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Gimme shelter or fade away: the impact of regional entrepreneurial ecosystem quality on venture survival

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  • Siddharth Vedula
  • Phillip H Kim

Abstract

Our study addresses a popular question in entrepreneurship research—to what extent does the quality of a region’s entrepreneurial ecosystem matter for venture survival? To tackle this question, we created a regional entrepreneurial ecosystem quality index based on five key characteristics: supportive entrepreneurial culture, access to finance, availability of human capital, innovation capacity, and formal support organizations. We analyze 301 United States Metropolitan Statistical Areas for these characteristics and measure the aggregated contextual influence on venture survival within these regions over time. In addition to analyzing the relationship between this index and venture survival, we also consider the moderating role of founders’ experience on survival outcomes. Our findings confirm that, in general, higher quality ecosystems shelter ventures, while ventures in weaker ecosystems are more likely to fade away and fail. However, for serial entrepreneurs, we find that ecosystem quality has a much smaller impact on venture survival.

Suggested Citation

  • Siddharth Vedula & Phillip H Kim, 2019. "Gimme shelter or fade away: the impact of regional entrepreneurial ecosystem quality on venture survival," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 28(4), pages 827-854.
    • Handle: RePEc:oup:indcch:v:28:y:2019:i:4:p:827-854.
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    File URL: http://hdl.handle.net/10.1093/icc/dtz032
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    More about this item

    JEL classification:

    • M12 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - Personnel Management; Executives; Executive Compensation
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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