**Abstract**

Economists anticipate the future of the economy based on objective analysis, but for these forecasts to be taken into consideration by the economic environment, they must be founded on knowledge of the processes that drive rational expectations and opportunity decision-making. Due to these factors, the chapter we propose examines the emergence of these opportunities as a consequence of economic progress occurring primarily in innovation-based economies. Firstly, entrepreneurial opportunities are significantly influenced by innovation, as a result of both the numerous inventions produced by local entrepreneurs in developing economies and the entrepreneurial practices of those in advanced economies, where innovative concepts are generated and then exported to emerging economies to be implemented in particular local environments. Secondly, there are several different circumstances in which entrepreneurs innovate. A significant focus has been given to the SME sector over the last decade since it dominates emerging economies and contributes to development, but not to its maximum potential due to unique innovation challenges; lastly, strong institutional environments and efficient innovation systems are required to generate opportunities since they have a significant impact on entrepreneurs' innovative behavior and assist in explaining why individuals with basically similar characteristics act differently in various contexts.

**Keywords:** entrepreneurship, entrepreneurial ecosystem, innovation, economic growth, globalization, knowledge-based economy, learning organizations

## **1. Introduction**

Sustainable and extensive growth in per capita income is the cornerstone of economic development, which is also preceded by changes in the structural nature of an economy that is centered on products with increased added value and more effective manufacturing processes. Entrepreneurs can assist the economy in growing by creating innovative strategies to redistribute resources, reforming consumption habits that do not generate the greatest benefit, and supporting structural reforms. Additionally, they might do this by accomplishing the activities involved in cost discovery, eliminating any gaps, and finalizing the economy's inputs. The potential role of entrepreneurs as innovators in emerging economies is still underestimated, despite the fact that entrepreneurship operates in a globalized economy. Entrepreneurs are typically innovative, creating new markets and technology for future sustainable development along with procedures that aim to increase knowledge in the entrepreneurial environment, according to Joseph Schumpeter (1883–1950), who made this statement a century ago.

Nevertheless, it is a common misconception that low-income developing nations, in contrast to those with advanced economies, are unlikely to experience economic growth due to their entrepreneurial spirit. A significant proportion of the economic literature has been devoted to the conditions that drive entrepreneurs to innovate as well as the structure and evolution of national innovation systems. However, research in the nexus of entrepreneurship, innovation, and development is still in its inception. In general, this literature has focused on the innovation process and its dynamics in advanced economies. In this regard, analyses based on the indicators that constitute the entrepreneurial ecosystems attempt to provide answers to queries such as:


In order to provide answers to the previous questions, it is necessary to define the concepts "entrepreneurship" and "innovation," as well as give a brief overview of the current collection of data regarding the influence of the determinants of innovation and the relevance of policies and the institutional environment for promoting innovation.
