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The concept of empowerment has gained considerable attention in the field of international development. Institutions such as the World Bank and the United Nations invest considerable funds and efforts trying to facilitate empowerment in developing countries. This is because empowerment is seen as a positive phenomenon that can positively impact on people and their environment. Empowerment provides an implemental mindset that makes people look for the means to action and be ready to move forward toward their goals. Thus, empowerment becomes important when people need to take action and be innovative in overcoming scarcity and fighting against poverty. Research shows the positive effects of empowerment on entrepreneurship-related behavior and outcomes such as proactive behavior, goal achievement, and innovation. Yet, there is a dearth of research addressing the phenomenon of empowerment in entrepreneurship. This dissertation aims to contribute to the understanding of the role of empowerment in entrepreneurship and its effects. Particularly, this dissertation targets the interplay between empowerment and entrepreneurship in the context of developing countries. Chapter 1 provides a general overview of the different topics of this dissertation. Chapter 2, introduces the construct of psychological empowerment at work as the theoretical foundation to advocate for the importance of empowerment in entrepreneurship. The chapter takes initial steps in drawing the rationale and identifying empirical evidence for the relationship between empowerment and entrepreneurial behavior and outcomes. Specifically, the chapter links the components of psychological empowerment to concrete action characteristics in entrepreneurship such as effectuation and experimentation. Chapter 3 establishes a first empirical link between empowerment and entrepreneurship. The chapter provides the construct of entrepreneurial empowerment and develops a multidimensional measure to measure its dimensions. By means of a nomological network, the chapter reveals the relations of entrepreneurial empowerment with relevant constructs and outcomes derived from entrepreneurship and empowerment research such as innovation, self-reliance, and decision-making. Chapter 4 posits entrepreneurship training, particularly personal initiative training and business literacy training, as effective means to facilitate entrepreneurial empowerment and its effect on business performance. The chapter uncovers the mechanisms accounting for the relationship between entrepreneurship training and entrepreneurial empowerment. Chapter 5 provides general theoretical and practical contributions and finishes with a general conclusion. This dissertation contributes to the understanding of empowerment in entrepreneurship and its effects on business performance in the context of developing countries. The studies embedded in this dissertation can serve to further the development of theory and research that advances groundwork of empowerment in entrepreneurship. The construct of entrepreneurial empowerment can stimulate the use of more accurate indicators when conceptualizing and investigating the process and consequences of empowerment in entrepreneurship and international development.