The Concept of Digital Entrepreneurial Ecosystem for SMEs in North Sulawesi, Indonesia

Abstract

The digital economy comes with a sloping topography, is inclusive, and offers equal opportunities. This characteristic has the concept of competition which becomes the spirit of the industry that is easily lifted by SMEs players and Start-Ups who prioritize collaboration and synergy. Therefore, to face the challenges as well as opportunities that come simultaneously brought about by the presence of the digital economy and the pandemic situation, it is very important for SMEs to understand the environmental conditions and existing ecosystems, where a digital-based entrepreneurial ecosystem is something that is mandatory for the existence of SMEs. A new platform-based ecosystem framework, also known as the Digital Entrepreneurial Ecosystem (DEE) is proposed which integrates two separate but related ecosystem literature, namely the digital ecosystem and the entrepreneurial ecosystem. This new framework places platform-based ecosystems within the broader context of users, agents, infrastructure and institutions, so that two biotic entities (users and agents) drive individual agency, while two abiotic components (digital technology and digital institutions) make up the external environment. The purpose of writing this article is to get an overview of the concept of the Digital Entrepreneurial Ecosystem (DEE) by using a literature study research method. This article will be built and constructed based on empirical research that has been done, mapping articles and related studies to be able to provide an overview of the DEE concept for SMEs in North Sulawesi Province, Indonesia. The management of four sub-indexes of DEE, namely Digital Technology Infrastructure, Digital User Citizenship, Digital Multi-sided Platform, and Digital Technology Entrepreneurship, is the key to improving the SMEs in North Sulawesi, Indonesia.