Is a balanced entrepreneurial ecosystem essential for success? A configurational analysis of European regional entrepreneurial ecosystems

Abstract

This study challenges the assumption that well-balanced and bottleneck-free entrepreneurial ecosystems (EEs) are the sole drivers of high regional economic performance. Using a comprehensive dataset covering 125 regions across 24 European countries, we find that high regional economic performance does not universally necessitate the presence of every ecosystem component. Rather, contextual nuances across European macro-regions show that both balanced and unbalanced ecosystems can lead to significant economic success, emphasizing the importance of recognizing uniqueness. Our research contributes to the EE literature by integrating individual and institutional factors through the REDI conceptual model. The nuanced macro-regional analysis underscores the need for region-specific assessments. We conclude that policy efforts should focus on acknowledging and leveraging the uniqueness of regional ecosystems rather than striving for a one-size-fits-all approach to enhance economic performance.