Emancipatory entrepreneurship in postcolonial economies: The clash of institutional systems in the Kejetia marketplace

Abstract

This study explores emancipatory entrepreneurship in postcolonial economies where Western bureaucratic and Indigenous traditional systems simultaneously influence entrepreneurial activities. In Kumasi Ghana, the reconstruction of the Kejetia Marketplace was funded by foreign investment and required formal business registration, effectively excluding informal entrepreneurs. Using process tracing, we analyze how informal entrepreneurs leveraged various forms of Indigenous capital and engaged interstitial actors to convert it into actionable capital within the Western system. This process enabled them to overcome their initial exclusion as they built a series of emancipatory structures, culminating in the elimination of the constraint of formalization in the New Kejetia and opening new opportunities for inclusion. Our findings reveal the significance of Indigenous systems in navigating bureaucratic constraints, contributing to the emancipatory entrepreneurship literature by showing how postcolonial contexts both motivate and shape the emancipatory efforts of marginalized entrepreneurs.

Executive summary

This study explores emancipatory entrepreneurship in postcolonial economies, contexts where both a Western bureaucratic institutional system and Indigenous traditional institutional system influence entrepreneurial activities. Emancipatory entrepreneurship involves overcoming constraints, often faced by marginalized groups seeking to improve their structural positions. In Kumasi Ghana, our central case study, the reconstruction of the Kejetia Marketplace was funded by foreign investment and required formal business registration. This policy excluded petty traders who lacked formal property rights. Using process tracing, we analyze how these entrepreneurs leveraged various forms of Indigenous capital, and by engaging interstitial actors, transformed it into effective action in the Western system. This process enabled them to overcome their initial exclusion as they built a series of emancipatory structures, culminating in the elimination of the constraint of formalization in the New Kejetia and making new opportunities accessible to petty traders. Our findings reveal the significance of Indigenous systems in navigating bureaucratic constraints, contributing to the emancipatory entrepreneurship literature by showing how postcolonial contexts both motivate and shape the emancipatory efforts of marginalized entrepreneurs. We contribute to emancipatory entrepreneurship literature by highlighting the role of Indigenous perspectives in understanding entrepreneurial agency in postcolonial settings. We offer insights into how Indigenous actors respond to bureaucratic constraints through emancipatory actions, emphasizing community well-being alongside profit and efficiency. Additionally, we position colonial legacies as central to analyzing entrepreneurial activity, providing generalizable insights into the dynamic interactions between bureaucratic and Indigenous institutional systems.