Entrepreneurship in Developing Economies: An Analysis of the Impact of Innovation, Financing, and Government Policies on Startup Success

This paper examines the impact of three key factors (innovation, financing, and government policies) on the success of startups in developing economies. Innovation serves as a critical driver for creating competitive advantages and addressing local challenges, as evidenced by examples such as M-Pesa in Kenya and Jumia in Africa. Financing, encompassing microfinance, venture capital, and government grants, acts as the lifeblood for startup growth, despite challenges like stringent loan conditions. Government policies, including tax incentives and simplified business registration processes, foster a supportive environment, as demonstrated by the experience of Shenzhen, China. The study highlights the interconnectedness of these factors, where innovation attracts financing, and supportive policies facilitate access to capital. By addressing challenges such as inadequate infrastructure and bureaucratic hurdles, developing economies can strengthen their entrepreneurial ecosystems to achieve sustainable economic development. Recommendations include establishing innovation hubs, improving access to financing, developing supportive policies, and fostering public-private partnerships.