Adam Smith Business School

The secrets of how marginalised entrepreneurs in emerging economies can overcome significant barriers to succeed, is revealed in a new University of Glasgow academic study.

The research explores the social, financial and institutional barriers they face, the strengths they develop, and factors that enable them to take entrepreneurial action globally.

Qualitative case studies of grassroots entrepreneurs in Gujarat, India from marginalised backgrounds showed each faced limited resources, social exclusion, gaps in international business knowledge and limited access to formal business networks.

To overcome this, each independently developed key entrepreneurial advantages such as perseverance, creative problem-solving and strong local networks.

They were resourceful, innovative, and capable of creating solutions with broad impact, and despite their challenges, the grassroots innovations had global scalability and the potential to contribute to sustainable development.

The work also highlights the crucial role intermediary organisations play in bridging knowledge and resource gaps, enabling these entrepreneurs to enter international markets.

Dr Abrar Ali Saiyed from University of Glasgow Adam Smith Business School and report co-author said: “This research sheds light on the challenges grassroots entrepreneurs face in expanding internationally and highlights the crucial role of intermediaries in helping them navigate these obstacles. By harnessing their grassroots strengths/advantages—such as creative problem-solving, perseverance, local knowledge, and strong community networks—entrepreneurs, with the motivation, support, resources, and guidance from intermediaries/gatekeepers, can break through barriers and excel in global markets.”

The findings suggest that international business ecosystems need to be more inclusive, ensuring that marginalised entrepreneurs have access to opportunities, rather than being limited by systemic barriers.

The research was conducted by University of Glasgow Adam Smith Business School in collaboration with Nijmegen School of Management, Radboud University, Butler University and University of Turku.

This work is set to benefit marginalised entrepreneurs by understanding the role of intermediaries and how to leverage their strengths for internationalisation; policymakers and development organisations to design better support structures that facilitate access to international markets and those investors and ecosystem builders who seek to support scalable innovations from underrepresented entrepreneurs.

Future research could explore additional mechanisms beyond intermediaries that can help marginalised entrepreneurs scale their innovations internationally.

 

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First published: 20 February 2025