The business environment in many emerging economies is characterised by structural and governance complexities that impede enterprise growth and investment. A comprehensive diagnostic of these persistent challenges is required to inform effective policy and managerial strategy. This study aims to diagnose the specific structural and governance obstacles facing businesses, to analyse their interrelationships, and to assess their perceived impact on operational decision-making and long-term planning. A sequential explanatory mixed-methods design was employed. First, a quantitative survey of 350 firm managers was conducted to identify and rank perceived challenges. This was followed by 24 in-depth, semi-structured interviews with senior executives and policy experts to explore the mechanisms and contextual nuances behind the quantitative data. Quantitative analysis identified regulatory uncertainty and access to finance as the two most severe constraints, cited by 78% and 72% of respondents respectively. Qualitative data revealed a central theme of 'navigational capital', where firms develop informal networks and adaptive strategies to circumvent formal institutional shortcomings. The findings indicate that structural and governance challenges are deeply interconnected, creating a business environment where success is less about optimising formal procedures and more about skilfully managing systemic unpredictability. Policymakers should prioritise enhancing regulatory predictability and transparency. Firms are advised to institutionalise strategic flexibility and invest in stakeholder relationship management as a core competency. Business environment, institutional voids, mixed methods, governance, regulatory uncertainty, Sub-Saharan Africa This paper provides a novel diagnostic framework that integrates perceived severity of business constraints with the lived experience of navigating them, offering a nuanced, evidence-based analysis for both academic and practitioner audiences.
Mfinanga et al. (Thu,) studied this question.