Legal Frameworks Shaping Entrepreneurial Growth in Emerging Economies

Entrepreneurship is widely recognized as a critical driver of economic growth, innovation, and employment, particularly in emerging economies. However, the trajectory of entrepreneurial development is significantly influenced by the legal and regulatory frameworks within which businesses operate. This paper examines how legal structures—including corporate laws, intellectual property rights, contract enforcement, bankruptcy regulations, and labor laws—affect entrepreneurial growth in emerging economies. Through a synthesis of literature and analysis of selected case studies, the paper highlights the challenges and opportunities posed by legal frameworks. It argues that while legal frameworks can act as enablers of entrepreneurship by providing predictability, protection, and access to resources, rigid or unclear regulations can stifle innovation and limit market participation. Policy recommendations are provided to strengthen legal environments in ways that balance regulatory oversight with entrepreneurial flexibility.