Inclusive Entrepreneurial Ecosystems

Abstract

Abstract Cities and regions with the strongest entrepreneurial ecosystems are often marked by high levels of inequality. These inequalities have, however, often been overlooked in policy and academic circles. Seeking to remedy this neglect, the aim of this chapter is to engage with research on entrepreneurial ecosystems and inclusive entrepreneurship, and to stimulate fresh thinking about what an inclusive entrepreneurial ecosystem might look like and what policies could be used to get there. In this, inclusion comes in different guises. It can mean encouraging disadvantaged groups into entrepreneurship. Or, it can relate to wider inclusive growth outcomes such as the reduction of inequality and poverty. The level of entrepreneurial activity among different groups, and how their entrepreneurship interacts with inequality and poverty, will depend on factors such as a territory’s culture and formal institutions, and the support networks and finance available. As these factors vary between territories, place-based policy which maintains an intersectional understanding of privilege will be needed to stimulate inclusive entrepreneurial ecosystems. However, the chapter also makes clear how encouraging entrepreneurial activity may produce inequalities and accentuate poverty as many new businesses fail. In this, it is suggested that policymakers should consider the efficiency of their actions. While encouraging entrepreneurship may assist with inclusive growth outcomes, stimulating high-growth firms which employ locally could be far more efficient.