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Indu Peiris, Michèle Akoorie and Paresha Sinha

This chapter focuses on how external contextual factors shape entrepreneurial actions and also how entrepreneurial actions shape these contextual factors in return. Our study uses two in-depth cases studies to gain in-depth understanding of their contextual embeddedness. We also explore how industry knowledge is transferred to the locals as a result of political, market, and economic pressures and how institutional context made local managers break the norms, and with the help of social networks built over time, to set up their own ventures. This chapter makes contributions to the extant literature on context and entrepreneurship by using contextual embeddedness, in our study of entrepreneurs in a specific industry, in a specific landscape, we determine how temporal, industry and market, and social constructs can shape the development of an industry. This study found entrepreneurs to be change agents and shows how they can flourish under resource constraints and under conditions of adversity.

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Indu Peiris, Michèle Akoorie and Paresha Sinha

Entrepreneurial actions need to be financed either through external means or internally by the entrepreneur. However, obtaining debt and equity for a new venture may be extremely difficult for nascent entrepreneurs due to their lack of a track record, lack of experience, and no collateral. In this chapter we look at how entrepreneurs exploit their social capital using a bootstrapping strategy to bridge this resource gap. Using case study methodology we analyse six indigenous tea exporters in the Sri Lankan tea industry to investigate the underlying factors that led to successful exploitation of external social capital to access bootstrap resources. We provide insights into why and how entrepreneurs use social capital as a bootstrapping strategy and what brought the entrepreneurs and external networks together to create new resource configurations.

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Jonathan M. Scott, Paresha Sinha, Jenny Gibb and Michèle Akoorie

This chapter provides an introduction to this Handbook that aims to provide a range of contextualized perspectives on entrepreneurship in emerging economies. We begin by providing definitions of the term ‘Context’ and identify the contexts of relevance to entrepreneurship such as the social and institutional context. We recognize that the theories, processes and practices of entrepreneurship in emerging economies are likely to vary markedly from those in developed post-industrial economies. This perspective is adopted because we consider the national context that shapes incentives for both opportunity and necessity entrepreneurial efforts to differ in emerging economies. Next, we provide some statistics on emerging economy entrepreneurship in order to establish a foundation from which to synthesize some key literature, before we outline the chapters that appear in this Handbook. We conclude with future research directions.

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Khine Tin Zar Lwin, Paresha Sinha and Jenny Gibb

This chapter critically explores the institutional constraints, both formal and informal, conceived by entrepreneurs in Myanmar and the ways in which they attempt to cope with those constraints. Drawing upon in-depth interviews with entrepreneurs, the entrepreneurs perceive access to finance as major formal institutional constraints and a shift in values and norms of workers as major informal constraints, undermining their business activities. However, the constraints first tended to appear as an inadequacy or a lack of a support structure that is typical in transition economies. These shadows are from a historical institutional legacy in conjunction with contemporary evolving institutions that have either partial formal reforms or a shift in informal values. Consequently, entrepreneurs in Myanmar rely upon trust-based social capital, such as trust-based borrowing from social networks and hiring through social networks of current workers, to help mitigate the adverse effect of those institutional constraints, and in turn to sustain the survival and growth of their businesses.

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Edited by Paresha Sinha, Jenny Gibb, Michèle Akoorie and Jonathan M. Scott

This Research Handbook offers contextualized perspectives on entrepreneurship in emerging economies. Emphasizing how national context profoundly shapes incentives for entrepreneurial efforts, chapters dissect the opportunities emerging from various institutions and social practices from the Middle East, North and Sub-Saharan Africa, Asia and Latin America. This Handbook is an ideal guide for researchers working on emerging economies, particularly those with an interest in global entrepreneurship.
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Navjot Sandhu, Jonathan M. Scott, Jenny Gibb, Javed Ghulam Hussain, Michèle Akoorie and Paresha Sinha

Our exploratory chapter offers contextualized empirical evidence and theory of how entrepreneurial finance supports women-led firms in an emergent entrepreneurial ecosystem within the state of Punjab, in northern India. By emphasizing the social, cultural, and informal aspects, we posit that the Punjab context is an emergent entrepreneurial ecosystem in which informal institutions (social structure, culture, entrepreneurs, households, and lenders) and more formal institutions (such as formalized bank lending and educational establishments) are interwoven and interdependent. Drawing on questionnaires of selected women entrepreneurs located in five districts of the Punjab, we found that women entrepreneurs in emergent entrepreneurial ecosystems possess few overall assets, suffer from weak enforcement of financial rights and the existence of unequal inheritance rights. Consequently, they have limited access to community and social resources. Gender-based obstacles, conventional thinking and socio-cultural values aggravate the difficulties faced by women. Due to their lack of access to formal finance, women must approach informal lenders. For example, a quarter of women interviewed reported incidents of sexual harassment by informal lenders, especially in the rural and semi urban areas. Indeed, one-fifth who were exploited by informal lenders belonged to the scheduled classes or lower castes (Dalits: literally ‘the oppressed’), or so-called ‘untouchables’, illustrating the relationship between their caste and types of treatment and behaviour by these informal lenders.