There is need for a home-grown entrepreneurial business model that will enhance business success; thus, this study investigates the effect of kobana entrepreneurial business model practice on economic development of Igbo communities in South – East, Nigeria. The study employs survey design method. The scope of the study covers all the entrepreneurs in Onitsha, Nnewi, Awka, Enugu, Owerri, Aba, Umuahia and Abakaliki. Primary source of data was gathered through the instrument of questionnaire and focus group discussion. The study adopts purposive sampling technique. The independent variables are cultural values and norms, social networks and community bonds and associative entrepreneurship practice and the dependent variable is economic development. Both qualitative and quantitative analysis technique was used to analyze the data. The findings revealed that associative entrepreneurship has positively impacted on the sustainability, growth and performance of entrepreneurs from the study area. It was also found that the use of Kobana model by entrepreneurs from the study area enable them to overcome numerous challenges. Hence, we recommend that government and all the stake holders should encourage the practice of associative entrepreneurship by embarking on mass sensitization exercise and also through the enactment of various laws that will strengthen the practice in Nigeria.