The Role of Early Trade Networks in Shaping Maldivian Entrepreneurship: Historical Foundations to Contemporary Growth.

Abstract

Introduction:

The Maldives, an Indian Ocean archipelago, displays a rich history of entrepreneurship before modern tourism. Historically, its strategic location and essential resources vital for that past era, such as cowry shells, which were used as currency across Asia and Africa, and coir rope, made the Maldives a significant trade route. Ancient accounts highlight an advanced economic system with royal monopolies on exports. This paper argues that Maldivian entrepreneurial resilience stems from centuries of adapting to changing economic and cultural landscapes, from seafaring communities to digital innovation. By examining historical documents, the study aims to fill a knowledge gap in small island economies, providing insights into indigenous entrepreneurship and the unacknowledged role of women.

Objectives:

The primary objective of this research is to examine the influence of early trade networks in shaping the path of Maldivian entrepreneurship, from its historical foundations through to contemporary growth. By using qualitative historical analysis across pre-Islamic, Islamic, colonial, and modern eras, the study aims to reveal how retained trading habits and strategic economic adaptations have continuously influenced the nation's entrepreneurial identity and development.

Methods:

This study is a qualitative historical analysis, using primary accounts and different secondary sources to explore the evolution of Maldivian entrepreneurship. Organized chronologically, the research combines literature review and discussion within its narrative, tracing entrepreneurial development from pre-Islamic times to the modern era. Due to data availability limitations and interpretive challenges, this approach provides detailed insights into how historical trade networks and adaptations have shaped the nation's economic identity.

Results:

This study reveals that Maldivian entrepreneurship is deeply rooted in its ancient trade networks. From early basic survival to a key player in the cowry and coir trade during the Buddhist and Islamic eras, its economic identity was shaped by regional commerce. Islamic conversion introduced strong trust-based institutions, while colonial encounters, though fragile, saw the native customs and local habits. The modern era's tourism boom brought growth but also vulnerabilities, emphasizing the critical need for economic diversification, sustainable development, and leveraging digital advancements for inclusive entrepreneurship.

Conclusions:

This study reveals that Maldivian entrepreneurship is deeply rooted in its ancient trade networks. From early basic survival to a key player in the cowry and coir trade during the Buddhist and Islamic eras, its economic identity was shaped by regional commerce. Islamic conversion introduced strong trust-based institutions, while colonial encounters, though fragile, saw the native customs and local habits. The modern era's tourism boom brought growth but also vulnerabilities, emphasizing the critical need for economic diversification, sustainable development, and leveraging digital advancements for inclusive entrepreneurship