Navigating the Entrepreneurial Ecosystem: A Comparative Analysis of Institutional Challenges and Growth Trajectories in Togo (2000–2026)

Entrepreneurial ecosystems in West Africa are characterised by complex institutional frameworks that shape venture development. While regional analyses exist, granular comparative studies focusing on specific national trajectories and their underlying institutional mechanics are scarce, particularly for smaller economies. This study aims to systematically compare the institutional challenges faced by formal and informal sector entrepreneurs and to analyse their divergent growth trajectories. It seeks to identify the specific institutional mechanisms that most significantly constrain or enable business expansion within the national context. A longitudinal, mixed-methods comparative design was employed. Quantitative data from a panel survey of 450 established and nascent entrepreneurs were analysed alongside qualitative data from 60 in-depth interviews and focus groups. Institutional theory provided the analytical framework for cross-sectoral comparison. A key finding was that informal sector ventures experienced growth rates approximately 40% lower than their formal counterparts, primarily due to systemic exclusion from formal credit mechanisms. The most salient institutional challenge across both cohorts was not regulatory burden per se, but inconsistent enforcement and unpredictable administrative discretion. The entrepreneurial ecosystem is bifurcated, with institutional voids selectively filled by informal networks that create path-dependent growth limitations. Sustainable scaling requires addressing the predictability of institutional interactions, not merely the nominal regulatory framework. Policymakers should prioritise the development of a graduated compliance pathway and a dedicated credit guarantee facility targeting semi-formal enterprises. Ecosystem support programmes must integrate behavioural insights to address entrepreneurs' risk perceptions stemming from institutional unpredictability. entrepreneurial ecosystem, institutional voids, comparative analysis, business growth, informal sector, institutional theory This paper provides a novel, longitudinal dataset tracking venture evolution in conjunction with institutional perceptions, offering a mechanism-based explanation for growth divergence between formal and informal sectors.