The Role of Entrepreneurial Ecosystems in Driving Regional Economic Development

Abstract

Entrepreneurial ecosystems (EEs) have gained prominence in understanding how regions facilitate innovation, stimulate entrepreneurship, and drive economic growth. With increasing reliance on knowledge-based and innovation-driven activities to enhance competitiveness, interconnected actors such as entrepreneurs, universities, investors, policymakers, incubators, accelerators, and support organizations have become central to economic outcomes. This paper critically analyses the mechanisms through which entrepreneurial ecosystems influence regional economic development, drawing on multidisciplinary insights from strategy, economic geography, entrepreneurship, and public policy. It demonstrates how ecosystem dynamics, institutional structures, network configurations, cultural norms, and resource flows shape entrepreneurial activity and determine regional economic trajectories. The paper proposes a conceptual model illustrating the interaction among ecosystem components in generating entrepreneurial vibrancy, structural transformation, and inclusive development. The study contributes theoretically by integrating diverse strands of knowledge and practically by offering policy recommendations aimed at enhancing regional competitiveness.