Entrepreneurial ecosystems in cities: establishing the framework conditions

Abstract

This study focuses on regional entrepreneurial ecosystems and offers a complex model of start-ups, Regional Entrepreneurship and Development Index (REDI) and six domains of the entrepreneurial ecosystem (culture, formal institutions, infrastructure and amenities, IT, Melting Pot and demand). Altogether they capture the contextual features of socioeconomic, institutional and information environment in cities. To explain variations in entrepreneurship in a cross-section of 70 European cities, we utilize exploratory factor analysis and structural equation modelling for regional systems of entrepreneurship using individual perception surveys by Eurostat and the REDI Index. This study supports policymakers and scholars in development of new policies conducive to regional systems of innovation and entrepreneurship and serves as a basis for future research on urban entrepreneurial ecosystems.

Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems

“…Various scholars have attempted to explore and interpret ecosystems with respect to their social, cultural, behavioural, institutional and biological determinants. Indeed, the fusion of these diverse perspectives is perhaps its strongest asset but at the same time makes definitional and measurement issues extremely problematic (Audretsch and Belitski, 2016). While scholars have traditionally viewed the process of new firm formation through a resourcebased lens (Garnsey, 1998), more recently greater attention has been attributed to the behavioural, social and cultural underpinnings of entrepreneurship (Sarasvathy, 2001;Baker and Nelson, 2005;Welter, 2011).…”

“…However, the majority of observers view ecosystems primarily as a spatial concept (Feldman and Braunerhjelm, 2006;Mason and Brown, 2014;Audretsch and Belitski, 2016) to explain why certain places have high levels of entrepreneurial activity (Spigel, 2015;Stam, 2015). So rather than having innovation at its core, entrepreneurship is the fundamental driver behind the concept.…”

“…While this systemic concept is intuitively appealing, its rapid adoption has tended to overlook the heterogeneous nature of specific ecosystems. Given the increasing attention being paid to the concept by scholars Audretsch and Belitski, 2016) together with its increasing prominence in public policy circles (Isenberg and Onyemah, 2016), it appears timely to scrutinise the concept in greater depth to help develop this important area of research (Borissenko and Boschma, 2016). Accordingly, this paper offers a critical review and conceptualisation of the ecosystems concept by unpacking its theoretical limitations, core dynamics, measurement approaches and use in policy-making.…”

Developing and governing entrepreneurial ecosystems: the structure of entrepreneurial support programs in Edinburgh, Scotland

“…First, a supportive culture within the ecosystem normalises entrepreneurial activities, increasing both the supply of potential entrepreneurs and the number of people willing to accept the risks of working at, investing in, or otherwise supporting new ventures (Minguzzi and Passaro, 2000). Second, entrepreneurs draw resources such as knowledge spillovers, investment capital, and expert mentorship from their ecosystem, increasing their ability to survive and grow (Nijkamp, 2003, Audretsch et al, 2011.…”

“…While there have been attempts to identify entrepreneurial ecosystems through large scale statistical analyses innovation and firm formation rates (e.g. Acs et al, 2014, Audretsch andBelitski, 2016), we know comparatively little about the processes through which ecosystems benefit entrepreneurs . As a result it is difficult to understand the different ways ecosystems change over time and develop different institutional and social structures.…”