Economic inequality – Is entrepreneurship the cause or the solution? A review and research agenda for emerging economies

In this paper we examine whether entrepreneurship is a cause or solution to economic inequality in emerging economies. Using an institutional lens, we review 40 articles and find that entrepreneurship can increase or decrease economic inequality, depending on the sector where it occurs (formal or informal), and its effect on institutions (making them more inclusive or more exclusive). To develop a future research agenda, we build on these insights by examining 68 additional articles on economic inequality in emerging economies from a range of disciplines. The result is a rich research agenda on entrepreneurship and economic inequality in emerging markets.