ABSTRACT
The research highlights the dual nature of informal networks in the entrepreneurial ecosystem, including their potential positive role in the reintegration of post-conflict societies. On the one hand, entrepreneurs rely on their informal networks to build their businesses, leveraging social capital to foster trust and enforce unwritten agreements. On the other hand, these very networks can hinder business innovation and growth while reinforcing the grip of networked actors on political power. We examine evidence from the region that identifies networks that successfully address problems caused by politically driven ethnic divisions. We then dissect the individual, group, and societal characteristics of these networks to demonstrate the value of ethnic inclusivity in entrepreneurial contexts, including policy implications for political institutions.
