Abstract
Research on African business ecosystems often overlooks post-conflict, informal economies, particularly in the Horn of Africa. There is a critical gap in understanding how enterprises in such contexts develop governance structures and build resilience without formal institutional support. This study aims to ethnographically analyse the endogenous governance mechanisms and resilience strategies employed by micro- and small-scale entrepreneurs operating within Somalia's unique entrepreneurial ecosystem. A longitudinal, immersive ethnographic study was conducted, involving participant observation, in-depth interviews, and document analysis with a purposively selected cohort of 42 entrepreneurs across multiple urban centres. A dominant theme was the reliance on clan-based 'xisbi' networks for dispute resolution and contract enforcement, which substituted for absent formal legal structures. Approximately 70% of observed business disputes were resolved through these adaptive, non-state mechanisms, fostering a distinct form of commercial trust. Somalia's entrepreneurial ecosystem demonstrates a robust, internally generated governance architecture that challenges conventional models of institutional void, enabling significant business continuity and adaptation. Development policy and microfinance interventions should seek to engage with and strengthen existing endogenous governance systems rather than attempting to impose external frameworks. Financial products should be designed to complement the fluid capital flows within clan networks. informal economy, post-conflict, governance, resilience, clan networks, entrepreneurship, Horn of Africa This paper provides a novel, empirically rich analysis of the 'xisbi' system as a functional business governance mechanism, offering a new model for understanding institutional hybridity in stateless commercial environments.