Entrepreneurial Ecosystem Research Articles

Traditional and digital entrepreneurial ecosystems: a framework of differences and similarities

Entrepreneurial ecosystems in various geographical areas of the world are often compared in the context of entrepreneurship research. There are far fewer comparative studies on different types of ecosystems. In this study, a traditional entrepreneurial ecosystem based in Canada is compared with a digital entrepreneurial ecosystem specializing in life sciences, in Switzerland, bridging the gap between both and yielding previously unknown insights. The aim is twofold: to decipher both the differences and the similarities between the two models and to describe the predominant type of entrepreneurship in each case. The method consisted of a quantitative study of socio-economic data in combination with the administration of a qualitative analysis of interviews with—industry, government, and university—experts with links to one or the other ecosystem. The main findings showed that the traditional ecosystem had varied entrepreneurial support, public financial support, and collaborative networks between SMEs and start-ups, whereas in the specialized digital ecosystem, business support tended to be sector-specific with private financial support and networks emerging between multinationals and start-ups. Our study contributes to entrepreneurship research by showing that high-tech industries such as biotechnology and medical technology manage to go beyond a purely digital approach in digital ecosystems. The generic nature of the high-tech industries within the traditional ecosystem was the main driver of traditional entrepreneurship, while the sector-specific approaches of the industries within the specialized digital ecosystems were shown to drive innovative entrepreneurship.

Failure’s virtues: the seeding of an emerging entrepreneurial ecosystem in a peripheral region

ABSTRACT A key strategy of governments in economically-lagging regions is to provide financial support to innovative start-ups. Yet, if such businesses fail, governments are criticized for ‘wasting tax-payers money’. This paper challenges this narrative. It provides a case study of Consilient Technologies, located in St John’s, Newfoundland and Labrador, Canada’s most economically under-developed province. The company had developed technology for the emerging cellular-phone market. It received significant funding from the Federal and Provincial governments. It recruited talent who would have left the province to seek employment and attracted others back to the province. It provided its workforce with the opportunity to acquire new competences, experience and knowledge along with entrepreneurial learning. Following its closure, its employees either moved to other technology firms in the emerging local entrepreneurial ecosystem or started their own businesses. The company also had significant demonstration effects for aspiring technology entrepreneurs. The study demonstrates to policy-makers that businesses that they support but which subsequently fail can nevertheless have a positive impact on the ecosystem. Accordingly, they need to have need to a tolerance for failure.

Social entrepreneurial ecosystems in Euroregions

Purpose The purpose of this paper is to extend the knowledge of social entrepreneurial ecosystems and test their effect on social entrepreneurial activity in a cross-border context. Design/methodology/approach The current research used the fuzzy set Qualitative Comparative Analysis method on a sample of 4,357 cross-border cooperation (CBC) projects implemented between 2014 and 2020, spread over 40 Euroregions. Findings Single ecosystem elements can be sufficient conditions but with a limited effect on cross-border social entrepreneurship. Configurations of ecosystem elements can be necessary conditions with synergetic effects. A geographical pattern was identified in the spread of configurations across Europe. Research limitations/implications Geographical, quantitative and project data constraints exist. The authors call for research into synergies between ecosystem elements in cross-border contexts and ecosystem patterns across Europe. Practical implications Policymakers, their cross-border counterparts and Euroregions could coordinate their efforts to improve ecosystems’ impact and involve social entrepreneurs to scale impact in neighboring countries. Social implications Involving social entrepreneurs in CBC projects will show how social impact in one country can be valuable for solving issues in the neighboring country. This will increase the valuation of innovative solutions, create opportunities for scaling social impact and contribute to the European (EU) Cohesion Policy. Originality/value The study uses a novel approach by investigating the effect of social entrepreneurial ecosystems in Euroregions on social entrepreneurial activity in a cross-border context. The study shows that the impact of social entrepreneurial ecosystems does not stop at the country’s borders.

Gender disparities among financial entrepreneurs: The case of hedge funds

ABSTRACT Hedge funds (HFs) operate as small and medium-sized enterprises and are managed by entrepreneurs. When it comes to gender, the HF industry is among the most unequal sectors. International associations tried to reduce this gap by creating entrepreneurial ecosystems tailored to women in finance. Such initiatives are ineffective if quality is not present. The market is quick to assess who will survive and who will not. If there is a gender gap, we must first assess whether it comes from differences in performance. Our results indicate that this is not the case, at least for equity HFs with global investment focus. Sociocultural factors are more likely the reason. Our findings should encourage women in finance to break sociocultural barriers and take on leadership responsibilities. Efforts should focus on encouraging women to join the finance industry at the earliest career stages. Efficient capital markets will then select the best managers, regardless of their gender.

Differential effects of collaborative partners on financial and growth outcomes in ventures in South Korea

ABSTRACT In the rapidly evolving landscape of venture businesses, understanding the impact of collaborations is crucial. This study examines how different types of organizational collaborations influence the financial performance and long-term growth prospects of venture enterprises. Drawing on data from the 2022 Detailed Venture Business Survey in South Korea, which encompassed 1,202 Korean ventures with prior collaboration experience, the research aims to provide a comprehensive understanding of collaborative dynamics. Utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) as the methodological approach, the study offers an in-depth analysis of how partnerships with various entities such as universities, research institutes, and small to large enterprises distinctly affect venture outcomes. Findings reveal that while collaborations with universities and small enterprises significantly boost immediate financial performance, they do not necessarily contribute to sustainable long-term growth. In contrast, partnerships with medium and large enterprises, though less impactful in the short term, show a positive correlation with long-term growth prospects. These results provide valuable insights for venture managers, policymakers, and investors, highlighting the need for strategic alignment of collaboration choices with business goals. This study thus contributes to the broader discourse on the strategic management of collaborations in the entrepreneurial ecosystem.

Female entrepreneurial support requirements: post pandemic ecosystems in India

PurposeThe corona virus outbreak has affected the entrepreneurial ecosystem adversely. This in particular has impacted on females. This study aims to identify the factors affecting the entrepreneurial intention (EI) of females under post-COVID adverse conditions.Design/methodology/approachA total of 340 articles were screened applying the preferred reporting items for systematic reviews and meta-analyses method. The EI of individuals undertaking different professional courses from three top National Institute Ranking Framework (NIRF) government institutes were then analyzed. In the expert analysis, the nominal group technique (NGT) and analytic hierarchy process (AHP) were used to identify and rank the crucial factors. Subsequently, in the exploratory analysis, a 19-item questionnaire was framed. The data was analyzed using SmartPLS 3.FindingsResilience, entrepreneurial education, self-concept and self-efficacy, social influence and opportunity perception were identified as critical indicators. Resilience was identified as the most significant factor. The partial least square structural equation modeling (PLS-SEM) revealed that all the factors except social influence had significant effect on the EI of females.Research limitations/implicationsThis study focuses primarily on factors affecting females in India. As ecosystems and support vary by region and country, the authors suggest that this study be replicated in different regions/countries in the future.Practical implicationsThe potential entrepreneurs can use this study's reference to identify the abilities they need. The government and academic institutions can have skill/training programs to enhance the effect of important factors identified in the study.Originality/valueWhile there is growing research of entrepreneurship and entrepreneurial marketing post-pandemic, there are a lack of Indian studies and female entrepreneurship studies.

The role of tourism entrepreneurial ecosystems to support sales growth of European countries

PurposeOur comprehensive study, which is highly relevant to the current state of the tourism industry, investigated the extensive impact of tourism entrepreneurial ecosystems (TEE) on sales growth in European countries based on a sample of 109 entrepreneurs.Design/methodology/approachWe studied 109 entrepreneurs in the tourism sector in Germany and France and analyzed the data using quantitative methods.FindingsThe results showed that financing and funding, networks, technological and international trade affect the sales growth of the tourism entrepreneurs. In addition, the uneducated workforce, legal and political factors as well as TEE do not influence the sales growth.Originality/valueThese findings have significant and practical implications for entrepreneurs and policymakers in the tourism industry, providing them with valuable insights for decision-making.

Inside-out and outside-in: How entrepreneurial ecosystems can build legitimacy through signaling

ABSTRACT The entrepreneurial ecosystem is increasingly drawing the attention of scholars and practitioners, underscoring the importance of collective dynamics between entrepreneurs and entrepreneurial-support intermediaries in fostering entrepreneurial activity. The entrepreneurial journey is characterized by information asymmetry, with entrepreneurial actors sending signals as representations of their underlaying qualities, hoping to acquire necessary resources. Current entrepreneurship research predominantly applies signaling theory to individual and venture-level activities. However, studies that explore signaling within the broader context of entrepreneurial ecosystems are scarce. This paper aims to bridge the entrepreneurial ecosystem-signaling gap by offering insight into how emerging entrepreneurial ecosystems gain legitimacy. We analyze a nascent, privately governed entrepreneurial ecosystem located in Valencia, Spain. Employing a conceptual model based on our findings, we introduce a key boundary condition for the study of signaling in an entrepreneurship context.

Location factors and ecosystem embedding of sustainability-engaged blockchain companies in the US. A web-based analysis

While many digital technologies provide opportunities for creating business models that impact sustainability, some technologies, especially blockchain applications, are often criticized for harming the environment, e.g. due to high energy demand. In our study, we present a novel approach to identifying sustainability-focused blockchain companies and relate their level of engagement to location factors and entrepreneurial ecosystem embeddedness. For this, we use a large-scale web scraping approach to analyze the textual content and hyperlink networks of all US companies from their websites. Our results show that blockchain remains a niche technology, with its use communicated by about 0.6% of US companies. However, the proportion of blockchain companies that are committed to sustainability is significantly higher than in the overall firm population. Additionally, we find that such sustainability-engaged blockchain companies have, at least quantitatively, a more intensive embedding in entrepreneurial ecosystems, while infrastructural and socio-economic location factors hardly play a role.

Barriers and Opportunities for Women Entrepreneurs in Climate-Smart Industries in India

Enhancing women entrepreneurship is being increasingly recognized as a powerful driver for India’s economic growth (Ramya U et al, 2024). This study therefore examines the barriers and opportunities for women entrepreneurs in climate-smart industries in India- a sector that is crucial for sustainable development and economic growth. Although women's contributions to innovation and environmental sustainability are increasingly acknowledged, there are still barriers that prevent them from participating fully in these fields (Srinivasan A et al, 2012). The study identifies key barriers such as access to finance, lack of technical expertise, societal norms, and limited access to networks and mentorship. The prevailing gender prejudices in the entrepreneurial ecosystem exacerbate these barriers, making it more challenging for women to enter and succeed in climate-smart sectors (Arora M, 2024). The paper also highlights emerging opportunities for women entrepreneurs. Government initiatives, increased awareness about climate change, and the global shift towards sustainable practices are creating new avenues for women to engage in green businesses. ¬¬The study suggests that targeted interventions through capacity building and skill development programs, better access to finance and networks along with effective mentorship, can significantly enhance the participation of women in climate-smart industries (Banu J, 2024).

From Potential to Action: Strategies for Supporting Female Founders in the Pre-Start-Up Phase

In today’s global economy, the role of start-ups is recognized as crucial for a country's competitiveness. Creating a supportive entrepreneurial ecosystem is therefore essential to enable founders to realize their potential optimally. Notably, there is a significant gender disparity in start-ups, suggesting a vast untapped entrepreneurial potential among women. This research aims to enhance the utilization of female start-up potential by providing actionable recommendations, based on an empirical analysis of the pre-start-up process of (potential) female founders. Through a qualitative research methodology, this study investigates the factors influencing women's journey towards entrepreneurship, considering diverse biographies and life situations. Interviews with ten women showed the complexity of the pre-start-up phase and the necessity for a broad support system. The study identifies several key areas for action to foster female entrepreneurship. Firstly, increasing awareness and visibility of self-employment as a viable career path for women is crucial, requiring more female role models and media representation to challenge traditional gender roles and stereotypes. This could cultivate a natural inclination towards entrepreneurship and sectors with high start-up activity. Moreover, lessening the disproportionate burden of family responsibilities on women is essential, suggesting enhancements in childcare facilities and encouraging shared domestic duties. The research further suggests the implementation of support programs to reduce barriers and provide a realistic view of entrepreneurship, alongside the potential benefits of mentorship in both pre- and post-start-up phases. Women's risk-averse, cautious approach in the pre-start-up process often leads to hesitance in developing innovative projects. Encouraging a focus on market needs and early engagement with potential customers, alongside proactive network building, seeking co-founders, or outsourcing, can address knowledge gaps and reduce uncertainties, making self-employment a more attractive option. This study emphasizes the importance of a collaborative effort among various stakeholders in the entrepreneurial ecosystem to unlock the entrepreneurial potential among women.

The Power of Proximity: The Impact of Proximity Between Early-Stage Investors and Universities

Early-stage investors and universities are crucial stakeholders in entrepreneurial ecosystems, yet their combined impact remains underexplored. This paper examines how the proximity between early-stage investors and universities affects the founding rate and success of affiliated startups. The analysis utilizes data from the Crunchbase 500 list for Germany. Findings indicate a positive correlation between the proximity of early-stage investors and universities with higher success rates and founding rates of affiliated startups. However, the results show varying dynamics and partial statistical significance, suggesting different implications for small versus large universities. Should these tendencies be confirmed with a more extensive dataset, the findings could have practical implications for early-stage investors and universities, tailored to their size.

Key Factors for Student Startup Success: Insights from Higher Education Professors

The study aims to identify and analyse the key factors of student start-ups from the perspective of higher academic institution professors. Entrepreneurial students in higher education face challenges such as limited funding, scarce resources, lack of business experience and struggling to balance academic commitments with their start-up ventures. Additionally, they struggle with navigating complex business regulations and often lack access to proper networks or mentorship. This research contributes to a better understanding of how the entrepreneurial ecosystem in higher education institutions can support student start-up initiatives to succeed. For the research, a survey was conducted targeting ten experts from higher education institutions engaged with business or entrepreneurial study programmes. The research used the content validation method and descriptive statistical analysis to evaluate the responses, focusing on measures of central tendency and variability to determine the degree of consensus among respondents regarding the 36 statements provided. The study results revealed that while respondents agreed on the importance of student attitudes towards failure and self-confidence, there was strong disagreement among them regarding the belief that non-business students have a lesser chance of creating a successful startup. Also, experts suggested that entrepreneurship education should place more emphasis on the development of students' entrepreneurial mindset, which is considered to be an essential quality for the uncertain journey of entrepreneurship. Finally, the survey results indicated that networking and experiential learning are crucial for startup development. This underscores the importance of scientific debate not only on innovative funding models but also on non-financial support systems that surpass traditional educational methods in higher education environments.

Perceived Success and Entrepreneurial Identity in West Africa

This research aims to understand the Fake It Until You Make It (FIUYMI) culture and its impact on entrepreneurial identity in the West African startup ecosystem. Self-presentation is important for entrepreneurs and often they tend to exaggerate their success. In West Africa, this is usually the case for entrepreneurs that want to gain social acceptance among their peers and to secure funding. It is represented by a desire of belonging and is amplified with digital social platforms and peer pressure. This study aims to evaluate the impact of perceived success using mixed methods research with both qualitative and quantitative data. The qualitative phase consists of semi-structured interviews with 20 startup founders from West Africa. The initial objective is to understand the motivations behind employing FIUYMI behaviour and its effect on the entrepreneurial identity and sense of success. A structured survey is then conveyed to 50 startup founders across the same region. The second objective is to quantitatively assess the prevalence of this behaviour and its impact on self-perception, and psychological well-being. Results suggest that FIUYMI is at first a good strategy for entrepreneurs to enhance perceived credibility and attract support and can be a positive tool for entrepreneurs to some extent as it boosts their confidence and network. It may later lead to psychological stress and has a perverse effect on entrepreneurs of not belonging to their community: Even when they achieve their desired outcome, they may consider their achievements to be fraudulent which is linked to a sense of imposter phenomenon. The research goal is to understand the complexities of perceived success and the ‘Fake it Until You Make it’ attitude in the West African context informing effective interventions in entrepreneurial behaviour. By showing its negative impact on an entrepreneur's journey, the research also aims to enhance accurate self-presentation and contribute to a more trustworthy entrepreneurial ecosystem in West Africa for entrepreneurs and investors.

Fostering environmentally sustainable business: Analysis of factors from entrepreneurial ecosystem perspective

Sustainable business practices are paramount for long-term environmental preservation and fostering economic growth. Despite the extensive body of literature on various aspects of business sustainability, there remains a noticeable gap in understanding the fundamental factors influencing its adoption. Drawing on the entrepreneurial ecosystem perspective, this study endeavors to examine the hierarchical importance of various factors affecting the environmental sustainability of the business. Employing a comprehensive literature review, we meticulously identified a list of factors and performed analysis using data gathered from experts. In particular, we used Total Interpretive Structural Modelling and MICMAC approach to analyze the identified factors, with an aim to uncover their interlinkage and association. Our findings underscore the critical role played by the government in shaping business sustainability. Additionally, factors such as consumer, technological innovation, and market competition also hold substantial importance. In contrast, factors such as financial considerations, stakeholders, leadership dynamics, human resources, infrastructure, and internal organizational factors appear to have comparatively less influence. Our study not only reveals the significance of these factors but also unveils the intricate web of interrelationships among them. The resulting strategic theoretical framework offers valuable insights for managers and policymakers, highlighting the practical relevance and contextualized interactions among various factors.

Exploring the coevolution of entrepreneurial ecosystems and institutional entrepreneurship: The case of sustainable entrepreneurship

While the literature has emphasized that sustainable entrepreneurs have to carry out institutional entrepreneurship against their own adverse environment, we still know little about entrepreneurs' perception of their entrepreneurial ecosystem and how its evolution might influence the need for institutional entrepreneurship. We address this gap by combining multiple data sources, used through an in‐depth case study of four Parisian sustainable startups, two founded in the 2010s and two founded in the 2020s. Results indicate that the entrepreneurial ecosystem was considered hostile for sustainable startups in the 2010s, which led entrepreneurs to conduct rather isolated institutional entrepreneurship. While influencing their entrepreneurial ecosystem towards sustainability, they opened opportunities for similar new entrants, who now face fewer difficulties. However, sustainable entrepreneurs still act as institutional entrepreneurs in a favourable environment, beyond the sole interest of their startup. This qualitative study emphasizes sustainable entrepreneurship's challenges with respect to each component of their entrepreneurial ecosystem according to their context.

Entrepreneurial Bricolage, Business Model Innovation, and Sustainable Entrepreneurial Performance of Digital Entrepreneurial Ventures: The Moderating Effect of Digital Entrepreneurial Ecosystem Empowerment

Digital entrepreneurial ventures are increasingly embracing a high-quality development trajectory that prioritizes green, low-carbon, and sustainable practices, necessitating ongoing environmental enhancements and the active assumption of social responsibilities alongside economic progress. Despite this, there is a significant disparity in the sustainable entrepreneurial performance among these ventures, highlighting the need for an in-depth exploration of the underlying factors. This study develops a theoretical framework that links entrepreneurial bricolage to business model innovation and ultimately to sustainable entrepreneurial performance, all within the context of a digital entrepreneurial ecosystem (DEE). The research focuses on 371 digital ventures operating within the DEE, examining the relationships and effects among the variables. The findings indicate that entrepreneurial bricolage has a positive impact on sustainable entrepreneurial performance. Furthermore, entrepreneurial bricolage is found to foster business model innovation, which in turn, enhances sustainable performance. The investigation demonstrates that business model innovation partially mediates in the link between entrepreneurial bricolage and the sustainable entrepreneurial performance. Additionally, the DEE’s empowering influence is shown to positively regulate the connection between entrepreneurial bricolage and business model innovation, as well as between business model innovation and sustainable entrepreneurial performance. The empowering effect of the DEE also exerts a positive moderating influence on the indirect impact of sustainable entrepreneurial performance mediated by business model innovation, stemming from entrepreneurial bricolage. This study underscores the significance of entrepreneurial bricolage and the digital entrepreneurship ecosystem, demonstrating that digital startups ought to augment their bricolage skills and leverage the ecosystem’s support to attain enduring sustainable entrepreneurial performance. The conclusions drawn from this research offer valuable insights and serve as a reference for strategies aimed at enhancing the sustainable performance of digital entrepreneurial ventures within the DEE.

Social Cognitive Career Theory on Entrepreneurial Intention of Vocational Students

This study aims to examine the mediating role of outcome expectation and self-efficacy in the relationship between entrepreneurial knowledge and entrepreneurial intention among vocational students. Using a sample of 150 SMK students, data was collected via questionnaires and analyzed using the structural equation modeling (SEM) technique in Smart PLS 3.0, with Social Cognitive Career Theory (SCCT) as the theoretical framework. The results show that 1) entrepreneurial knowledge positively influences entrepreneurial intention, 2) self-efficacy mediates the relationship between entrepreneurial knowledge and entrepreneurial intention, and 3) outcome expectation also mediates this relationship. These findings contribute to the literature by validating SCCT in understanding entrepreneurial intention. The practical implications suggest the need for fostering an entrepreneurial ecosystem within the school environment as a strategy to increase entrepreneurial interest among vocational students.

Association Between Entrepreneurship Ecosystem and Entrepreneurial Behavior & Attitudes

Entrepreneurship ecosystem and entrepreneurial behaviour & attitudes are significantly associated with several variables associated with social development, economic development, science & technological development, intellectual property right regime, geographical location, government policies, demographical profile, and cultural aspects of the people. This study creates entrepreneurship ecosystem development index (EEDI) and entrepreneurial behaviour & attitude index (EBAI) to explain the relative performance of entrepreneurship ecosystem and entrepreneurial behaviour & attitudes, respectively. Different indicators associated with entrepreneurship ecosystem and entrepreneurial behaviour & attitudes, respectively used to create EEDI and EBAI. These indicators are recognized as a key element of entrepreneurship ecosystem and entrepreneurial behaviour & attitudes by global entrepreneurship monitor (GEM). Subsequently, it examined the association of estimated EEDI and EBAI by including some relevant indicators as control variables in proposed empirical models.

Investigating the Drivers of Firm Internationalisation: A Fuzzy Set Analysis Using Global Entrepreneurship Development Index Data

Firm internationalisation, a key driver of global economic growth, is influenced by various entrepreneurial resources. This study explores the relationships between human capital, risk capital, risk acceptance, opportunity perception, and firm internationalisation using cross-national data from the Global Entrepreneurship Development Index (GEDI). Employing fuzzy set qualitative comparative analysis (fsQCA), this study analyzes data from 137 countries. The findings highlight two primary configurations driving internationalisation: (1) risk acceptance and opportunity perception, and (2) risk capital and opportunity perception. Opportunity perception emerges as a critical factor in both configurations, while human capital is not found to be a necessary condition. These results contribute to a better understanding of the factors that foster firm internationalisation and inform policies aimed at promoting global entrepreneurial ecosystems.