Unpacking Entrepreneurial Ecosystem Elements: Insights Into Drivers of Entrepreneurial Activity

Abstract

Thriving entrepreneurial ecosystems (EEs) are instrumental in new enterprise creation and growth, as they provide vital support for entrepreneurial activity. However, as this support may be context-specific, the existing literature has yet to capture the contextual factors that shape the contributions of EEs. To address this inertia, a fuzzy analytical hierarchy process (FAHP) is employed, which examines the influence of ecosystem factors on new venture development in two key MENA countries, namely Algeria and Saudi Arabia. The findings indicate that physical, commercial, and legal infrastructure are important factors for EEs in both countries. Nevertheless, there are intriguing differences in the relative importance of other factors. The salient implications of the results are discussed.