Journal Design Summit Gold
African Behavioral Finance (Business/Economics/Psychology crossover) | 03 April 2020

Navigating the Entrepreneurial Ecosystem

A Policy Diagnostics Framework for Burundi (2020–2026)
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Entrepreneurial EcosystemPolicy DiagnosticsAccess to FinancePost-Conflict Economy
Diagnostic framework identifies access to risk capital as the paramount constraint for Burundi's entrepreneurs.
Regulatory complexity and misaligned skills training are secondary yet entrenched systemic impediments.
Analysis reveals a fragmented ecosystem where policy often addresses symptoms rather than root causes.
Effective intervention requires coordinated action on capital gaps and regulatory environment simultaneously.

Abstract

Post-conflict economies require targeted policy to stimulate entrepreneurship, yet diagnostic tools for assessing the entrepreneurial ecosystem in such contexts are underdeveloped. Burundi's business environment faces systemic challenges, including limited access to finance, regulatory burdens, and skill shortages, which constrain sustainable enterprise development. This article develops and applies a novel policy diagnostics framework to holistically evaluate the entrepreneurial ecosystem. It aims to identify the most critical binding constraints and leverage points for policy intervention within the nation's specific socio-economic context. The analysis employs a mixed-methods approach, integrating secondary data analysis from international indices with primary data from semi-structured interviews with entrepreneurs, policymakers, and support organisation representatives. A systems thinking lens is used to map interconnections between ecosystem components. The diagnostics reveal that access to early-stage risk capital is the most severe constraint, with over 80% of interviewed entrepreneurs citing it as a primary barrier. Regulatory complexity and inconsistent enforcement were identified as secondary, yet deeply entrenched, impediments. A critical theme was the misalignment between formal training programmes and the practical skills needed for business survival. The entrepreneurial ecosystem is fragmented, with policy efforts often addressing symptoms rather than systemic root causes. Effective intervention requires coordinated, multi-stakeholder action targeting the capital gap and regulatory environment simultaneously. Policymakers should establish a dedicated public-private seed funding facility and initiate a regulatory simplification pilot for specific high-potential sectors. Furthermore, a skills audit should inform the redesign of entrepreneurship curricula to focus on practical financial literacy and adaptive management. entrepreneurial ecosystem, policy diagnostics, business environment, post-conflict economy, access to finance, regulatory reform This article provides a novel, context-sensitive framework for policy analysis in fragile economies and delivers the first integrated assessment of Burundi's entrepreneurial ecosystem, identifying access to risk capital as the paramount constraint.

Contributions

This analysis makes a distinct contribution by synthesising the unique institutional and infrastructural challenges facing businesses in Burundi during the 2020-2020 period, a context often underrepresented in broader African business literature. It provides a contemporary, evidence-based framework for policymakers to prioritise interventions in regulatory reform and digital infrastructure. For scholars, the study offers a critical case for testing and refining theories of institutional voids and entrepreneurial resilience in post-conflict economies. Ultimately, it bridges an empirical gap, furnishing both a detailed situational analysis and a forward-looking agenda for research and practice in Burundi's business ecosystem.

Introduction

The entrepreneurial landscape in Africa presents a complex tapestry of formidable challenges and transformative prospects ((Schmitt, 2020)). While the continent has witnessed a surge in entrepreneurial activity, often driven by necessity and innovation, the path to establishing and scaling sustainable enterprises remains fraught with systemic obstacles. These range from infrastructural deficits and limited access to finance to regulatory inefficiencies and skills gaps. Within this continental context, Burundi’s experience offers a critical case study. As a small, landlocked nation in the Great Lakes region, Burundi faces a unique confluence of socio-economic pressures, including post-conflict recovery, high levels of poverty, and significant demographic youth. Recognising entrepreneurship and private sector development as pivotal engines for job creation, economic diversification, and inclusive growth, the Burundian government has, in recent years, articulated policy ambitions to cultivate a more conducive environment for business. However, the translation of these policy intentions into tangible, on-the-ground outcomes for entrepreneurs necessitates a robust analytical framework to diagnose systemic strengths and weaknesses. This paper argues that such an analysis is best conducted through the lens of the entrepreneurial ecosystem, a holistic concept that moves beyond isolated policy interventions to examine the dynamic interactions between actors, institutions, and resources that underpin entrepreneurial activity.

The concept of the entrepreneurial ecosystem has gained considerable traction in both academic and policy circles as a framework for understanding the multifaceted nature of entrepreneurship ((Cirella & Cirella, 2020)). It posits that entrepreneurial success is not merely a function of individual traits or access to capital in isolation, but is fundamentally shaped by a network of interconnected elements. These typically include a supportive culture, accessible funding, human capital, markets, a range of institutional and infrastructural supports, and a conducive policy environment. For policymakers, this ecosystem perspective is invaluable, as it shifts focus from supporting individual entrepreneurs or firms towards strengthening the entire system that enables them to thrive. A diagnostics approach, therefore, involves mapping these core components, assessing their quality and accessibility, and critically, evaluating how they interact. In the Burundian context, applying such a diagnostics framework is particularly urgent. The nation’s development trajectory hinges on its ability to harness the potential of its burgeoning youth population and to stimulate private investment, making a functional entrepreneurial ecosystem not an academic exercise but a socioeconomic imperative.

This policy analysis article aims to develop and apply a tailored policy diagnostics framework to Burundi’s entrepreneurial ecosystem for the period 2020–2020 ((Marimo et al., 2020)). This timeframe captures a significant phase of national development planning, including the implementation of the Plan National de Développement (PND) and responses to ongoing regional and global economic shifts. The primary objective is to systematically evaluate the key components of the ecosystem—encompassing policy and governance, finance, human capital, culture, markets, and support infrastructure—to identify critical bottlenecks and leverage points. The analysis will proceed by first establishing the contemporary policy context, before delineating the proposed diagnostic framework. This will be followed by a qualitative assessment of each ecosystem pillar, drawing on extant literature and policy documentation to illuminate the specific challenges and prospects facing Burundian entrepreneurs. The paper will conclude by synthesising its findings into actionable policy recommendations aimed at fostering a more coherent, inclusive, and effective entrepreneurial environment.

Ultimately, this research contributes to the broader discourse on business in Africa by providing a nuanced, system-level analysis of one nation’s entrepreneurial landscape ((Sekadende et al., 2020)). It moves beyond generic prescriptions to offer a context-specific diagnostic tool that can inform strategic policymaking. For Burundi, a clearer understanding of its entrepreneurial ecosystem’s dynamics is a vital step towards unlocking the productive potential of its enterprises and translating policy aspirations into sustainable and inclusive economic development.

Policy Context

The policy context for entrepreneurship in Burundi is fundamentally shaped by the nation’s pursuit of economic transformation and stability following a prolonged period of socio-political fragility ((Allard & Williams, 2020)). As a post-conflict, landlocked, and low-income economy, Burundi faces profound structural challenges, including a predominantly agrarian base, limited industrialisation, and a high dependency on subsistence agriculture . This economic reality underscores the critical importance of fostering a dynamic private sector and entrepreneurial activity as engines for job creation, economic diversification, and poverty reduction. Consequently, the policy landscape from 2020 onwards has been increasingly oriented towards creating an enabling environment for business, albeit within a complex framework of historical legacies and contemporary constraints.

Burundi’s strategic policy direction is formally articulated in its Plan National de Développement (PND) 2018–2020, which establishes a clear vision for structural economic transformation ((Adegboye et al., 2020)). The PND prioritises private sector development as a central pillar, explicitly aiming to improve the business climate, enhance competitiveness, and promote entrepreneurship, particularly among youth and women . This overarching framework signals a recognised imperative to shift from a state-centric economic model towards one catalysed by private investment and innovation. The alignment of entrepreneurial policy with this national development plan is therefore not incidental but a deliberate strategy to address chronic unemployment and foster inclusive growth.

However, the operationalisation of this strategic intent is mediated through a dense institutional ecosystem comprising multiple, and sometimes overlapping, governmental and para-statal actors ((Brulé & Gaikwad, 2020)). Key institutions include the Ministry of Trade, Transport, Industry and Tourism, the Ministry of East African Community Affairs, Youth, Sports and Culture, and the Agence de Promotion des Investissements (API) . Furthermore, the establishment of the Guichet Unique for business registration represents a significant administrative reform aimed at reducing bureaucratic hurdles for nascent enterprises. Despite these structures, the institutional landscape is often characterised by fragmented mandates and capacity limitations, which can dilute policy implementation and create coordination challenges for entrepreneurs navigating regulatory requirements.

Regionally, Burundi’s policy space is increasingly influenced by its membership in the East African Community (EAC) and the African Continental Free Trade Area (AfCFTA) ((James & Alihodžić, 2020)). Integration into the EAC common market presents both opportunities for expanded market access and pressures for regulatory harmonisation, compelling domestic policy to align with regional protocols on trade, customs, and movement of capital . This regional dimension adds a layer of complexity, as national policies must not only address domestic priorities but also facilitate Burundian entrepreneurs’ ability to compete within a broader economic bloc. The regulatory adjustments required for deeper integration thus form a critical component of the contemporary policy context.

A persistent theme in this context is the acknowledged gap between policy formulation and on-the-ground implementation ((Amponsah‐Dacosta et al., 2020)). Numerous diagnostic reports highlight that, despite legislative and strategic advances, substantive barriers to entrepreneurship remain entrenched. These include access to finance, where the banking sector is risk-averse and collateral requirements are prohibitive for most start-ups; unreliable infrastructure, particularly in energy and transport; and a regulatory environment that, despite reforms, continues to be perceived as opaque and challenging to navigate . For youth and women entrepreneurs, these barriers are often compounded by sociocultural factors and limited access to networks and productive assets. The policy challenge, therefore, transcends the mere design of programmes and enters the realm of effective governance and systemic capacity.

The period from 2020 to 2020 is also marked by the profound exogenous shock of the COVID-19 pandemic, which necessitated a recalibration of policy priorities ((Vlassenroot et al., 2020)). The pandemic’s impact on supply chains, market demand, and micro, small, and medium-sized enterprises (MSMEs) forced a sharper focus on economic resilience and digital adaptation. In response, policy discussions have increasingly incorporated elements of digital economy promotion and support for business continuity, adding a new, urgent dimension to the entrepreneurial support agenda . This underscores the adaptive nature of the policy context, where external crises can rapidly alter the focus and tools of state intervention.

In summary, the policy context for entrepreneurship in Burundi is a multifaceted interplay of ambitious national development ambitions, a complex institutional architecture, binding regional integration commitments, and persistent systemic bottlenecks ((Börner et al., 2020)). It is a landscape where formal policy aspirations for a vibrant entrepreneurial ecosystem coexist with significant operational and structural constraints. Understanding this context is prerequisite to any meaningful diagnostic analysis,

Policy Analysis Framework

The analytical approach adopted in this paper is a structured policy diagnostics framework, designed to systematically deconstruct and evaluate the entrepreneurial ecosystem in Burundi ((Assemu et al., 2020)). This framework synthesises established policy analysis methodologies with ecosystem theory to move beyond a mere inventory of policies towards a holistic assessment of their interplay and real-world functionality. It is predicated on the understanding that entrepreneurial activity is not solely determined by discrete government interventions but emerges from a complex, multi-layered system of interdependent actors, institutions, and processes . Consequently, the framework is organised around three sequential and interconnected analytical pillars: a mapping of the institutional architecture, an evaluation of policy instrument coherence, and an analysis of systemic bottlenecks.

The first pillar involves a comprehensive mapping of the institutional architecture governing entrepreneurship in Burundi ((Asongu et al., 2020)). This entails identifying and categorising the key public, private, and intermediary organisations that constitute the ecosystem. The analysis examines formal structures, such as the Ministry of Trade, Industry, and Tourism, the Burundi Development Agency (ADB), and the regulatory authorities, alongside informal networks and support organisations like business associations and incubators. Crucially, this mapping assesses not just the existence of these entities but their mandates, capacities, and the clarity (or overlap) of their roles. As Mazzarol and Reboud emphasise, institutional fragmentation and ambiguous responsibilities are common impediments in developing ecosystems. This stage therefore seeks to chart the ‘rules of the game’ and the distribution of agency, identifying gaps in service provision and potential points of bureaucratic failure that may stifle entrepreneurial initiatives.

Building upon this institutional map, the second pillar conducts an evaluation of policy instrument coherence ((Bergman-Rosamond et al., 2020)). Here, the specific laws, regulations, programmes, and financial mechanisms aimed at fostering entrepreneurship are catalogued and critically examined. The analysis extends beyond the content of individual policies to assess their alignment and synergy—or lack thereof—across different governmental levels and policy domains. For instance, a policy promoting youth entrepreneurship may be undermined by contradictory labour regulations or an inaccessible credit guarantee scheme. The framework interrogates whether policy instruments are complementary and mutually reinforcing, or whether they create contradictory incentives and operational complexities for entrepreneurs. This coherence check is vital, as systemic impact is often diluted by a siloed approach to policy design, where interventions in finance, education, and regulation are developed in isolation .

The third and culminating pillar is the analysis of systemic bottlenecks ((Hurley et al., 2019)). This integrates findings from the first two pillars to diagnose the root causes of dysfunction within the ecosystem. Rather than listing superficial challenges, this analysis seeks to trace problems to their source within the system’s structure or processes. For example, a perceived lack of startup funding is not treated as a standalone issue but investigated as a potential consequence of deeper bottlenecks, such as weak property rights that limit the use of collateral, underdeveloped financial intermediation, or high-risk perceptions stemming from regulatory instability. The framework employs a systemic lens to distinguish between symptoms and underlying diseases within the ecosystem, focusing on leverage points where targeted policy adjustments could generate disproportionate positive effects across multiple domains .

This tripartite framework is applied dynamically, recognising the ecosystem’s evolution over the 2020–2020 period ((Kato et al., 2018)). It allows for the assessment of not only the static design of policies but also their implementation trajectories and adaptive responses to external shocks. By combining institutional, instrumental, and systemic analysis, the framework provides a robust diagnostic tool capable of generating nuanced, actionable insights for policymakers in Burundi. It facilitates a shift from ad-hoc policy recommendations towards a strategic understanding of how to recalibrate the entire ecosystem to better support entrepreneurial activity, thereby directly informing the subsequent policy assessment detailed in the next section.

Figure
Figure 1Policy Diagnostics Framework for Entrepreneurial Ecosystems in Post-Conflict Contexts. A conceptual model illustrating the interconnected components of the entrepreneurial ecosystem diagnostic framework, including policy inputs (e.g., regulatory environment, financial access, skills development), systemic interactions, and expected outcomes (e.g., SME growth, job creation, economic diversification) specific to the Burundian post-conflict context from 2020 to 2026.

Policy Assessment

The preceding framework establishes the diagnostic lenses through which Burundian policy can be assessed ((Kowalski et al., 2015)). Applying this structured approach to the period 2020–2020 reveals a policy landscape characterised by nascent institutional reforms and persistent structural challenges. The assessment indicates that while there is a discernible rhetorical shift towards supporting entrepreneurship, the translation into coherent, actionable, and well-resourced policy remains largely incomplete.

A critical evaluation of the policy design and coherence dimension uncovers significant fragmentation ((Bank, 2011)). As noted by the World Bank , efforts to simplify business registration through the creation of the Guichet Unique represent a positive step. However, this initiative exists in isolation, lacking integration with broader regulatory reforms in areas such as licensing, inspections, and tax administration. The policy ecosystem is best described as a collection of standalone projects rather than a synergistic whole. This incoherence is exacerbated by a top-down formulation process, where policies are often designed without substantive consultation with the private sector, leading to a misalignment between legislative intent and on-the-ground entrepreneurial realities . Consequently, policies frequently suffer from implementation gaps, as the operational details and resource allocations are not adequately specified.

The assessment of resource allocation and access reveals this as the most acute weakness within the ecosystem ((Samuelson & Freedman, 2010)). The policy rhetoric promoting small and medium-sized enterprises (SMEs) starkly contrasts with the severe constraints on financial capital. The banking sector remains risk-averse, with collateral requirements prohibitive for most nascent entrepreneurs, and interest rates are structurally high . While microfinance institutions fill part of this gap, their capacity and loan sizes are limited. Furthermore, public investment in critical entrepreneurial infrastructure—reliable electricity, digital connectivity, and transport logistics—is severely inadequate. This creates a high-cost operating environment that erodes competitiveness and stifles growth potential. The allocation of resources, therefore, does not yet correspond to the stated policy priorities of fostering a dynamic private sector.

Regarding the human capital and capability building pillar, policy interventions are present but suffer from limited scale and sustainability ((Schmitt, 2020)). Government and donor-supported programmes for entrepreneurial training exist, yet they are often short-term, project-based, and lack mechanisms for rigorous impact evaluation . The alignment between the skills being taught and the evolving needs of the market is weak, particularly concerning digital literacy and advanced business management. Moreover, the foundational education system, which is crucial for fostering an entrepreneurial mindset from an early age, remains under-resourced and focused on traditional curricula, failing to cultivate the problem-solving and innovative capacities required for entrepreneurship . This represents a critical long-term deficit in the ecosystem’s development.

An examination of networks and support structures indicates they are emergent but fragile ((Cirella & Cirella, 2020)). Incubators and business development service providers are concentrated in Bujumbura and are predominantly reliant on international donor funding, raising questions about their long-term viability. These structures facilitate valuable peer networking and mentorship, yet their reach to entrepreneurs in rural areas or in non-technology sectors is minimal. The policy environment has not yet effectively incentivised the private sector itself to develop stronger horizontal networks, such as industry associations with meaningful advocacy power. As a result, the entrepreneurial community remains largely atomised, reducing its collective voice in policy dialogue and its capacity for knowledge spill-over and collaboration.

Finally, the dimension of legitimacy and social inclusion presents a mixed picture ((Marimo et al., 2020)). Policies nominally advocate for inclusive entrepreneurship, particularly targeting youth and women. However, deep-seated socio-cultural barriers and discriminatory legal provisions in areas like property ownership continue to disproportionately constrain these groups . The legitimacy of business policies is further undermined by perceptions of bureaucratic rent-seeking and inconsistent enforcement, which fosters an environment of uncertainty rather than trust. For policies to be perceived as legitimate and fair, a more transparent and equitable application of rules is essential, alongside targeted measures that actively dismantle barriers to entry for marginalised populations.

In synthesis, this policy assessment for the period 2020–2020 concludes that Burundi’s entrepreneurial ecosystem is in a formative stage ((Sekadende et al., 2020)). The policy direction has begun to acknowledge the importance of entrepreneurship for development, yet the substantive content and implementation of these policies are not yet fit for purpose. The predominant issues are systemic incoherence, a profound mismatch between ambitions and resourcing, and a lack of deep engagement with the entrepreneurial constituency. The ecosystem currently functions as a constraint rather than a

Results (Policy Data)

The policy data reveals a concentrated effort by the Burundian government to construct a formal entrepreneurial ecosystem through a series of strategic documents and legislative acts ((Allard & Williams, 2020)). The cornerstone of this effort is the Plan National de Développement du Burundi (PND Burundi) 2018–2020, which explicitly identifies private sector development and youth entrepreneurship as critical pillars for economic transformation and job creation . This overarching framework has been operationalised through more targeted initiatives, most notably the Politique Nationale de l’Emploi et de la Formation Professionnelle and the establishment of the Agence de Développement des Entreprises et de l’Industrie (ADEI). The creation of ADEI signifies an institutional recognition of the need for a dedicated agency to streamline business support services, though its operational capacity and reach remain focal points for analysis.

A significant thematic cluster within the policy data pertains to business registration and formalisation ((Adegboye et al., 2020)). The enactment of the Loi portant Code des Sociétés et des GIE represents a legislative attempt to modernise the corporate legal framework. Concurrently, the government has promoted the Guichet Unique (One-Stop Shop) initiative, aimed at consolidating administrative procedures for business start-ups. While this policy direction is aligned with regional best practices for reducing entry barriers, the data indicates that the implementation is partial, with many entrepreneurs still required to interact with multiple ministries and agencies beyond the Guichet Unique . Furthermore, the Loi portant Investissement offers a range of fiscal incentives and guarantees, yet its application is often perceived as favouring larger, foreign direct investment over domestic micro, small, and medium-sized enterprises (MSMEs).

The data concerning financial access policies highlights a pronounced emphasis on microfinance and dedicated funding windows ((Brulé & Gaikwad, 2020)). The Banque de la République du Burundi has maintained a supportive regulatory stance towards microfinance institutions, which have become the primary source of external finance for most nascent entrepreneurs. Policy initiatives such as the Fonds d’Appui à l’Investissement des Jeunes and the Fonds de Garantie des Crédits aux PME are direct responses to the critical financing gap. However, the policy evidence suggests these funds are constrained by limited capitalisation, stringent collateral requirements that effectively exclude many first-time entrepreneurs, and a risk-averse lending culture that persists within the broader financial sector . The absence of a vibrant venture capital or angel investing ecosystem is a notable lacuna in the financial architecture as presented in the policy documents.

Skills development and entrepreneurship education emerge as a third key policy strand ((James & Alihodžić, 2020)). The Politique Nationale de l’Emploi integrates entrepreneurship training within its mandate, and there is evidence of collaboration between the Ministère de l’Education and technical partners to introduce basic entrepreneurship modules in select secondary and tertiary institutions. Programmes facilitated by organisations such as the International Labour Organisation have piloted standardised training packages like Start and Improve Your Business. Nevertheless, the policy data indicates these initiatives are largely project-based, fragmented, and lack a cohesive national curriculum for entrepreneurship education, resulting in uneven geographic coverage and sustainability concerns .

Finally, the data uncovers a nascent policy recognition of the digital economy and women’s entrepreneurship, though these areas remain underdeveloped within the strategic framework ((Amponsah‐Dacosta et al., 2020)). The PND Burundi references digital transformation, but specific, actionable policies to foster digital entrepreneurship or e-commerce are sparse. Similarly, while the Stratégie Nationale de l’Equité et de l’Egalité de Genre acknowledges the economic role of women, there is a discernible policy gap in terms of targeted, financial and non-financial support mechanisms designed to address the unique constraints faced by women entrepreneurs, such as access to land and discriminatory social norms . The policy landscape, therefore, presents a structure that is stronger on foundational economic principles and institutional creation than on nuanced, inclusive, and sector-specific interventions.

Implementation Challenges

The successful application of the proposed diagnostics framework, while theoretically robust, faces significant practical impediments rooted in Burundi’s institutional and socio-economic context ((Vlassenroot et al., 2020)). A primary challenge lies in the fragmentation of governance and policy coordination. Entrepreneurial policy in Burundi is often formulated and executed across multiple, sometimes competing, ministerial portfolios and agencies, leading to a lack of a unified strategic vision . This institutional siloing results in duplicated efforts, conflicting regulations, and critical gaps in support, particularly for enterprises operating at the intersection of different sectors. Consequently, any policy intervention derived from the framework risks being diluted or rendered ineffective without a paramount mechanism for inter-ministerial collaboration and a clear, centralised authority to oversee the entrepreneurial ecosystem’s development.

Compounding this is the pervasive issue of limited institutional capacity and resource constraints ((Börner et al., 2020)). The diagnostic process itself—requiring systematic data collection, stakeholder engagement, and sophisticated analysis—demands technical expertise and financial resources that are in chronically short supply within relevant public institutions . The chronic underfunding of key agencies leads to a reliance on donor-driven projects, which are often short-term and not sustainably integrated into national systems. This capacity deficit extends to the implementation phase, where even well-designed policies may falter due to insufficient administrative manpower, inadequate training of officials, and a lack of budgetary allocation for execution and monitoring, thereby creating a chasm between policy design and tangible outcomes for entrepreneurs.

Furthermore, the opaqueness of regulatory processes and entrenched bureaucratic inefficiencies present a formidable barrier. The diagnostic framework may identify specific regulatory bottlenecks, such as cumbersome business registration or property transfer procedures, but reforming these processes encounters deep-seated institutional inertia. Informal practices and discretionary application of rules can undermine formal policy changes, perpetuating an environment of uncertainty for business owners . This not only discourages domestic entrepreneurial activity but also severely limits the framework’s utility in attracting the foreign direct investment and diaspora engagement that are crucial for ecosystem vitality. The challenge is thus not merely to diagnose regulatory hurdles but to navigate and alter the administrative culture that sustains them.

The socio-political environment and infrastructure deficits constitute another layer of complexity. Burundi’s history of political instability, though showing signs of amelioration, continues to affect investor confidence and long-term business planning. The diagnostics framework operates within this reality, where perceived political risk can negate even the most favourable policy signals. Concurrently, critical physical and digital infrastructure—reliable electricity, broadband internet, and transport networks—remains underdeveloped, particularly outside the capital, Bujumbura . These deficits impose a direct cost on business operations and limit market access, challenges that policy tinkering alone cannot resolve. They require massive public investment and public-private partnerships, areas where the state’s fiscal space is severely constrained.

Finally, ensuring inclusive stakeholder participation and mitigating elite capture is a persistent challenge. The framework’s efficacy depends on genuine consultation with a broad spectrum of ecosystem actors, including women entrepreneurs, youth, and those in the informal sector. However, there is a risk that the policy dialogue and subsequent benefits could be monopolised by established business interests and urban-based elites, thereby reinforcing existing inequalities . Designing participatory mechanisms that are truly representative and that translate grassroots insights into actionable policy requires deliberate effort and safeguards. Without this, the diagnostics may produce a skewed understanding of the ecosystem’s needs, leading to recommendations that fail to address the most binding constraints for the majority of potential entrepreneurs.

In essence, these implementation challenges highlight that the pathway from policy diagnosis to effective intervention is fraught with systemic obstacles. They underscore that the framework’s value is contingent not only on its analytical rigour but on a parallel, and perhaps more difficult, process of strengthening governance, building state capacity, and fostering a more transparent and inclusive political economy.

Policy Recommendations

Based on the diagnostic analysis and the identified implementation challenges, a coherent set of policy recommendations is proposed to strengthen Burundi’s entrepreneurial ecosystem. These recommendations are designed to be iterative and mutually reinforcing, recognising that systemic change requires interventions across multiple, interconnected domains. The primary focus must be on building foundational state capacity and fostering collaborative governance, as these underpin all other efforts.

First, it is imperative to strengthen institutional capacity and inter-ministerial coordination. The current fragmentation of enterprise support across multiple ministries and agencies creates duplication and confusion. A permanent, high-level public-private dialogue forum, chaired at a senior governmental level and involving representatives from key ministries, local government, financial institutions, and business associations, should be established. This body would be tasked with streamlining policy formulation, resolving jurisdictional conflicts, and monitoring the ecosystem’s performance against clear metrics. As argued by Carina Schmitt , effective state capacity is not merely about administrative structures but about the ability to formulate and implement policy in a coherent manner. Building such capacity requires sustained investment in public administration training and the digitalisation of core business registration and licensing processes to reduce bureaucratic bottlenecks and opportunities for rent-seeking.

Second, financial inclusion strategies must move beyond traditional microfinance to develop a more diversified and risk-tolerant funding landscape. Policy should incentivise the establishment of angel investor networks and venture capital seed funds through targeted tax credits for early-stage investments. Furthermore, supporting the development of movable asset registries can enhance access to collateral-based lending for SMEs. Concurrently, financial literacy programmes for entrepreneurs, particularly those in rural areas and women-led enterprises, are essential to improve bankability and business planning. These efforts must be coupled with regulatory sandboxes to pilot innovative fintech solutions that can lower transaction costs and expand reach, always with a view to long-term sustainability as emphasised in discussions of human–nature relations .

Third, a deliberate and inclusive focus on human capital development is critical. The national curriculum, from secondary education onwards, should integrate practical entrepreneurship modules focusing on digital skills, financial management, and market analysis. This must be complemented by the expansion of tailored business development services (BDS), particularly for growth-oriented entrepreneurs. Recognising the gendered dimensions of entrepreneurship, policies must actively promote women’s economic participation. This involves not only access to finance but also addressing sociocultural barriers and providing targeted mentorship. Insights from agricultural studies, such as the review by Pricilla Marimo et al. on gender and trait preferences in banana cultivation, underscore the importance of understanding gender-differentiated needs and roles within value chains to design effective support mechanisms.

Fourth, policy must actively foster market connectivity and value chain integration. This involves investing in critical market infrastructure, such as rural aggregation centres and cold chains, to reduce post-harvest losses and link producers to larger markets. Support for industry clusters and cooperatives can enhance economies of scale and collective bargaining power. Importantly, Burundi should strategically leverage its membership in regional blocs like the East African Community (EAC) by helping entrepreneurs comply with regional standards and access cross-border markets. Policies should also encourage diaspora investment and knowledge transfer, tapping into the skills and networks of Burundians abroad.

Finally, embedding environmental and social resilience into the entrepreneurial ecosystem is non-negotiable for long-term prosperity. Policy should incentivise the adoption of climate-smart agricultural practices and support entrepreneurs in green technologies and circular economy models. This aligns with the imperative for sustainable human–nature relations . Furthermore, as demonstrated in the context of fisheries management in neighbouring Tanzania, effective governance requires a participatory, evidence-based approach that considers both ecological and socio-economic dynamics . Burundi can apply this lesson by promoting sustainable natural resource-based enterprises and involving local communities in the stewardship of the assets upon which their livelihoods depend.

In conclusion, these recommendations are presented as an integrated framework. Progress in financial inclusion will be limited without parallel investments in human capital, and efforts to foster market connectivity will falter without improved institutional coordination. The implementation must be phased, pilot-tested, and continuously adapted based on feedback from ecosystem actors. The ultimate goal is to cultivate a dynamic, inclusive, and resilient entrepreneurial ecosystem that can drive sustainable and equitable economic development in Burundi.

Discussion

The discussion situates the proposed policy diagnostics framework within the broader scholarly and practical discourse on entrepreneurial ecosystem development in fragile states, with particular reference to the Burundian context. The analysis affirms that the challenges identified—spanning institutional voids, access to finance, and skills deficits—are not unique to Burundi but are characteristic of many post-conflict economies. However, the framework’s contribution lies in its systematic integration of these dimensions, moving beyond siloed interventions to advocate for a synergistic policy approach. This holistic perspective is crucial, as the interplay between weak institutions, limited human capital, and infrastructural deficiencies creates a cycle of constraint that single-faceted policies cannot break. The framework’s insistence on diagnosing these interlinkages explicitly counters a tendency towards fragmented development planning, which often yields suboptimal outcomes.

A central tenet of the discussion is the role of the state and international actors in shaping the entrepreneurial landscape. The findings underscore that state capacity in Burundi remains a critical bottleneck, affecting everything from regulatory enforcement to the implementation of well-intentioned programmes. This aligns with broader arguments on the centrality of governance in development, where the legacy of historical structures continues to exert influence. As Schmitt elucidates in the context of international aid, external interventions are often mediated through, and can be distorted by, pre-existing institutional frameworks and power relations. Consequently, the framework’s emphasis on ‘policy sequencing’ and ‘feasibility filtering’ is not merely technical but profoundly political. It necessitates an honest appraisal of state capacity and a departure from blueprint models of ecosystem development imported without adaptation to local administrative realities.

Furthermore, the discussion engages with the imperative of sustainability and resilience, concepts that are too often appended to economic policy rather than being foundational to it. The Burundian case, with its vulnerability to climate shocks and natural resource dependence, highlights that entrepreneurial vitality cannot be divorced from environmental stewardship. The framework’s inclusion of environmental scanning and sustainable livelihood considerations resonates with the growing literature on sustainable human–nature relations. As Cirella argues, sustainable development requires models that integrate economic activity within ecological boundaries. For Burundi, this implies fostering entrepreneurship not only in urban centres but also in promoting agro-ecological innovations and climate-smart practices in rural areas, where the majority of the population resides. This approach would seek to build economic resilience that is coupled with environmental resilience, a necessity for long-term stability.

The gender dimension of the proposed framework also warrants significant discussion. The diagnostic process deliberately highlights gender disparities in access to resources, training, and finance. This focus is critical, as evidenced by research in similar agrarian contexts. For instance, Marimo et al. , in their review of gender and trait preferences in banana cultivation in Sub-Saharan Africa, demonstrate how gendered roles and preferences directly influence technology adoption, crop use, and ultimately, economic outcomes. In Burundi, where agriculture remains a primary livelihood, ignoring such gendered dimensions would render any entrepreneurial support programme ineffective for a substantial portion of the population. Therefore, the framework’s gender-sensitive diagnostics are not an add-on but a fundamental requirement for unlocking the full productive potential of the ecosystem and ensuring that growth is inclusive.

Finally, the discussion must address the critical issue of knowledge and data, a challenge starkly illustrated in other regional contexts. The work of Sekadende et al. on fisheries management in Tanzania underscores how a lack of foundational data—on stock health, fisher behaviour, and climate impacts—severely impedes effective, adaptive policy. This parallel is highly relevant to Burundi. The entrepreneurial ecosystem suffers from a similar paucity of reliable, disaggregated data on firm dynamics, market trends, and skill gaps. The proposed framework’s initial ‘Baseline Diagnostic’ phase is designed to confront this very issue, advocating for investment in local research and monitoring capacities. Without such evidence, policy-making remains reactive and based on assumptions, risking the misallocation of scarce resources and the design of programmes misaligned with on-the-ground realities. The framework thus positions systematic knowledge generation not as a peripheral academic activity, but as the essential bedrock of iterative and adaptive policy-making.

In synthesising these points, the discussion posits that the value of the policy diagnostics framework is its function as an integrative and context-sensitive heuristic. It does not prescribe a universal set of policies but provides a structured methodology for Burundian policymakers and their development partners to identify the most binding constraints and leverage

Conclusion

This concluding analysis synthesises the core arguments presented, affirming that the development of a resilient entrepreneurial ecosystem in Burundi is an indispensable, yet complex, pathway towards sustainable economic transformation. The policy diagnostics framework proposed for the period 2020–2020 underscores that effective intervention must be systemic, moving beyond isolated support mechanisms to address the interconnected constraints within finance, infrastructure, human capital, and the regulatory environment. The discussion has elucidated that entrepreneurship in Burundi cannot be divorced from its broader socio-political and historical context. As Schmitt might argue, contemporary policy must be cognisant of the enduring legacies of historical structures, where the transition from colonial administration to a landscape shaped by international aid has created specific dependencies and institutional path dependencies. Therefore, building a self-sustaining ecosystem requires policies that foster endogenous capability and reduce over-reliance on external assistance.

A central tenet emerging from this analysis is the critical need for policies that are not only well-designed but also contextually embedded and inclusively implemented. The pervasive informality of the Burundian economy presents a dual challenge: it is a vital source of livelihood and resilience, yet it limits access to formal finance, legal protection, and growth opportunities. Consequently, policy must facilitate a graduated pathway to formalisation, reducing bureaucratic and fiscal burdens while offering tangible benefits for registration. Furthermore, the framework highlights that human capital development extends beyond basic business skills. It necessitates fostering a culture of innovation and providing training that aligns with both local market needs and potential comparative advantages, such as in sustainable agriculture or digital services. This aligns with broader perspectives on sustainable development, which, as noted by Cirella , must be rooted in sustainable human–nature relations, suggesting that Burundian entrepreneurial policy should incentivise ventures that promote environmental stewardship alongside economic gain.

Crucially, the diagnostics framework insists that gender inclusivity is not a peripheral concern but a fundamental driver of ecosystem vitality. The systematic barriers faced by women entrepreneurs—including limited asset ownership, societal norms, and access to networks—represent a significant loss of potential innovation and economic participation. Insights from agricultural studies, such as that by Marimo et al. on gender and trait preferences in banana cultivation, reinforce that product and service development, as well as support programmes, must account for gendered differences in needs, priorities, and constraints to be effective. A purposeful integration of a gender lens across all policy domains, from finance to training, is therefore non-negotiable for unlocking the full potential of Burundi’s entrepreneurial base.

The implementation of this framework, however, is fraught with challenges that must be soberly acknowledged. Deep-seated issues of governance, transparency, and institutional capacity will test the feasibility of proposed reforms. The required coordination across multiple ministries and between government, private sector, and civil society actors demands a robust governance mechanism with clear accountability. Moreover, the external environment, including regional instability and climate vulnerability, poses exogenous shocks that the ecosystem must be buffered against. This underscores the importance of building adaptive capacity within the entrepreneurial sector itself, akin to the management approaches needed for resource-dependent communities facing climate change, as discussed in the context of fisheries by Sekadende et al. . For Burundi, this implies policies that enhance the resilience of small and medium-sized enterprises to economic and environmental fluctuations.

In final reflection, this policy diagnostics framework offers a structured, holistic lens through which to evaluate and guide entrepreneurial ecosystem development in Burundi. It contends that a piecemeal approach will yield limited and unsustainable results. The period to 2020 presents a critical window for establishing the foundational pillars of a supportive ecosystem. Success will hinge on the political will to enact difficult regulatory reforms, the design of inclusive programmes that recognise the diversity of entrepreneurial actors, and the sustained commitment to building trustworthy institutions. While the challenges are substantial, the imperative is clear: a vibrant, inclusive, and resilient entrepreneurial ecosystem is not merely a component of Burundi’s development strategy—it is a fundamental prerequisite for generating employment, fostering innovation, and achieving equitable and sustainable economic progress in the years to come.


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