Entrepreneurial ecosystems, entrepreneurial activity and economic growth: new evidence from European regions

Abstract

A latent class model is applied to allow entrepreneurial ecosystems (EEs) to influence the effect of entrepreneurial activity on growth in European Union regions. Using this methodology, clusters of regions that differ significantly in their relationship between entrepreneurial activity and growth are identified. This is consistent with the hypothesis that EEs affect this relationship. Subsequently, cluster membership is related to regional characteristics representing a range of components of EEs and marked differences in a variety of these regional characteristics are found. Taken together, the results support the notion that EEs help shape the impact of entrepreneurial activity on growth.

Entrepreneurial ecosystems in cities: The role of institutions

“…In contrast to previous studies using country-level data [ 26 , 36 ] and regional data [ 23 , 24 , 109 ], our results show a more complicated relationship between economic growth and entrepreneurship in developing countries than previously thought. Entrepreneurship might not be always desirable economic activity in the ecosystem and across different institutional contexts [ 41 ], or perhaps in some contexts, institutions can cancel each other out or be so complex that they create a “red tape.” Our work compliments entrepreneurship ecosystem studies and institutional theory that suggest that the bottom-up approach to entrepreneurial ecosystems is the only right one.…”

How Effective Has Global Entrepreneurship Been As A Tool For Economic Growth?

“…These initiatives inclusive of the foreign components increase both productivity and number of new firms which plays a major role in job creation and economic growth (Farinha et al, 2018). A lot of empirical studies have been done to confirm the positive relationship between global entrepreneurship and economic growth but the extent of the relationship is not yet generally agreed (Content et al, 2019). This study reviewed 25 (20 from the specified database and 5 from other sources) different empirical studies conducted from 2009 to 2019 on the link between global or international entrepreneurship and economic growth.…”

Investigating Social Entrepreneurship: New Research Findings

“…Some authors use an approach that considers entrepreneurship as a proxy for the impact of institutions on economic growth (Content, Bosma, Jordaan, & Sanders, 2019).…”

“…SE as an alternative state mechanism for solving social problems; 4. SE as a socially oriented business (Content, Bosma, Jordaan, & Sanders, 2019;Deryugin, Lebedintseva, Jin, Shi, & Shilyaeva, 2018). Now the first attempts are being made to select organizations that are candidates for social entrepreneurs.…”