Entrepreneurial ecosystem elements Stam, Erik; van de Ven, Andrew
Small business economics,
02/2021, Volume:
56, Issue:
2
Journal Article
Peer reviewed
Open access
There is a growing interest in ecosystems as an approach for understanding the context of entrepreneurship at the macro level of an organizational community. It consists of all the interdependent ...actors and factors that enable and constrain entrepreneurship within a particular territory. Although growing in popularity, the entrepreneurial ecosystem concept remains loosely defined and measured. This paper shows the value of taking a systems view of the context of entrepreneurship: understanding entrepreneurial economies from a systems perspective. We use a systems framework for studying entrepreneurial ecosystems, develop a measurement instrument of its elements, and use this to compose an entrepreneurial ecosystem index to examine the quality of entrepreneurial ecosystems in the Netherlands. We find that the prevalence of high-growth firms in a region is strongly related to the quality of its entrepreneurial ecosystem. Strong interrelationships among the ecosystem elements reveal their interdependence and need for a systems perspective.
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CEKLJ, EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
Scale-ups, or scaling firms, provide an important contribution to the economy. However, there is little understanding of the characteristics of their scaling strategies, compared to the high-growth ...strategies of start-ups and mature firms. To address this, we build on the Penrosean view of firm growth and the literature on high-growth firms to identify the critical growth-enabling activities of scaling firms with digital business models: financing, innovation, digitization, and acquisitions. Using cluster analysis of a sample of 184 Unicorn and emerging Unicorn scale-ups with digital business models, we identify four distinct activity configurations, or scale-up modes: network growers, focused scalers, organic innovators, and constricted scalers. We discuss the theoretical implications for the literature on scaling firms, Penrose's theory of firm growth in the digitization era, and firm growth research more generally.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
This article explores the association between persistence of high-growth and crucial dimensions of firm structure and performance (productivity, profits, investment patterns, innovation, and ...financial structures) to shed light on what makes a persistent high-growth firm. We employ a multidimensional definition of a high-growth firm that simultaneously accounts for growth of sales and employment, and design an empirical strategy that seeks to capture the “long-run” ability of high-growth firms to replicate their high-growth performance over time. Exploiting a large panel covering the period of the China’s miracle, we find that none of the considered firm attributes stands out as distinctive feature of persistent highgrowth. This finding casts doubts on the long-run contribution of high-growth firms, in turn challenging the long-run effectiveness of policies supporting the creation and expansion of such firms.
•We propose a new evaluative approach that draws on sociology of place to delineate local entrepreneurial ecosystems as configural narratives.•We implement the new approach using configurational ...comparative methods.•Analysis reveals a complex picture with three distinct types of local entrepreneurial ecosystems: Active self-propelled, Indulged and Passive self-absorbed.•We expand theory on the socio-spatial mechanisms through which ecosystems enable and influence new firms.
This paper develops and applies a new evaluative approach to local entrepreneuriale cosystems, as configural narratives. We examine how configurations of local entrepreneurial ecosystem attributes, as evaluated by local experts, support or hinder the emergence of new and innovative firms. Drawing on sociology of place, we present a novel configurational comparative analysis of local experts' evaluation of their ecosystems in Chile. Our proposed approach to entrepreneurial ecosystems helps us uncover two counterintuitive findings and so elaborateon interferences that have not yet been addressed through conventional concepts, methods and data. First, we reveal three distinct ecosystem types explaining different local levels of new firm activity: Active self-propelled, Indulged and Passive self-absorbed. The internal composition of these types change when only innovative and high growth firms are taken into consideration. Second, we show why, when seen as configural narratives, ecosystem attributes that have been assumed necessary play only a peripheral role. Our study demonstrates a split picture against seemingly similar outcomes and homogenous local contexts, contributing to the advancement of entrepreneurial ecosystem theory, observation and assessment.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UILJ, UL, UM, UPCLJ, UPUK, ZAGLJ, ZRSKP
Even as research on scaling and high growth firms (HFGs) is gaining momentum, the corpus of accumulated research remains largely fragmented and dispersed, with little in the way of a central ...conceptual foundation or ‘theoretical true north’ to guide empirical development. This Special Issue provides a forum for works that push the theoretical and empirical frontiers of research on scaling and HGFs. We provide a multi‐dimensional conceptualization that recognizes scaling as a dynamic capability entailing routines and processes for expansion, replication, and synchronization. We also present a typology that specifies the multiple types of HGFs. Inspired by the four studies published in the special issue, we finally outline five priorities for future research.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
Abstract Previous work has found that a small number of export s uperstars contribute disproportionally to the economy’s overall exports. Differently from export superstars , this study is the first ...to define high growth exporters (HGXs) (that are not export superstars ) as a new firm category. We provide their economic importance and depict their micro-level anatomy. By tracking HGXs in Croatia for over a quarter of a century, 44 out of 100 export superstars in 2019 were previously HGXs. HGXs represent only 0.5% of all firms and 18% of high growth firms (HGFs) in the economy, but are responsible for about 25% of new exports and 5% of new jobs. During their growth episode, HGXs hire more employees from technology intensive industries with previous experience in exporting. They often hire on a single year work contract, and more frequently send new employees to work abroad. HGX also increase their presence in more advanced markets, increase the number of new export products and decrease their reliance on the largest product or largest export market. We argue HGXs represent an under-researched category of firms.
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EMUNI, FIS, FZAB, GEOZS, GIS, IJS, IMTLJ, KILJ, KISLJ, MFDPS, NLZOH, NUK, OILJ, PNG, SAZU, SBCE, SBJE, SBMB, SBNM, UKNU, UL, UM, UPUK, VKSCE, ZAGLJ
The pace of business dynamism and entrepreneurship in the U.S. has declined over recent decades. We show that the character of that decline changed around 2000. Since 2000 the decline in dynamism and ...entrepreneurship has been accompanied by a decline in high-growth young firms. Prior research has shown that the sustained contribution of business startups to job creation stems from a relatively small fraction of high-growth young firms. The presence of these high-growth young firms contributes to a highly (positively) skewed firm growth rate distribution. In 1999, a firm at the 90th percentile of the employment growth rate distribution grew about 31 percent faster than the median firm. Moreover, the 90−50 differential was 16 percent larger than the 50−10 differential reflecting the positive skewness of the employment growth rate distribution. We show that the shape of the firm employment growth distribution changes substantially in the post-2000 period. By 2007, the 90−50 differential was only 4 percent larger than the 50−10, and it continued to exhibit a trend decline through 2011. The overall decline reflects a sharp drop in the 90th percentile of the growth rate distribution accounted for by the declining share of young firms and the declining propensity for young firms to be high-growth firms.
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GEOZS, IJS, IMTLJ, KILJ, KISLJ, NUK, OILJ, PNG, SAZU, SBCE, SBJE, UL, UM, UPCLJ, UPUK, ZRSKP
Do moderate-growth new firms have higher survival rates than fast-growing new firms? To address this question the customer bank records of 6578 new ventures are tracked over their first 10 years, and ...survival is measured either in terms of continued use of the bank account, or by entry into financial default. Simple bar charts show that it is the 7
th
or 8
th
decile of the growth distribution that has the highest survival chances. Although growth enhances survival on average, nevertheless the highest decile of the growth distribution never has the highest survival rates.
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BFBNIB, NUK, PILJ, SAZU, UL, UM, UPUK
This paper explores whether there is a balance or a trade‐off with respect to human resource (HR) practices that high‐growth firms (HGFs) are likely to use in adverse economic conditions. Drawing on ...the human capital theory, two major HR practices related to the educational level of employees and the use of formal employee training are examined as critical components of a cost‐efficient strategy, pursued by small and large HGFs in times of crisis. To this end, the empirical analysis uses data derived from an extensive two‐wave survey on 1500 Greek manufacturing and services firms at the peak of the Greek economic crisis. The results reveal two different patterns in the HR management: HGFs of larger size tend to employ persons with lower educational attainment and subsequently invest in formal training to increase their skills. On the contrary, smaller HGFs prefer to hire employees with specialized knowledge acquired from advanced formal education and avoid the provision of subsequent training. The study contributes to the literature by highlighting the way large and small HGFs manage the human capital embedded in their employees to outperform in crisis‐hit economies.
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BFBNIB, FZAB, GIS, IJS, KILJ, NLZOH, NUK, OILJ, SBCE, SBMB, UL, UM, UPUK
Knowledge created outside the firm, but within the same region, is a key enabler of high-growth firms. This paper develops an entrepreneurial ecosystems conceptual framework focussing on knowledge ...spillovers and regional absorptive capacity, to account for interregional differences in high-growth firm rates. This is tested using panel data from 378 regions in Great Britain. Knowledge creation (SME-engaging and research-intensive universities, innovative firms) and knowledge spillovers (primarily through vertically related industries) reveal to be of key importance. Other key regional enablers of high growth firms pertain to entrepreneurship culture, talent, intermediate services, networks, finance and demand growth.
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BFBNIB, FZAB, GIS, IJS, KILJ, NUK, OILJ, SAZU, SBCE, SBMB, UKNU, UL, UM, UPUK
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