Socio-cultural barriers to developing a regional entrepreneurial ecosystem

Abstract

Purpose The purpose of this paper is to provide a contextual analysis that helps explain how socio-cultural factors are negatively impacting the evolution of the entrepreneurial ecosystem in a struggling regional economy. Design/methodology/approach A case study method is used to provide a detailed contextual analysis triangulating primary and secondary data. Findings This paper provides insight into a region impeded from embracing the benefits of innovation-driven entrepreneurship in fostering economic development. The authors show that socio-cultural factors may be inhibiting the region from having a functional entrepreneurial ecosystem that can support innovation. Specific aspects of culture and social capital weaknesses are identified and insight into the potential causes of these impediments were offered. As well, the paper shows how the fundamental nature of culture may be affecting other elements of the entrepreneurial ecosystem from maturing. Originality/value This paper adds to a small, but growing, body of literature that is illustrating the evolutionary nature of entrepreneurial ecosystems and the significant impact of socio-cultural attributes to that evolution. This paper responds to calls to investigate contexts in which innovation does not thrive and where economic challenges prevail. The value of this research paper is to provide conceptual contributions in a contextual analysis from which other researchers can draw comparisons, insights and inspiration for similar approaches. Despite the abundance of research discussing the importance of culture, there are very few actual case studies showing concrete examples of culture and its influence on a region’s entrepreneurial ecosystem.

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“…In this situation, it is important that the interim financial result -profit margin, reaches a positive value, which is a prerequisite, since sales revenue should exceed the total variable costs of its production, which usually include elements such as material, costs on wages of production workers and social contributions, energy costs for production processes, etc. (Walsh and Winsor 2019). an important step in the analysis of operating performance is the study of the influence of various factors on the value of profit margin (P MARG ) and the level of marginal profitability (ROS MARG ).…”

Economic and Socio-Cultural Drivers of Necessity and Opportunity Entrepreneurship Depending on the Business Cycle Phase

“…For a correct design of policies aimed at promoting entrepreneurship, it is important to identify which factors affect their activity and how they do so. In addition to the economic factors, it is important to consider those social and cultural factors that are increasingly becoming more and more important in the design of policies (Thornton et al, 2011;Pandit et al, 2018;Walsh & Winsor, 2019). At the same time, it is fundamental to consider if the entrepreneur is moved by necessity or by opportunity, and the impact of business cycle (Fairlie & Fossen, 2018).…”

Introduction to womens entrepreneurship and culture: socio-cultural dynamics, role-influenced behaviors and constraint negotiation

“…At the deepest level, basic and invisible assumptions are taken for granted (Leung et al, 2005). Culture may also be considered as the "underlying system of values peculiar to a specific group or society" (Pinillos and Reyes, 2011, p. 25) and is one of six elements of an entrepreneurship ecosystem, besides finance, support systems, human capital, markets and policy (Walsh and Winsor, 2019). Culture operates at the organizational and at the small group (team) levels.…”