Entrepreneurship Under Constraint: The Impact of Economic Sanctions on Business Ecosystems in Iran, Russia, and China

Abstract: 

Economic sanctions are a key tool in international relations, designed to enforce compliance with global norms while avoiding military intervention. This study examines the impact of sanctions on entrepreneurial ecosystems and business strategies in Iran, Russia, and China, focusing on resilience, adaptation, and long-term viability. Using a mixed-methods approach, quantitative data from the Global Entrepreneurship Monitor (2010–2022) was analyzed alongside qualitative case studies. Data sources included policy reports, scholarly articles, media accounts, and interviews with entrepreneurs and policymakers. Analytical methods included descriptive statistics, regression modeling, and thematic analysis. Findings reveal significant differences in how sanctions affect entrepreneurs. In Iran, limited access to global markets and technologies forced reliance on local resources, cost-cutting, and alternative financial systems like cryptocurrencies, often hindering innovation and scalability. Russian entrepreneurs navigated disrupted trade networks by forging new partnerships, particularly with China, but persistent issues like corruption and bureaucracy constrained broader activity. In China, domestic regulatory crackdowns recently slowed entrepreneurial growth despite earlier policy-driven success. The study concludes that sanctions and restrictive policies reshape entrepreneurial ecosystems, encouraging short-term adaptation but often undermining long-term competitiveness. Institutional reforms and stable policies are crucial for fostering resilient and sustainable ecosystems. These insights can help policymakers balance economic pressures with support for innovation and business growth.