Spread the knowledge

Representational Image of People Using AI Chatbots Created with Meta AI Image Generator. Photo: RMN News Service

UNCTAD Report: AI Reshaping Entrepreneurship in Developing Nations, But Skills Gap Remains

To bridge the current skills gap, UNCTAD’s Empretec business development centres are providing hands-on support through training, mentoring, and bootcamps. these programs help entrepreneurs identify concrete AI use cases and develop the practical capabilities needed to work with new tools.

Pathway AI Desk
New Delhi | January 3, 2026

GENEVA – A new publication from UN Trade and Development (UNCTAD) reveals that artificial intelligence (AI) is fundamentally transforming how entrepreneurs in developing countries start, manage, and scale their businesses. While the technology offers unprecedented opportunities for growth, experts warn that skills shortages, financial barriers, and the need for clear governance must be addressed to ensure these benefits reach all levels of the economy.

The Rise of the AI-Powered Small Business

Micro-, small-, and medium-sized enterprises (MSMEs) are increasingly integrating AI-powered tools into their daily operations. These applications span a wide range of activities, including marketing, customer service, logistics, finance, and product design.

The report highlights that large language models are serving as essential building blocks, allowing smaller firms to adopt AI quickly and at a relatively low cost. However, adoption remains uneven across the globe. Many business owners report a limited understanding of how AI fits into a long-term strategy or how to implement the technology step by step.

Barriers to Implementation

The primary obstacles to widespread AI adoption are a lack of managerial understanding and a shortage of technical talent, particularly for smaller firms with limited resources.

“AI can be a powerful tool for entrepreneurs, but its benefits are not automatic,” stated Arlette Verploegh Chabot, lead of UNCTAD’s entrepreneurship development work. She emphasized that supportive ecosystems and practical skills are essential for entrepreneurs to integrate AI in a meaningful way.

Governance and Infrastructure

Global experts cited in the report argue that regulation should be viewed as a catalyst rather than a hindrance. Amandeep Singh Gill, a top UN official, noted that clear and predictable governance helps build trust and creates a “fair playing field” for innovation.

Similarly, Natasha Crampton, Chief Responsible AI Officer at Microsoft, emphasized that lowering barriers requires a combination of accessible infrastructure, skills development, and trusted governance. To manage risks, Hiroaki Kitano of Sony Group Corporation suggested a phased approach:

Start with off-the-shelf tools.
Collaborate with partners for specialized expertise.
Gradually build in-house capabilities.

Closing the Gap through Policy and Training

To bridge the current skills gap, UNCTAD’s Empretec business development centres are providing hands-on support through training, mentoring, and bootcamps. these programs help entrepreneurs identify concrete AI use cases and develop the practical capabilities needed to work with new tools.

The insights gathered in this report have culminated in recommendations for an Entrepreneurship Policy Framework for AI adoption. This framework aims to provide governments with policy options to create enabling environments where AI can flourish as a practical tool for sustainable development.

Adopting AI in a developing economy is much like introducing a high-speed irrigation system to a farming community. While the technology (the AI) has the potential to vastly increase the harvest (business growth), its success depends on the farmers having the right tools to connect it (infrastructure), the knowledge to operate the valves (skills), and fair water-sharing agreements (governance) to ensure every field can flourish.