Entrepreneurial Ecosystem Research Articles

Assessment of the impact of government support to technology business incubators in India

Empirical literature does not adequately throw light on the emergence of institutional intermediaries such as Technology Business Incubators (TBIs) in entrepreneurial ecosystems of emerging economies characterized by underdeveloped market infrastructure and limited private sector participation. The present study aims to understand the role and effectiveness of Government support for the promotion of TBIs in India. We conceptualize incubation support as occurring in two stages: first, the government allocates resources to create incubation infrastructure, followed by startups using the infrastructure and support for their own survival and scaling. A quantitative analysis is carried out based on secondary data on government support provided to 54 incubators in six better-developed states of India. We have carried out logistic regression analyses to analyze our key research objectives. Government support for the promotion of TBIs has led to significant infrastructure development, with a preference for university-based incubators (UBIs). The study makes two contributions: first, preferences attached in resource allocation are hindering the scaling of incubation support in the country. Second, different institutional strategies are required to maximize the creation and utilization of entrepreneurship support capacity, depending on the stage of development of the ecosystem.

Startup Survival Forecasting: A Multivariate AI Approach Based on Empirical Knowledge

Predicting the survival of startups is a complex challenge due to the multifaceted nature of entrepreneurial ecosystems and the dynamic interplay of internal and external factors. Despite advances in empirical research, existing models often lack integration with robust conceptual frameworks. This study addresses these gaps by developing a multivariate AI-driven model for predicting startup survival, leveraging Lipschitz extensions, neural networks, and linear regression. Using a dataset of 20 startups, selected across diverse industries and evaluated on attributes such as team dynamics, market conditions, and financial metrics, the model demonstrated high accuracy and clustering capabilities. Key findings highlight the pivotal role of team dynamics and product differentiation in determining survival probabilities. By integrating conceptual insights with empirical data, the study bridges gaps in existing literature and offers a practical decision-making tool for entrepreneurs, investors, and policymakers. These findings underscore the importance of fostering collaborative, innovative ecosystems to enhance entrepreneurial success and societal well-being.

Unveiling the Power of Race and Education in Shaping Entrepreneurial Dreams: An Empirical Study in Florida

This study investigates the main effects and the interaction effects of race and education on entrepreneurial intentions in the pre-startup phase, using logistic regression analysis on a sample of 967 respondents from Florida. Blacks and Other Nonwhites are compared to Whites in the logistic regression analysis. As the largest empirical study of its kind at the state level in the U.S., it addresses a gap in the literature by focusing on a narrowly defined geographic area. The findings reveal significant differences in entrepreneurial intentions among racial groups, with education playing a crucial role. Policy implications include the need for tailored support programs and inclusive financial products to foster a more equitable entrepreneurial ecosystem. This study underscores the importance of entrepreneurial education and highlights the necessity for ongoing research to understand the unique challenges faced by Nonwhite entrepreneurs, ultimately contributing to a more inclusive and dynamic economy.

The role of networking competencies in social enterprise performance

Purpose – The goal of this research was to identify the need for networking competencies in social enterprises rated by the managerial personnel of social enterprises and academic staff of universities in Latvia. Research methodology – A survey among representatives of Latvian social enterprises and academic staff of Latvian higher education institutions (HEIs) was conducted. The data was processed by means of average ranking, Kruskal-Wallis H test, and one-way-ANOVA test. Findings – The analysis of the results of Latvian survey revealed that: 1) social enterprise per- sonnel and university academic staff rated the role of networking competencies in social enterprise performance differently; 2) social enterprises rated cooperation with local governments higher and with industry associations as less important than the group of university academic staff. Research limitations – The research is limited to the analysis of only networking competencies. Practical implications – The research results contribute to the institutional framework for the social entrepreneurship ecosystem through recommendations to universities in creating training programmes of social entrepreneurship competencies. Originality/Value – The conducted empirical study is the first study of its kind in the Latvian social enterprise ecosystem, and it offers unique data that can be used for planning the development of networking competencies.

The Role of Sustainable Business Environment in Shaping Entrepreneurs’ Performance: Evidence from Myanmar

This study explores how Myanmar’s sustainable business environment influences entrepreneurs’ performance, focusing on the mediating role of knowledge spillover effects of foreign direct investment (KFDI). Data were gathered from 308 entrepreneurs across micro, small, medium, and large enterprises in Myanmar using online surveys via Google Forms and Microsoft Forms. The analysis employed partial least squares structural equation modeling (PLS-SEM) with SPSS 29 and SmartPLS 4. The results reveal that (i) the economic environment exerts a substantial positive influence on entrepreneurs’ performance; (ii) access to credit and the social environment show no discernible impact on entrepreneurs’ performance; (iii) both economic and social environments positively influence KFDI; (iv) access to credit has no effect on KFDI; and (v) KFDI partially mediates the relationship between the economic environment and entrepreneurs’ performance while fully mediating the relationship between the social environment and entrepreneurs’ performance. However, KFDI does not mediate the effect of access to credit on entrepreneurs’ performance. These findings underscore the critical role of sustainable economic and social environments in enhancing entrepreneurs’ performance and attracting foreign firms. Policymakers should prioritize these dimensions of the business environment to foster growth, maximize KFDI, and support long-term entrepreneurial success. This approach will not only ensure the economic vitality of Myanmar’s entrepreneurial ecosystem but also contribute to broader social and environmental sustainability.

Unveiling the path to success: critical factors for success and failure of university startups

This study aims to identify the factors that influence the success and failure of university-incubated startups. A systematic review methodology based on the Methodi Ordinatio framework was employed. The research was conducted on the Science Direct, Scopus, and Web of Science databases, totaling 108 articles. After removing duplicates and articles unrelated to the theme, 43 studies remained. Applying the InOrdinatio equation refined the selection to 30 articles, reaching the saturation point of the research corpus. It was found that the maturity of innovation departments, entrepreneurial culture, intellectual property management, institutional adaptability, entrepreneurship-oriented education, gender equity, and governmental support are essential for the success of these startups. Conversely, the main challenges to failure include legal difficulties, the need to enhance educational and institutional support, restricted access to funding, the absence of mentoring networks, and the importance of aligning universities with the broader entrepreneurial ecosystem. It is concluded that the success of university-incubated startups results from a multifactorial set, essentially depending on an integrated innovative ecosystem, institutional and governmental support, and robust entrepreneurial training. At the same time, failure often reflects inadequate funding and mentorship.

The Impact of Institutional Environment and Innovativeness on Early-Stage Entrepreneurial Activities: The Moderating Effects of Reciprocity

This study investigates the moderating effects of positive and negative reciprocity on the relationship between institutional environment dimensions—cognitive and normative institutions—and innovativeness on early-stage entrepreneurial activities. Utilizing logistic regression models and data from the Global Entrepreneurship Monitor (GEM) Adult Population Survey (APS) and the Global Preferences Survey (GPS) across 21 countries, which contains over 22,000 identified individuals, the findings reveal significant insights into how these institutional factors, innovativeness and reciprocity influence entrepreneurial activities globally. As a result of the analysis, (1) contrary to the predominant view that innovativeness universally promotes entrepreneurial success, this study identifies a significant negative relationship between innovativeness and early-stage entrepreneurial activities. (2) Positive reciprocity moderates the effects of both normative institutions and innovativeness, reducing the positive impact of normative institutions while mitigating the negative impact of innovativeness on entrepreneurial activities. (3) Conversely, negative reciprocity significantly amplifies the effects of both normative institutions and innovativeness, intensifying the positive impact of normative institutions and exacerbating the negative impact of innovativeness. By incorporating data from diverse national contexts, this research contributes to a comprehensive understanding of the factors affecting entrepreneurial activities and emphasizes the importance of fostering balanced social interactions. This approach aims to enhance the growth and sustainability of entrepreneurial activities globally, offering valuable insights for national policy development focused on sustainable entrepreneurial ecosystems.

Innovativeness and start-up performance: a configurational analysis of relational factors

PurposeThis study aims to explore which relational factors are crucial for accelerator-based start-ups to achieve high financial performance and whether innovation levels influence this relationship. Utilizing fsQCA and drawing from the resource-based view (RBV), we analyze 128 start-ups in a Spanish accelerator, split by innovativeness, to understand the impact of relational and human capital factors on performance.Design/methodology/approachThe study uses fuzzy-set qualitative comparative analysis (fsQCA) to investigate conditions leading to high financial performance among 128 start-ups in a Spanish accelerator, divided by innovativeness. Four key factors are analyzed: social capital, social competence, resource mobilization and entrepreneurial ecosystem support. fsQCA examines complex relationships between these factors and financial performance.FindingsRelational and human capital factors significantly impact start-up financial performance, varying with innovativeness. Highly innovative start-ups benefit from social competence and networked support, while less innovative but profitable start-ups rely on resource mobilization skills. The study highlights the contingent value of these factors, showing that unique configurations drive financial success.Research limitations/implicationsThe paper enhances the RBV in entrepreneurial contexts by highlighting the critical role of relational resources and their configurations. It suggests social competence and networked support are crucial for highly innovative start-ups, while resource mobilization is key for less innovative ones. These findings encourage nuanced theorizing of start-up success strategies, considering varying innovativeness levels and their impact on performance.Originality/valueThis study enhances understanding of the relationship between relational factors and financial performance in accelerator-based start-ups, considering innovation levels. It provides insights into how different configurations of social capital, competence, resource mobilization and ecosystem support lead to success. It underscores the importance of considering the contingent value of relational factors for start-up growth.

Beyond start-up formation: Effects of entrepreneurial ecosystem support activities for developing lagging regions

The paper elaborates on the positive effects of support activities for entrepreneurial ecosystems (EEs) on regional development in lagging regions beyond the obvious outcome of new enterprises. The emphasis on entrepreneurship support organisations to develop lively EE in lagging regions has been criticised for its limited success, high costs and low benefits for local citizens. We agree with this criticism in principle but argue that a meaningful evaluation of entrepreneurship support’s effects on regional development must also consider the wider impact of such promotion. Based on a literature review and empirical findings from our engagement in three EEs, we discuss such regional-level ‘outward causation’ and identify five broader effects how entrepreneurship support organisations strengthen development. They (1) promote innovative regional organisations, institutions and actors; (2) qualify and engage aspiring founders who later become qualified and motivated employees for incumbent companies and the public sector; (3) contribute to a positive regional image and identity; (4) enhance inter-sector and inter-municipality cooperation and (5) position start-ups as a positive impulse for developing declining cities. In conclusion, we propose an extended understanding of start-up support for developing lagging regions that considers entrepreneurship support organisations as catalysts of the positive effects associated with vibrant ecosystems.

Circular entrepreneurial ecosystem: a hybrid review and research agenda

Circular entrepreneurial ecosystem: a hybrid review and research agenda

Developing a Reflective–Formative–Formative Scale for Measuring University Entrepreneurial Ecosystem From Students’ Viewpoints

Developing a Reflective–Formative–Formative Scale for Measuring University Entrepreneurial Ecosystem From Students’ Viewpoints

The Effectiveness of Digital Entrepreneurship Ecosystem Toward Enriching Income Generation: The Moderating Role of Entrepreneurial Intention

This study attempts to examine the functionality of the digital entrepreneurship ecosystem for low-income household Bottom 40 (B40) students toward enriching income generation and entrepreneurial intention as the moderating role in the relationship. This research applied the quantitative method using an online questionnaire. A total of 500 data were gathered from 5 Universities in Malaysia, followed by Partial Least Squares-Structural Equation Modelling (PLS-SEM) analysis to examine the hypotheses suggested in the research. The results implied that the effectiveness of the digital entrepreneurship ecosystem has a positive effect on the enrichment of income generation among B40 students in a higher education institution. It was also shown from the moderating effect analysis that entrepreneurial intention has an important function as a moderator to strengthen the relationship. The research may assist B40 students in a higher education institution for income generation through digital entrepreneurship.

Entrepreneurs in residence at the nexus of regional economy and university entrepreneurial ecosystems

ABSTRACT Entrepreneurial ecosystem (EE) is a novel perspective to analyse the interplay between support systems and businesses in regions. Simultaneously, universities have been playing increasingly important roles in entrepreneurship, fostering economic growth both through the wider regional economy (RE) and their own university EEs (UEEs). Entrepreneurs in residence (EiRs), chosen by universities as exemplar entrepreneurs, therefore provide potentially important conduits between the regional economy, UEEs and entrepreneurs, leading us to explore how and why do EiRs and universities interact in relation to entrepreneurial ecosystems to enhance the regional economy? Our qualitative study of a UK university case, conducted in the context of the COVID-19 pandemic which severely impacted many businesses’ access to resources, gives a particular temporal context to this research. It identifies accessing resources, building legitimacy and undertaking bridging activities as the three highest-level dimensions characterising EiR–university interactions, which have relevance for both the UEE and regional economy more widely, offering a framework for future EiR programmes. This study contributes to the regional entrepreneurship and EE literature, by examining the role of regional universities as anchor tenants and catalysts of entrepreneurial growth and resilience within regions, and calls for further research into the evolution of EiR–university interactions in different institutional contexts.

The Impact of Market Entry Registration Procedures on the Development of Start-ups in the Clean and Digital Energy Sector: Findings for Public Governance

The global energy sector is undergoing a transformative shift driven by the urgent need to transition to clean and digital energy solutions. Start-ups are at the forefront of this transformation, providing innovative technologies to tackle critical challenges in energy production, distribution, and consumption. This study explores the influence of market entry registration procedures and regulatory frameworks on the growth and success of start-ups in the clean and digital energy sectors, highlighting their role in driving global energy transitions. This research aims to understand how procedural complexity, regulatory quality, and associated costs impact entrepreneurial activity in clean and digital energy industries. Employing a comprehensive methodology based on panel data analysis, the study examines multi-country datasets from authoritative sources, such as the International Energy Agency and the World Bank, spanning two decades. Fixed and random effects models are utilized to reveal nuanced relationships between regulatory conditions and start-up proliferation. By identifying key barriers and enablers, the research provides actionable insights into fostering an environment conducive to innovation and entrepreneurship. The findings underscore several critical aspects of market entry dynamics. Streamlined registration procedures emerge as a pivotal factor in promoting start-up growth, reducing the administrative burden and enabling quicker market access. Conversely, high capital requirements and extended registration timelines act as significant deterrents, limiting the ability of new ventures to scale effectively. Regulatory quality is shown to play a crucial role in fostering an innovation-friendly environment, with higher-quality frameworks positively correlated with entrepreneurial success. Additionally, the study reveals the synergistic effects of entrepreneurial ecosystems, where broader business activity enhances opportunities for start-up development. These results highlight the dual nature of regulatory frameworks, which can either facilitate or hinder start-up activity. While effective regulations provide necessary oversight and ensure market stability, overly burdensome procedures can stifle innovation and deter market entry. Policymakers are urged to strike a balance by simplifying procedural requirements, reducing capital thresholds, and maintaining robust regulatory oversight to foster a thriving ecosystem for clean and digital energy start-ups. The study’s contribution is particularly timely, given the accelerating pace of global energy transitions and the increasing focus on achieving sustainability goals. The actionable insights offered here can guide policymakers and stakeholders in creating regulatory environments that catalyze innovation and entrepreneurship. By enabling start-ups to navigate market entry challenges effectively, governments can harness their potential to drive technological advancements and contribute meaningfully to a sustainable energy future. Future research directions include cross-country comparative analyses to identify best practices and longitudinal studies to examine the long-term impacts of regulatory optimization on entrepreneurial ecosystems. The findings of this study provide a foundation for ongoing efforts to align regulatory practices with the goals of a decarbonized and digitally integrated energy landscape, ensuring a resilient and inclusive energy transition.

Development of a conceptual framework for entrepreneurial culture

PurposeInnovation is key. It improves a nations’ standing in international competition and in-creases the productivity of the workforce – a significant aspect in aging societies with a declining entrepreneurial activity. But how can innovation be fostered? This paper argues that entrepreneurial culture is an underestimated solution to this difficult challenge. It therefore differs from common models in which other measures such as financial capital or networks play a predominant role and thus mask the influence of entrepreneurial culture on innovation in entrepreneurial ecosystems.Design/methodology/approachUsing a qualitative literature analysis, the paper links various interdisciplinary touch points to the entrepreneurial ecosystem – including the individual-focused cognitive aspects of entrepreneurs, the social and spatial communities and the ecosystem as a service model.FindingsThe framework is conceptualized as a multi-layer model, enabling a discussion of policy measures in socioeconomic spaces with a short- and long-term perspective. It dispenses artificial assumptions and considers the complexity of human behavior as a strong and reciprocal driver of entrepreneurial culture.Practical implicationsWith this framework, the paper tends to qualify policy makers and researchers in a de-tailed manner, when it comes to the formulation and application of culture-focused innovation policies.Originality/valueThe paper enriches the existing research with a new perspective on the relation between entrepreneurial culture and entrepreneurial ecosystems, which especially emphasizes the entrepreneurs experienced reality and its multi-level embeddedness.

The Well-Being of Future Generations Act (Wales, 2015): towards an ecosystem perspective

Purpose Recent times have seen an increasing emphasis on sustainable development as a means of enacting positive regional change. There has also been an emergence in discussions around well-being and its role in promoting holistic sustainable development, such as in Wales through the Well-Being of Future Generations Act (Wales). This paper aims to investigate the role that the Well-Being of Future Generations Act (Wales) currently plays in the ecosystem across South West Wales and ways in which the Well-Being Act could be developed and implemented further.Design/methodology/approach This qualitative research is based on seven semi-structured interviews conducted with participants drawn from a range of entrepreneurial ecosystem actors in South West Wales, UK. Interview data were analysed using thematic analysis, leading to the establishment of seven themes.Findings The findings suggest that there is passion and positivity around the Well-Being of Future Generations Act amongst ecosystem actors. However, policymakers need to consider how to extend the reach of the principles of the Well-Being of Future Generations Act beyond public bodies. This could be achieved through more effective communication of the values of the act and increased collaboration between various stakeholders.Originality/value The concept of well-being remains relatively new in the context of regional economic development and therefore requires closer investigation, particularly how this can be evaluated. Wales is one of three countries worldwide to implement well-being legislation, and there is a lack of research examining the implementation of the Well-Being Act, particularly from regional development and an entrepreneurial ecosystem perspective.

Analysis of innovation competencies and the creation of entrepreneurship

The research explores the role of innovation competencies in the university environment and its influence on the creation of entrepreneurship, in the Ecuadorian context. These competencies, understood as a set of technical, creative, digital and strategic skills, are essential to transform ideas into sustainable initiatives. The relationship between innovation and entrepreneurship is analyzed from a theoretical and empirical perspective, addressing how institutional and cultural factors can influence entrepreneurial development. A mixed-methods approach was adopted. The qualitative phase consisted of interviews with technology startup entrepreneurs to identify key competencies; while the quantitative phase included surveys of 150 entrepreneurs from various sectors, statistically evaluating the relationship between these competencies and business performance. Tools such as the Likert scale and linear regression analysis were used to measure the impact of competencies on performance. The results underscore the relevance of strategic and digital competencies to generate competitive advantages, highlighting their role in uncertainty management and process optimization. Additionally, challenges such as limited access to resources and the stigma associated with failure were identified, which hinder the consolidation of entrepreneurial projects in Ecuador. This study contributes to the design of educational strategies and public policies aimed at strengthening the innovation and entrepreneurship ecosystem, promoting a positive impact on the sustainable development of the country

System dynamics and geometric compromise programming: assessing the impact of entrepreneurship wage subsidies on macroeconomic objectives

AbstractEntrepreneurship plays a crucial role in economic development, and wage subsidies for new firms serve as a key instrument to promote it. This study integrates system dynamics with geometric compromise programming to assess the impact of entrepreneurship wage subsidies on four macroeconomic objectives: maximizing the number of new firms, employment, and tax revenue, while minimizing subsidy costs. It is the first study to combine these methodologies, enabling an analysis of the complex interactions between the labor market, the real sector, and government interventions. Key findings reveal that decision variables, such as subsidy parameters, impact utility objectives with a one‐year lag. Increasing the number of benefit variables extends the optimal subsidy period while reducing the subsidy limit. Most study cases show similar effects for workers and tax revenue. The model developed in this study provides valuable decision support for policymakers, offering insights into the macro‐level dynamics of a national entrepreneurial ecosystem.

Digital entrepreneurial ecosystem: the role of the sharing economy in driving innovation

ABSTRACT This study examines the role of the sharing economy within digital entrepreneurial ecosystems (DEEs) and its influence on fostering opportunities for digital entrepreneurs. By exploring the complex interactions among businesses, technologies, and markets, the paper highlights how DEEs facilitate the adoption of sharing economy-related digital business practices. Using a qualitative exploratory approach, we conducted open-ended interviews with 88 business managers actively engaged in the sharing economy across various sectors. Thematic analysis was employed to uncover the key challenges and opportunities businesses face in integrating digital transformation processes (DTP) into their strategies. The research introduces key frameworks, including Sharing Economy Digital Infrastructure Governance (SEDIG), Sharing Economy Digital User Citizenship (SEDUC), and Sharing Economy Digital Marketplace (SEDM), to categorize ecosystem players and analyse their collaborative efforts in supporting digital entrepreneurship. Findings emphasize the need for greater consistency in SEDIG approaches across regulatory bodies, as regional disparities in governance create uncertainty for entrepreneurs. The study also underscores the long-term benefits of responsible operations and technological investments, despite initial costs, and calls for policy interventions to address ongoing entrepreneurial ecosystem challenges.

Assessing business management factors in young agricultural entrepreneurs in Indonesia

Indonesia faces a pressing challenge in its agricultural sector: the declining participation of young workers due to limited entrepreneurial opportunities and inadequate business management skills. This study investigates the factors influencing business management among young agricultural entrepreneurs participating in the growth of young agricultural entrepreneurs (PWMP) program at Politeknik Pembangunan Pertanian (Polbangtan) Medan, Indonesia. Utilizing a descriptive quantitative approach, data were gathered through questionnaires and analyzed using Likert scale measurements and multiple linear regression tests. The findings highlight that business management capabilities were categorized as high (79.68%), supported by strong personality traits (84.30%), high knowledge levels (83.05%), extensive experience (81.13%), a supportive family environment (75.80%), and a robust entrepreneurial ecosystem (79.78%). Regression analysis revealed that personality, experience, family environment, and the entrepreneurial ecosystem significantly impacted business management capabilities, while knowledge had no notable effect. These results underscore the importance of structured interventions, such as internships and business incubation programs, to enhance practical business skills and foster entrepreneurial success.