When we think of market-creating innovations – innovations that can spur economic growth, life changing development, and new markets – it’s tempting to imagine a lone microentrepreneur, a visionary founder who sees what others miss. But the reality is different. Market creation doesn’t happen because of a single microentrepreneur; it happens because an entire ecosystem rises up to make new consumption possible. From investors to educators, regulators to suppliers, it takes a coordinated, collective effort of an entire value chain to unlock prosperity at scale.
The lure of the microentrepreneur
In the development sector, we often celebrate the ingenuity and resilience of microentrepreneurs – as we should. Across emerging economies microentrepreneurs are symbols of determination, hustle, and hope. But while inspiring, the emphasis on these individuals risks obscuring a crucial reality: microentrepreneurs alone cannot create new markets, and therefore microentrepreneurs alone will not drive substantial, sustainable economic growth.
Without the necessary support systems, even the most dedicated entrepreneur struggles to survive, let alone thrive. This is particularly true in emerging economies where the necessary support systems don’t yet exist.
Market creation demands more than entrepreneurial spirit—it demands an enabling environment where innovation can move beyond survival mode and scale into something transformative.
Barriers hindering the microentrepreneur
As part of our current work researching market creation opportunities in Nigeria, we’ve studied various sectors—from mobility to chicken to diagnostics—and there are a couple of systemic barriers that consistently surface across all sectors:
- Capital gaps: Many microentrepreneurs lack access to the long-term, patient capital necessary to build businesses that serve nonconsumers. Limited flexible financing options limit growth.
- Workforce gaps: Educational systems often fail to equip individuals with the skills needed for the varying emerging industries. This gap leaves entrepreneurs with the added task of educating and training their workforce themselves.
- Regulatory uncertainty: Inconsistent or unclear regulations can stifle innovation before it ever gets off the ground. Entrepreneurs operating in informal or independent markets, for instance, may struggle with shifting compliance costs and policies.
- Infrastructure deficits: Poor transportation, unreliable electricity, and limited internet access create friction at every step of a business’s growth, adding costs and inefficiencies that few microentrepreneurs can afford.
But let’s look at an example of a successful company, such as MAX, working to expand access to affordable mobility in Nigeria. Their model isn’t succeeding simply because they have entrepreneurial talent—it’s succeeding because they are actively building, navigating, and influencing an ecosystem around financing, regulatory compliance, training, and infrastructure – pulling in microentrepreneurs as drivers in their larger ecosystem – and together conquering these barriers.
What successful ecosystem entrepreneurship looks like
Market-creating innovation thrives not because of lone microentrepreneurs, but because ecosystem entrepreneurship integrates microentrepreneurs and other key stakeholders so that together they can build flourishing markets. This means there must be collaboration between:
- Entrepreneurs who identify nonconsumption struggles and develop affordable, accessible solutions grounded in real needs for progress.
- Investors who are willing to provide patient capital, not just short-term returns.
- Educators and trainers who align programs with the actual demands of new industries.
- Regulators who create stable, enabling policies that allow formalization and growth.
- Suppliers and distributors who ensure that logistics, energy, and digital platforms are accessible and reliable.
When these actors work in concert, innovation doesn’t just emerge—it multiplies. New industries take root. Jobs formalize. Economic participation expands.
If we want to catalyze more market-creating innovations, our strategies must change. It is not enough to fund or train microentrepreneurs in isolation. Policymakers, investors, and development partners must come together to invest in patient capital, support workforce alignment, prioritize regulatory reforms, and provide enabling infrastructure.
Supporting an ecosystem is harder work than supporting individuals. It requires coordination, long-term thinking, and systemic patience. But it is the way to unlock innovation that reaches millions still locked out of economic opportunity.
Market-creating innovation is rarely the story of a lone hero. If we want to see true prosperity take root, we need to move beyond celebrating microentrepreneurs alone, and start investing in the ecosystems that allow them—and the markets they create—to thrive.
