A Conceptual Framework for Entrepreneurial Ecosystems Policy Formulation

Abstract

The entrepreneurial ecosystem concept has attracted the attention of many governments and regional authorities, encouraged by the ubiquitous belief in the value of entrepreneurship as a source of economic growth. However, the study of entrepreneurial ecosystems is recent, undertheorized and fragmented. Specifically, it has a limited capacity to explain the effect of policies in the development of entrepreneurial ecosystems, while two competing views of how to develop an entrepreneurial ecosystem coexist, the ‘curator’ versus ‘builder’ government. Without solid and coherent theoretical foundations to guide its formulation, policies risk being ineffective. We hold the development of entrepreneurial ecosystems requires a customized mix of policies adapted to the unique characteristics of each ecosystem; promote the quality of entrepreneurship to ensure allocation of resources to productive use; and address the complexity of entrepreneurial ecosystems with a holistic policy approach. Considering the unfeasibility of generic, ‘one size fits all’ solutions, we follow a different path to advance research and assist policymaking, by providing guidance on key parameters to inform the formulation of entrepreneurship policies for entrepreneurial ecosystems (EPE). Based on our findings we present a conceptual framework and discuss three parameters for policy formulation top-down versus bottom-up implementation, support to systemic versus framework conditions, and holistic versus siloed approaches.