Public Policy Effectiveness and Entrepreneurial Growth in Developing Markets

Abstract

<p>This paper examines how government policies shape entrepreneurial activity in developing economies, with a focus on India, Brazil, and South Africa. Drawing on institutional economics and the entrepreneurship literature, it argues that the effectiveness of public policy in fostering new venture creation depends not only on formal regulatory reforms but also on the degree to which informal institutions, enforcement capacity, and market conditions align with stated policy objectives. Evidence from the three country cases shows that even well-designed programs frequently produce limited results when implementation gaps, bureaucratic inertia, or credit market failures undercut their intent. The paper also identifies conditions under which policy interventions have demonstrably improved entrepreneurial outcomes, including streamlined business registration, targeted financing schemes, and coordinated ecosystems linking government, academia, and industry. Findings point to the need for context-sensitive policy design that accounts for each economy's structural characteristics rather than transplanting frameworks developed in advanced economies.</p>