Abstract

Conflict zone entrepreneurs—local entrepreneurs running small businesses in conflict settings—have paradoxical impacts on stability: holding the ability both to foster peace but also to enhance conflict. Prior scholarly work has been unable to explain this divergence, as existing entrepreneurial indicators do not account for fundamental peacebuilding elements. In response, the article consolidates divergent fields of study, applies paradox theory to analyze underlying tensions in the field, and reframes entrepreneurship through a peacebuilding lens based on intergroup inclusivity and value-creating business practices. Using several cases, this article shows how entrepreneurial activity in conflict zones can foster sustainable peace, limited peace, or conflict, arguing that entrepreneurship based on value-creating and inclusive practices can result in pro-peace outcomes. The article offers policy recommendations for local governments and the humanitarian sector seeking to use entrepreneurship in conflict zones to promote peace.