This study reviews the literature on shadow and gig economy models to highlight their effects on entrepreneurship and business development in emerging markets. In particular, it examines how these models create opportunities for income generation and employment while operating outside formal regulatory frameworks and also assesses the regulatory and socio-economic factors that influence their success.
Using a systematic literature review (SLR) following the PRISMA protocol, 33 relevant and impactful articles published between 2000 and 2024 were analysed. The study synthesises findings on shadow and gig economy practices to answer key research questions about their role in fostering entrepreneurship and innovation.
The results reveal three key findings. First, the models of the gig and shadow economies encourage economic participation and entrepreneurial innovation, especially among underrepresented groups, but they also present difficulties like job insecurity and unofficial working conditions. The success of these models is also greatly influenced by socio-economic and regulatory factors, with adaptive frameworks enhancing worker protection and innovation. Third, measures like collective efforts, investments in digital infrastructure and flexible regulations are essential for both economic models to grow sustainably.
Policymakers and stakeholders should create clear regulatory frameworks that protect workers’ rights while promoting business innovation. Investments in technology, digital infrastructure and inclusive skills development can improve participation and productivity. Collaborative initiatives are critical for mitigating risks and ensuring ethical practices in the shadow and gig economies.
Unlike previous conceptual and theoretical studies, this study offers new perspectives through a clear conceptual framework that explains the dual role in entrepreneurship and business development. It also provides useful information for scholars and policymakers in emerging markets.
