Accelerating entrepreneurial ecosystems in Muslim-majority countries: the impact of institutional quality, digital infrastructure, and economic factors on new business formation

Saqib Munir ()
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Saqib Munir: National University of Sciences and Technology

Future Business Journal, 2025, vol. 11, issue 1, 1-18

Abstract: Abstract Entrepreneurial activity lags markedly in Muslim-majority countries. Registrations average 2.1 per 1000 working-age people there against 3.8 in OECD economies (World Bank in https://www.worldbank.org/en/programs/entrepreneurship/methodology , 2023). This shortfall challenges Sustainable Development Goal 8.3 on inclusive growth. Contexts range from oil-rich Gulf states to resource-scarce Sahel nations. Our study introduces a framework blending institutional theory with resource-based views. We examine governance, digital infrastructure, and economic factors shaping entrepreneurial ecosystems. Data span 27 Muslim-majority countries from 2004 to 2023. A balanced panel supports the analysis. Panel GMM and Fixed Effects capture dynamics and endogeneity. These methods surpass static approaches. Evidence suggests robust governance and digital infrastructure promote new business formation. Higher economic development diverts resources from entrepreneurship in wealthier settings unexpectedly. Trade openness enhances entrepreneurship dynamically. Infrastructure and urbanization effects vary by context. Findings challenge neoclassical assumptions. They advocate governance reforms and digital investments for sustainable entrepreneurship advancing SDG 8.3. Future work must probe sub-national variations and cultural influences.

Keywords: Entrepreneurial ecosystems; Institutional quality; Digital infrastructure; Muslim-majority countries; Governance-digital synergy; Panel GMM (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1186/s43093-025-00647-y

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