INSTITUTIONAL AND POLICY FRAMEWORKS SUPPORTING ENTREPRENEURSHIP-LED POVERTY REDUCTION IN DEVELOPING ECONOMIES
Keywords:
Entrepreneurship, poverty reduction, institutional frameworks, public policy, developing economies, inclusive growth, small and medium enterprises.Abstract
This study examines the role of institutional and policy frameworks in promoting entrepreneurship as a sustainable mechanism for poverty reduction in developing economies. Drawing on the theoretical foundations of new institutional economics and inclusive growth, the research analyzes how regulatory quality, access to finance, entrepreneurial support systems, and government interventions influence the effectiveness of entrepreneurship-driven poverty alleviation strategies. Using a mixed-methods approach that combines cross-country panel data analysis with qualitative case studies from selected developing economies, the study identifies key institutional enablers that foster productive entrepreneurship, employment generation, and income diversification among vulnerable population groups. The findings reveal that countries with coherent entrepreneurship policies, strong legal institutions, and inclusive financial systems demonstrate significantly higher poverty reduction outcomes compared to those with fragmented or weak institutional environments. The study contributes to the literature by proposing an integrated policy framework that aligns institutional reforms with entrepreneurship development strategies, offering practical implications for policymakers aiming to achieve inclusive and sustainable economic development.
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