Original title: Entrepreneurial ecosystem elements
An entrepreneurial ecosystemThe people and conditions in a place that enable or constrain entrepreneurship. is the mix of people and conditions in a place that can help or limit businesses. The researchers use a systems framework to measure the ecosystem’s elements and combine them into an indexA combined measure that summarizes several elements.. They apply it to regions in the Netherlands. Regions with higher-quality ecosystems tend to have more high-growth firmsBusinesses that grow rapidly., and the ecosystem elements are strongly connected to one another.
Imagine a town trying to help a neighborhood garden thrive. The soil, water, tools, and gardeners all matter, and a problem in one part can affect the rest. In this paper, those parts stand for the connected conditions that support or constrain businesses in a region, and the researchers build a combined measure of how well the whole system works.
People starting or growing businesses depend on more than their own decisions: the local community around them can help or hinder. Measuring that whole environment may help regions see how its different parts relate to business growth.
The abstract reports a relationship between ecosystem quality and the prevalence of high-growth firms, but does not establish that one causes the other. It describes the index's use in the Netherlands and does not state whether the findings apply to other countries or settings.
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Entrepreneurial ecosystem elements — Erik Stam, Andrew Van de Ven — Small Business Economics — doi:10.1007/s11187-019-00270-6
Abstract licence: CC BY
Explanation generated by Synthesis from the abstract — it is not the original paper.