Self-sufficiency and non-restrictive policies needed to ensure well-functioning entrepreneurial ecosystem
Policies should not be restrictive, just regulative, and they should allow and sustain the free movement of resources and capital, which was severely hampered by the coronavirus pandemic. Also, it is vital to build a community where entrepreneurship is prioritised and supported.
These are some of the key elements of a functioning entrepreneurial ecosystem (EE), says Hannes Velt, Doctor of Science, who recently defended his dissertation in the field of International Business and Entrepreneurship at the LUT School of Business and Management.
An entrepreneurial ecosystem (EE) covers areas such as international business, strategic management, economic geography and entrepreneurship. Velt says an EE can explain how regional systems influence productive entrepreneurial activities and global value creation.
What are the focus points relevant in facilitating a healthy entrepreneurial ecosystem?
"In my opinion, the primary intention should be to facilitate efficiency and self-sufficiency. To initiate appropriate policies requires considering the strategic objectives and goals of the local EE and what these policies are intended to achieve. Policies should be in place to make the system dynamic and open enough to enable the transmission of endowments and co-evolution. Otherwise this system would be unable to renew itself and stakeholders would depart", Velt argues.
A founder's roadmap for start-up entrepreneurs
In his thesis, Entrepreneurial Ecosystems and Born Globals Start-ups, Velt explores the interrelations and dynamics of ecosystem elements and their influence on born global (BG) start-ups. He examines these start-ups in their preliminary life-cycle stages of development when internationalisation commences. Velt has also compared Estonian and Finnish BG start-ups and their ecosystem elements.
Velt has derived findings to help novice and more experienced founders and managers to gain insights to better associate and align core activities, strategies and business models to fit with surrounding EEs in a local ecosystem or another more suitable one.
His dissertation represents one of the first exploratory steps in linking the EE and BG internationalisation by outlining and extending the EE construct, its strengths and weaknesses, and the performance of its elements in catering to the needs of ventures.
"This research presents valuable insights for all interested parties by outlining its results in a reflective format which start-up entrepreneurs could consider as a founder's roadmap".
Velt's doctoral dissertation Entrepreneurial Ecosystems and Born Globals Start-ups was approved on 11 December 2020.
Doctor of Science Hannes Velt