Economies (Nov 2021)
Unveiling Entrepreneurial Ecosystems’ Transformation: A GEM Based Portrait
Abstract
Entrepreneurial Ecosystems (EEs) have attracted the attention of academics, practitioners, and policymakers, that attempt to unlock ‘a winning recipe’ considering the different EEs pillars in order to ignite entrepreneurship at large. Therefore, understanding the degree of influence of each pillar on Entrepreneurial Initiative (EI) is helpful in framing more effective policies towards entrepreneurship. This study aims to bring a new facet to entrepreneurship research, specifically on decomposing the transformation of EEs and the influence of EEs pillars on EI. The transformation of EEs is shown by a balanced panel approach based on the Global Entrepreneurship Monitor (GEM) dataset over 8 years (2010–2017), comprising 18 countries. The study has several implications for entrepreneurship theory and practice as well as public policy since discusses three main issues, mainly supported by empirical results. First, the results show an unbalanced influence of EEs pillars on EI. Second, results also show the ineffectiveness of institutions in encouraging the desire to act entrepreneurially. Third, entrepreneurship needs to be part of the acculturation process evidencing the importance of collective normative. Therefore, providing the instruments and structures is not enough to encourage individuals to start an entrepreneurial journey. Generally, the results reveal that contextual determinants are significant in fostering entrepreneurial propensity to start a business. But the impact of the nine pillars is not equalized, revealing a fragmented influence with funding measures, R&D transfer, and cultural and social norms discouraging entrepreneurial initiative. Overall, the study contributes to the understanding of a multidimensional perspective on EEs and points future policy directions to overcome the lack of entrepreneurship and amend flawed entrepreneurship policies.
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