Assessing the entrepreneurial ecosystem of Sweden: a comparative study with Finland and Norway using Global Entrepreneurship Index

Abstract

PurposeThis paper aims to investigate and examines Sweden's overall entrepreneurship performance (ecosystem) by applying the Global Entrepreneurship Index (GEI) while benchmarking the entrepreneurial ecosystem of Sweden with that of Finland and Norway.Design/methodology/approachIn terms of subindices, pillars and component factors, this research analyzes the entrepreneurial ecosystem of Sweden using the GEI supplemented by the Penalty for Bottleneck (PFB) approach utile for identification of bottlenecks. In addition, the Swedish ecosystem is benchmarked against its Finnish and Norwegian counterparts drawing on data collected between 2015 and 2018.FindingsUsing data drawn from the GEI, Sweden manifests a strong entrepreneurial ecosystem with a GEI score of 72.7 out of 100. However, fledgling start-up skills, insufficient human capital, and slow and erratic growth undercut otherwise solid entrepreneurial aspirations drawing on well-developed institutional variables. On a macrolevel, Sweden evinces greater capacity for entrepreneurship and innovation than either Norway or Finland but, on a microlevel, several discontinuities manifest in terms of subindices, pillars and component factors to the advantage of Norway and/or Finland and, conversely, to the detriment of Sweden.Practical implicationsPolicymakers should fund a mix of programs and institute regulatory reforms designed to promote entrepreneurial systemic development in Sweden by remediating entrepreneurial gaps depressing GEI scores. Crucial policy interventions are required to accrete start-up skills and human capital and engender high growth. Incremental funding of 47% over current levels budgeted to buoy entrepreneurial activity are mandated for Sweden to approach its GEI potential.Originality/valueInsights are derived from extracting data drawn from a new methodology for gauging entrepreneurial activity incorporating individual and institutional variables into a single model that combines PFB and GEI analysis with a view to identifying, through the PFB approach and weak aspects of Sweden's entrepreneurial performance.