Journal, 43(5), 994–1003. https://doi.org/10.5465/1556423
Creswell, J. W., & Poth, C. N. (2018). Qualitative Inquiry and Research Design: Choosing Among Five Approaches (4th ed.). SAGE Publications.
Gries, T., & Naudé, W. (2011). Entrepreneurship and human development: A capability approach. Journal of Public Economics, 95(3-4), 216–224. https://doi.org/10.1016/j.jpubeco.2010.11.008
Hofstede, G. (2001). Culture's Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations (2nd ed.). Sage Publications.
Jamali, D. (2009). Constraints and opportunities facing women entrepreneurs in developing countries. Gender in Management, 24(4), 232–251. https://doi.org/10.1108/17542410910961532
Khanna, T., & Palepu, K. G. (2010). Winning in Emerging Markets: A Road Map for Strategy and Execution. Harvard Business Press.
Khosravi, S. (2018). Precarious Lives: Waiting and Hope in Iran. University of Pennsylvania Press.
Luthans, F., & Youssef, C. M. (2007). Emerging positive organizational behavior. Journal of Management, 33(3), 321–349. https://doi.org/10.1177/0149206307300814
Manolova, T. S., Eunni, R. V., & Gyoshev, B. S. (2008). Institutional environments for entrepreneurship: Evidence from emerging economies in Eastern Europe. Entrepreneurship Theory and Practice, 32(1), 203–218. https://doi.org/10.1111/j.1540-6520.2007.00222.x
Markman, G. D., Baron, R. A., & Balkin, D. B. (2005). Are perseverance and self-efficacy costless? Human Resource Management Review, 15(2), 139–154. https://doi.org/10.1016/j.hrmr.2005.01.002
McMullen, J. S., & Shepherd, D. A. (2006). Entrepreneurial action and the role of uncertainty in the theory of the entrepreneur. Academy of Management Review, 31(1), 132–152. https://doi.org/10.5465/amr.2006.19379628
Naudé, W. (2010). Entrepreneurship, developing countries, and development economics: New approaches and insights. Small Business Economics, 34(1), 1–12. https://doi.org/10.1007/s11187-009-9198-2
Roomi, M. A., & Parrott, G. (2008). Barriers to development and progression of women entrepreneurs in Pakistan. Journal of Entrepreneurship, 17(1), 59–72. https://doi.org/10.1177/097135570701700105
Rauch, A., & Frese, M. (2007). Let’s put the person back into entrepreneurship research. European Journal of Work and Organizational Psychology, 16(4), 353–385. https://doi.org/10.1080/13594320701595438
Webb, J. W., Tihanyi, L., Ireland, R. D., & Sirmon, D. G. (2009). You say illegal, I say legitimate: Entrepreneurship in the informal economy. Academy of Management Review, 34(3), 492–510. https://doi.org/10.5465/amr.2009.40632826
Welter, F. (2011). Contextualizing entrepreneurship—conceptual challenges and ways forward. Entrepreneurship Theory and Practice, 35(1), 165–184. https://doi.org/10.1111/j.1540-6520.2010.00427.x
Downloads
Published
Submitted
Revised
Accepted
Issue
Section
License
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.
