Beyond start-up formation: Effects of entrepreneurial ecosystem support activities for developing lagging regions

Franz Flögel, Marina Letonja, Kerstin Meyer, Maria Rabadjieva, Zineta Vilman, Ralitsa Zhekova, Mariya Zlateva and Anna Butzin

Local Economy, 2024, vol. 39, issue 3-4, 127-146

Abstract: The paper elaborates on the positive effects of support activities for entrepreneurial ecosystems (EEs) on regional development in lagging regions beyond the obvious outcome of new enterprises. The emphasis on entrepreneurship support organisations to develop lively EE in lagging regions has been criticised for its limited success, high costs and low benefits for local citizens. We agree with this criticism in principle but argue that a meaningful evaluation of entrepreneurship support’s effects on regional development must also consider the wider impact of such promotion. Based on a literature review and empirical findings from our engagement in three EEs, we discuss such regional-level ‘outward causation’ and identify five broader effects how entrepreneurship support organisations strengthen development. They (1) promote innovative regional organisations, institutions and actors; (2) qualify and engage aspiring founders who later become qualified and motivated employees for incumbent companies and the public sector; (3) contribute to a positive regional image and identity; (4) enhance inter-sector and inter-municipality cooperation and (5) position start-ups as a positive impulse for developing declining cities. In conclusion, we propose an extended understanding of start-up support for developing lagging regions that considers entrepreneurship support organisations as catalysts of the positive effects associated with vibrant ecosystems.

Keywords: entrepreneurial ecosystems (EEs); entrepreneurship support organisations (ESO); low-innovator and lagging regions; outward causation; regional development policies; start-ups (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://journals.sagepub.com/doi/10.1177/02690942241311805 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:sae:loceco:v:39:y:2024:i:3-4:p:127-146

DOI: 10.1177/02690942241311805

Access Statistics for this article

More articles in Local Economy from London South Bank University
Bibliographic data for series maintained by SAGE Publications ().