Beyond start-up formation: Effects of entrepreneurial ecosystem support activities for developing lagging regions

The paper elaborates on the positive effects of support activities for entrepreneurial ecosystems (EEs) on regional development in lagging regions beyond the obvious outcome of new enterprises. The emphasis on entrepreneurship support organisations to develop lively EE in lagging regions has been criticised for its limited success, high costs and low benefits for local citizens. We agree with this criticism in principle but argue that a meaningful evaluation of entrepreneurship support’s effects on regional development must also consider the wider impact of such promotion. Based on a literature review and empirical findings from our engagement in three EEs, we discuss such regional-level ‘outward causation’ and identify five broader effects how entrepreneurship support organisations strengthen development. They (1) promote innovative regional organisations, institutions and actors; (2) qualify and engage aspiring founders who later become qualified and motivated employees for incumbent companies and the public sector; (3) contribute to a positive regional image and identity; (4) enhance inter-sector and inter-municipality cooperation and (5) position start-ups as a positive impulse for developing declining cities. In conclusion, we propose an extended understanding of start-up support for developing lagging regions that considers entrepreneurship support organisations as catalysts of the positive effects associated with vibrant ecosystems.