We critically examine how an entrepreneurial ecosystem is structured using an exploratory and bottom-up approach. Past studies in this area have discussed the presence of elements in the system or captured the ecosystem as holistically as possible by extending to social, cultural, and institutional dimension. However, we find that such aggregated conceptualizations gave limited understanding to how different elements are connected and constitute the system. Here, we apply a social network approach by analyzing the connections of the ecosystem at multiple layers: (1) among entrepreneurs, (2) among support organizations, and (3) between and among entrepreneurs and key support organizations. Through a series of interviews with entrepreneurs and support organizations in St. Louis, we find that the ways in which support organizations in this region interacted with each other and with entrepreneurs, including explicit cross-organizational collaboration and strategic structuring of resources, significantly impacted the way that entrepreneurs interacted with one another and with organizations, thus deepening our understanding of these connections and identifying intervening points within the ecosystem.
26 May 2016 in Entrepreneurship & Regional Development
Government sponsorship of entrepreneurship has become a popular policy tool in the last 15 years. Despite this popularity, past academic studies have largely focused on firm-level survival rates and treated the effects of government sponsorship in isolation, which fails to capture the full effect of the sponsorship. That is, the objectives of the public sector include enhancing the macro-level entrepreneurial environment of the region as well as the success of individual firms. We expand research in this area through a case study in St. Louis, Missouri. We focus on the Arch Grants, a public–private coalition that provides $50,000 to 20 winners through their annual competition. Based on interviews of 46 recipient firms and 15 support organizations, we first demonstrate how government sponsorship can create a cohort of entrepreneurs who are able to learn from each other about business strategy, local mentors and other resources. Second, we uncover the process through which sponsorship can facilitate coordination among local entrepreneurship support organizations. Thus, we conclude that the evaluation of government sponsorship should go beyond the traditional firm-level performance measurement and consider the integration and enhancement of the local entrepreneurship ecosystem.
Knowledge about connections within a local economic system holds implication for understanding the ways in which individuals and categories of entrepreneurs access the system itself and resources provided within. While scholars have recently found complex divisions of networks within local entrepreneurship ecosystems, we still have a limited understanding about why these chasms exist. We present a case study with qualitative research in the entrepreneurial ecosystem of St. Louis, Missouri, which identifies structural sources of divergence in networks. Specifically, we find a gender gap in the ecosystem that reveals patterns of difference in access to resources and in the experiences of women relative to men entrepreneurs. Thus, we contribute a more nuanced understanding of how discrete elements within a system’s networks diverge, as well as identifying the root causes of this divergence. The article concludes with implications for theories and practice.
Over the last decades, the economic development and, in particular, entrepreneurial dynamics in small and medium-sized towns (SMSTs) have mostly gone unnoticed (Bell and Jayne 2009; Lorentzen and v...