Scalable Start-up Entrepreneurship and Local Economic Development in Emerging Economies

Abstract

Scalable start-up entrepreneurs work closely with technological innovation in order to improve people’s welfare and provide solutions to current issues. Despite the high risk inherent in start-ups, they have become a trending type of business in the world and therefore deserve adequate attention from scholars. This study aims to explore barriers to scalable start-up entrepreneurship. It further explores their contribution to local economic development in emerging economies by reviewing secondary data and existing literature. The lack of financial resources, government support, opportunity awareness role models, and managerial skills, in addition to the fear of failure, family pressure and ineffective entrepreneurship training, are common barriers to creating start-ups. Nevertheless, their contribution to local economic development is noteworthy. Scalable start-up entrepreneurs attract local and foreign investment and regenerate income, positively contributing to GDP per capita. They also play a role in job creation, helping governments to reduce poverty and increase the welfare of their citizens. Start-ups also create efficiency through e-commerce, helping local products to become more competitive in both local and global markets. By collaborating with governments, scalable start-ups can foster technological developments and become strategic partners of larger corporations. Start-ups can even increase people’s welfare by providing solutions to environmental issues that are a consequence of substantial development in emerging economies.