Innovation in Emerging Contexts: What Harvard HBS Teaches About Disruptive Ideas

Summary:

Based on Harvard's "Entrepreneurship in Emerging Economies" and "Disruptive Strategy" courses, this article explores how to find opportunities in underserved markets and build high-impact models amid uncertainty.

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In recent years, business schools like Harvard have shifted their curriculum to address a sobering reality: traditional markets are saturated, inequality is rising, and many of the world’s most pressing problems remain unresolved. The best ideas, it turns out, aren’t always hidden in Silicon Valley—they’re often buried in the blind spots of global systems.

This article draws on key lessons from two of Harvard Business School's online programs—Entrepreneurship in Emerging Economies and Disruptive Strategy—to explain how founders can launch high-impact ventures by solving real-world problems that others overlook.

The Core Idea: Solve the Right Problem

In the HBS course “Entrepreneurship in Emerging Economies”, Professor Tarun Khanna urges founders to ask a different first question—not “what product can I sell,” but “what problem should I solve?” In markets where public institutions are weak or infrastructure is lacking, these problems are often obvious to residents but invisible to global investors.

In this context, entrepreneurs become problem-solvers who create business models that compensate for broken systems. Examples include M-Pesa in Kenya, which pioneered mobile money platforms, and 1MG in India, which offers affordable diagnostics and pharmacy services in low-access communities.

Institutional Voids by Region" using World Bank infrastructure scores and social entrepreneurship activity data.

Region	Infrastructure Gap Score*	Social Entrepreneurship Activity
Sub-Saharan Africa	8.1/10	High
South Asia	7.6/10	High
Latin America	6.3/10	Moderate
Eastern Europe	4.7/10	Low

A Disruptive Playbook That Doesn’t Need Tech

In the Disruptive Strategy course, Professor Clayton Christensen (of The Innovator’s Dilemma fame) offers a clear definition of disruption: it’s not about cutting-edge tech—it’s about accessibility and affordability. Christensen’s research shows that real disruption comes from products and services that are “good enough” and significantly cheaper than incumbents, often serving people the market has ignored.

One enduring example is Grameen Bank, which revolutionized microfinance by offering small loans to rural women in Bangladesh. Another is Zipline, which delivers medical supplies via drone in Rwanda, leapfrogging unreliable infrastructure.

“Disruption happens when entrepreneurs focus not on the rich, but on the overlooked,” Christensen wrote in his widely-cited Harvard Business Review article. “It’s not about the margins. It’s about the people in the margins.”

According to the Global Entrepreneurship Monitor 2024 Report, over 70% of early-stage entrepreneurship in low-income regions is necessity-driven, not opportunity-driven—underscoring the demand for affordable solutions.

The Harvard Model for Building in Chaos

So what do Harvard’s online programs actually teach aspiring entrepreneurs to do?

1. Identify institutional voids — Find broken systems and unmet social needs.

2. Avoid over-engineering — Lean toward scalable, low-cost models.

3. Design for inclusion — Co-create with the communities served.

4. Use partnerships — Collaborate with NGOs, local governments, or cooperatives.

5. Think long-term — Impact takes time in complex systems.

   
   

Bonus Tool: We recommend using this Disruption Readiness Scorecard template to assess the viability of launching in an underserved region.

Case Study Spotlight: Nubank

Brazilian fintech Nubank exemplifies these principles. It began by offering no-fee credit cards to unbanked Brazilians through a mobile-first platform. Today, it serves over 90 million users across Latin America by addressing systemic friction in traditional banking models.

Conclusion: Start Small, Think Big

Emerging markets are not side markets. They are where humanity’s most urgent needs reside—and where the next generation of iconic companies may be born.

“Don’t just export models that worked in New York or San Francisco,” warns Professor Tarun Khanna. “Instead, listen to what people need and create a system that works with what’s already there.”

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