Entrepreneurial Ecosystems: Measurement, mechanisms and outcomes

Abstract

Entrepreneurship is an important driver of economic growth. Entrepreneurs create new jobs, introduce innovations in the market and improve productivity. In addition to increasing economic welfare, entrepreneurs can also contribute to solving important societal challenges. For these reasons there is much interest in how we can stimulate entrepreneurship. One of the determining factors is the environment in which entrepreneurship takes place. Entrepreneurs use resources from their environment and act in a specific context shaped by rules and culture. To study the interplay between the entrepreneur and their context, the entrepreneurial ecosystem concept emerged. An entrepreneurial ecosystem comprises a set of interdependent actors and factors in a certain territory that enables productive entrepreneurship. While there has been a lot of interest in the concept from both policymakers and practitioners, we still lack an understanding of various mechanisms in the entrepreneurial ecosystem. To study these we need more structural quantitative data. This dissertation creates a large dataset to measure entrepreneurial ecosystems in all regions in Europe. This data is then analyzed to better understand the interdependency between the different elements in the entrepreneurial ecosystem. While it is well established that entrepreneurship contributes to economic growth, it is not clear how entrepreneurs might affect other dimensions of societal wellbeing such as sustainability or social inclusion. Since high-growth firms are generally considered the most important output of entrepreneurial ecosystems, this dissertation studies how these firms contribute to various aspects of wellbeing. The results show that high-growth firms are a heterogeneous group and one can distinguish between different types of firms based on how they interact with their stakeholders. The studies in this dissertation show that the mechanisms in the entrepreneurial ecosystem are complex and multifaceted. There is not one type of entrepreneurial ecosystem and what works well in one region may not be successful in another. To develop an entrepreneurial ecosystem one thus needs to combine knowledge of the specific region with an understanding of the general characteristics of an ecosystem, such as the strong interdependency between elements. The output of the entrepreneurial ecosystem, productive entrepreneurship, also showcases strong diversity. While all of these new firms contribute to economic growth, their impact on societal wellbeing is more diverse. If the goal is to strengthen societal wellbeing it is therefore important to distinguish between firms based on their wellbeing impact. The entrepreneurial ecosystem could then be shaped to support the firms that contribute the most to societal wellbeing.