Fostering productive entrepreneurship in post-conflict economies: the importance of institutional alignment

Abstract

The aim of this article is to examine the impact of institutional development on entrepreneurship in post-conflict environments. Drawing on in-depth interviews with Kosovar entrepreneurs the article highlights how the experience of fostering entrepreneurship in a postconflict, new born state is distinct from transition economies. The article finds that Kosovo has not encountered the same institutional challenges which have stymied entrepreneurship in transition economies which have been hampered by 'path extension' of institutions. Instead there has been a 'path break' resulting in a reshaping of formal and informal institutions as supportive of entrepreneurship. However, while positive, the prevailing nature of much entrepreneurial activity is localised with only a limited impact on economic growth. The article concludes by making a number of contributions to institutional theory and policy.

The Effect of Business Enabling Policies, Tax Treatment, Corruption and Political Connections on Business Climate

“…Corruption acts as the 'grease the wheels' for entrepreneurial activity in emerging and transition economies where there is an institutional weakness [17], [28], [73]. In addition, entrepreneurs cannot operate independently of corruption in these countries [74]. As Goel et al [75] claims that entrepreneurs might also be involved in mutual corruption to counter law requirements.…”

Coming out of conflict: How migrant entrepreneurs utilise human and social capital

“…However, following the continuation of political and ethnic tensions, Kosovo unilaterally declared its independence in 2008 (Yannis 2009;Ivlevs and King 2012). It remains one of the poorest states in Europe (Ivlevs and King 2012;Krasniqi and Mustafa 2016;Williams and Vorley 2017) and has been plagued by high unemployment, low levels of growth, high levels of poverty and poor infrastructure (Krasniqi 2007;Hoxha 2009;Krasniqi 2014).…”

Institutions and Firms’ Performance in Transition Countries: The Case of Selected Cesee Countries

“…They found that participation in the informal economy results from the asymmetry between the norms, values and beliefs of citizens (informal institutions) and codified laws and regulations (formal institutions). Finally, Williams and Vorley (2017) analysed how the institutional environment influences the development of entrepreneurship in Kosovo, a post-conflict environment. They found that the alignment of institutional arrangements defines the extent to which entrepreneurial activity is productive.…”