IDEAS home Printed from https://ideas.repec.org/a/spr/ijogbc/v17y2022i1d10.1007_s42943-022-00050-2.html
   My bibliography  Save this article

Financial Entrepreneurial Ecosystems: An Analysis of Urban and Rural Regions of Norway

Author

Listed:
  • Tore Frimanslund

    (Western Norway University for Applied Sciences)

Abstract

Based on the entrepreneurial ecosystem (EE) perspective, this paper examines the role of finance and interrelated value-adding activities in ecosystems. The study employs a multiple-case design and interviews with 11 rural and urban innovative start-ups and stakeholders in the Norwegian market for entrepreneurial financing. The analysis disentangles the term recycling of entrepreneurial resources in ecosystems, explained here as a self-enhancing cycle of finance under certain conditions that allows enhancement of the ecosystem and members. The aim is to explain these mechanisms in business-level ecosystems, why they are important, and how they are new to entrepreneurship theories. The study argues that the robustness of ecosystems is characterised by the extent of such activities and how they affect entrepreneurial and regional growth. Bottom-up ecosystems can be spatially scattered and enable start-ups in disadvantageous localities to harvest critical resources from more advantageous places. This study provides a theoretical extension of EEs.

Suggested Citation

  • Tore Frimanslund, 2022. "Financial Entrepreneurial Ecosystems: An Analysis of Urban and Rural Regions of Norway," International Journal of Global Business and Competitiveness, Springer, vol. 17(1), pages 24-39, June.
    • Handle: RePEc:spr:ijogbc:v:17:y:2022:i:1:d:10.1007_s42943-022-00050-2
    DOI: 10.1007/s42943-022-00050-2
    as

    Download full text from publisher

    File URL: http://link.springer.com/10.1007/s42943-022-00050-2
    File Function: Abstract
    Download Restriction: Access to the full text of the articles in this series is restricted.
    File URL: https://libkey.io/10.1007/s42943-022-00050-2?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Lerner, Josh & Schoar, Antoinette & Sokolinski, Stanislav & Wilson, Karen, 2018. "The globalization of angel investments: Evidence across countries," Journal of Financial Economics, Elsevier, vol. 127(1), pages 1-20.
    2. Ramana Nanda & William R. Kerr, 2015. "Financing Innovation," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 445-462, December.
    3. Casey, Eddie & O'Toole, Conor M., 2014. "Bank lending constraints, trade credit and alternative financing during the financial crisis: Evidence from European SMEs," Journal of Corporate Finance, Elsevier, vol. 27(C), pages 173-193.
    4. Alperovych, Yan & Hübner, Georges & Lobet, Fabrice, 2015. "How does governmental versus private venture capital backing affect a firm's efficiency? Evidence from Belgium," Journal of Business Venturing, Elsevier, vol. 30(4), pages 508-525.
    5. Elinor Ostrom, 2010. "Beyond Markets and States: Polycentric Governance of Complex Economic Systems," American Economic Review, American Economic Association, vol. 100(3), pages 641-672, June.
    6. Spilling, Olav R., 1996. "The entrepreneurial system: On entrepreneurship in the context of a mega-event," Journal of Business Research, Elsevier, vol. 36(1), pages 91-103, May.
    7. Erik Stam, 2015. "Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1759-1769, September.
    8. Ben Spigel, 2017. "The Relational Organization of Entrepreneurial Ecosystems," Entrepreneurship Theory and Practice, , vol. 41(1), pages 49-72, January.
    9. Klapper, Leora & Laeven, Luc & Rajan, Raghuram, 2006. "Entry regulation as a barrier to entrepreneurship," Journal of Financial Economics, Elsevier, vol. 82(3), pages 591-629, December.
    10. Cooke, Philip & Gomez Uranga, Mikel & Etxebarria, Goio, 1997. "Regional innovation systems: Institutional and organisational dimensions," Research Policy, Elsevier, vol. 26(4-5), pages 475-491, December.
    11. Arne Isaksen & Roman Martin & Michaela Trippl (ed.), 2018. "New Avenues for Regional Innovation Systems - Theoretical Advances, Empirical Cases and Policy Lessons," Springer Books, Springer, number 978-3-319-71661-9, July.
    12. Lee, Neil & Sameen, Hiba & Cowling, Marc, 2015. "Access to finance for innovative SMEs since the financial crisis," Research Policy, Elsevier, vol. 44(2), pages 370-380.
    13. 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.
    14. Ash Amin, 1999. "An Institutionalist Perspective on Regional Economic Development," International Journal of Urban and Regional Research, Wiley Blackwell, vol. 23(2), pages 365-378, June.
    15. Verena Radinger-Peer & Sabine Sedlacek & Harvey Goldstein, 2018. "The path-dependent evolution of the entrepreneurial ecosystem (EE) – dynamics and region-specific assets of the case of Vienna (Austria)," European Planning Studies, Taylor & Francis Journals, vol. 26(8), pages 1499-1518, August.
    16. Peter Egger & Christian Keuschnigg, 2015. "Innovation, Trade, and Finance," American Economic Journal: Microeconomics, American Economic Association, vol. 7(2), pages 121-157, May.
    17. repec:zbw:bofrdp:urn:nbn:fi:bof-201512141480 is not listed on IDEAS
    18. James S. Ang, 1992. "On the Theory of Finance for Privately Held Firms," Journal of Entrepreneurial Finance, Pepperdine University, Graziadio School of Business and Management, vol. 1(3), pages 185-203, Spring.
    19. Duranton, Gilles & Puga, Diego, 2004. "Micro-foundations of urban agglomeration economies," Handbook of Regional and Urban Economics, in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 48, pages 2063-2117, Elsevier.
    20. Zoltan J. Acs & Attila Varga, 2008. "Entrepreneurship, Agglomeration and Technological Change," Chapters, in: Entrepreneurship, Growth and Public Policy, chapter 24, pages 341-352, Edward Elgar Publishing.
    21. Myers, Stewart C., 1984. "Capital structure puzzle," Working papers 1548-84., Massachusetts Institute of Technology (MIT), Sloan School of Management.
    22. Myers, Stewart C, 1984. "The Capital Structure Puzzle," Journal of Finance, American Finance Association, vol. 39(3), pages 575-592, July.
    23. Ramana Nanda & William R. Kerr, 2015. "Financing Innovation," Annual Review of Financial Economics, Annual Reviews, vol. 7(1), pages 445-462, December.
    24. Stewart C. Myers, 1984. "Capital Structure Puzzle," NBER Working Papers 1393, National Bureau of Economic Research, Inc.
    25. Zacharakis, Andrew L. & Shepherd, Dean A. & Coombs, Joseph E., 2003. "The development of venture-capital-backed internet companies: An ecosystem perspective," Journal of Business Venturing, Elsevier, vol. 18(2), pages 217-231, March.
    26. Denis, David J., 2004. "Entrepreneurial finance: an overview of the issues and evidence," Journal of Corporate Finance, Elsevier, vol. 10(2), pages 301-326, March.
    27. Kirankumar S. Momaya, 2019. "The Past and the Future of Competitiveness Research: A Review in an Emerging Context of Innovation and EMNEs," International Journal of Global Business and Competitiveness, Springer, vol. 14(1), pages 1-10, December.
    28. Nathan, Max, 2022. "Does light touch cluster policy work? Evaluating the tech city programme," Research Policy, Elsevier, vol. 51(9).
    29. Eric Liguori & Josh Bendickson & Shelby Solomon & William C. McDowell, 2019. "Development of a multi-dimensional measure for assessing entrepreneurial ecosystems," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 31(1-2), pages 7-21, January.
    30. Michael Peneder, 2009. "The impact of venture capital on innovation behaviour and firm growth," Venture Capital, Taylor & Francis Journals, vol. 12(2), pages 83-107, November.
    31. Van De Ven, H., 1993. "The development of an infrastructure for entrepreneurship," Journal of Business Venturing, Elsevier, vol. 8(3), pages 211-230, May.
    32. Zoltan J. Acs & Erik Stam & David B. Audretsch & Allan O’Connor, 2017. "The lineages of the entrepreneurial ecosystem approach," Small Business Economics, Springer, vol. 49(1), pages 1-10, June.
    33. Jensen, Michael C. & Meckling, William H., 1976. "Theory of the firm: Managerial behavior, agency costs and ownership structure," Journal of Financial Economics, Elsevier, vol. 3(4), pages 305-360, October.
    34. repec:zbw:bofrdp:2015_028 is not listed on IDEAS
    35. repec:bla:jfinan:v:59:y:2004:i:4:p:1805-1844 is not listed on IDEAS
    36. Cassar, Gavin, 2004. "The financing of business start-ups," Journal of Business Venturing, Elsevier, vol. 19(2), pages 261-283, March.
    37. Guerini, Massimiliano & Quas, Anita, 2016. "Governmental venture capital in Europe: Screening and certification," Journal of Business Venturing, Elsevier, vol. 31(2), pages 175-195.
    38. repec:bof:bofrdp:urn:nbn:fi:bof-201512141480 is not listed on IDEAS
    39. Leleux, Benoit & Surlemont, Bernard, 2003. "Public versus private venture capital: seeding or crowding out? A pan-European analysis," Journal of Business Venturing, Elsevier, vol. 18(1), pages 81-104, January.
    40. Ron Boschma, 2005. "Proximity and Innovation: A Critical Assessment," Regional Studies, Taylor & Francis Journals, vol. 39(1), pages 61-74.
    41. Gordon Murray, 1999. "Early-stage venture capital funds, scale economies and public support," Venture Capital, Taylor & Francis Journals, vol. 1(4), pages 351-384, October.
    42. Erik Stam, 2018. "Measuring Entrepreneurial Ecosystems," International Studies in Entrepreneurship, in: Allan O'Connor & Erik Stam & Fiona Sussan & David B. Audretsch (ed.), Entrepreneurial Ecosystems, pages 173-197, Springer.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Sivert Hammer & Tore Frimanslund, 2022. "Lessons from a rural ecosystem," Local Economy, London South Bank University, vol. 37(5), pages 348-363, August.
    2. Fahimeh Khatami & Enrico Cagno & Luboš Smrčka & Zoltan Rozsa, 2024. "Assessing the role of FinTech in entrepreneurial ecosystems at the international level," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3373-3402, December.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    2. Valérie Revest & Alessandro Sapio, 2012. "Financing technology-based small firms in Europe: what do we know?," Small Business Economics, Springer, vol. 39(1), pages 179-205, July.
    3. Quoc Hoang Thai & Khuong Ngoc Mai & Tung Thanh Do, 2023. "An Evolution of Entrepreneurial Ecosystem Studies: A Systematic Literature Review and Future Research Agenda," SAGE Open, , vol. 13(1), pages 21582440231, March.
    4. Melita Nicotra & Marco Romano & Manlio Giudice & Carmela Elita Schillaci, 2018. "The causal relation between entrepreneurial ecosystem and productive entrepreneurship: a measurement framework," The Journal of Technology Transfer, Springer, vol. 43(3), pages 640-673, June.
    5. Francesco Aiello & Graziella Bonanno & Stefania P. S. Rossi, 2020. "How firms finance innovation. Further empirics from European SMEs," Metroeconomica, Wiley Blackwell, vol. 71(4), pages 689-714, November.
    6. Ana Venâncio & João Jorge, 2022. "The role of accelerator programmes on the capital structure of start-ups," Small Business Economics, Springer, vol. 59(3), pages 1143-1167, October.
    7. Mirella Schrijvers & Niels Bosma & Erik Stam, 2022. "Entrepreneurial Ecosystems and Structural Change in European Regions," Working Papers 2202, Utrecht School of Economics.
    8. Fahimeh Khatami & Enrico Cagno & Luboš Smrčka & Zoltan Rozsa, 2024. "Assessing the role of FinTech in entrepreneurial ecosystems at the international level," International Entrepreneurship and Management Journal, Springer, vol. 20(4), pages 3373-3402, December.
    9. Alessandra Colombelli & Emilio Paolucci & Elisabetta Raguseo & Gianluca Elia, 2024. "The creation of digital innovative start-ups: the role of digital knowledge spillovers and digital skill endowment," Small Business Economics, Springer, vol. 62(3), pages 917-937, March.
    10. Mateev, Miroslav & Poutziouris, Panikkos & Ivanov, Konstantin, 2013. "On the determinants of SME capital structure in Central and Eastern Europe: A dynamic panel analysis," Research in International Business and Finance, Elsevier, vol. 27(1), pages 28-51.
    11. Erik Stam & Andrew Ven, 2021. "Entrepreneurial ecosystem elements," Small Business Economics, Springer, vol. 56(2), pages 809-832, February.
    12. Wellalage, Nirosha Hewa & Locke, Stuart, 2020. "Formal credit and innovation: Is there a uniform relationship across types of innovation?," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 1-15.
    13. Jianhong Zhang & Désirée Gorp & Henk Kievit, 2023. "Digital technology and national entrepreneurship: An ecosystem perspective," The Journal of Technology Transfer, Springer, vol. 48(3), pages 1077-1105, June.
    14. Sardo, Filipe & Serrasqueiro, Zélia & Armada, Manuel Rocha, 2022. "The importance of owner loans for rebalancing the capital structure of small knowledge-intensive service firms," Research in International Business and Finance, Elsevier, vol. 61(C).
    15. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    16. Alessandra Colombelli & Emilio Paolucci & Elisa Ughetto, 2019. "Hierarchical and relational governance and the life cycle of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 52(2), pages 505-521, February.
    17. Diana Hechavarría & Charles Matthews & Paul Reynolds, 2016. "Does start-up financing influence start-up speed? Evidence from the panel study of entrepreneurial dynamics," Small Business Economics, Springer, vol. 46(1), pages 137-167, January.
    18. Chaudhary, Sanjay & Kaur, Puneet & Ferraris, Alberto & Bresciani, Stefano & Dhir, Amandeep, 2024. "Connecting entrepreneurial ecosystem and innovation. Grasping at straws or hitting a home run?," Technovation, Elsevier, vol. 130(C).
    19. Fryges, Helmut & Kohn, Karsten & Ullrich, Katrin, 2011. "The Interdependence of R&D Activity and Debt Financing of Young Firms," IZA Discussion Papers 6217, Institute of Labor Economics (IZA).
    20. Colin Donaldson, 2021. "Culture in the entrepreneurial ecosystem: a conceptual framing," International Entrepreneurship and Management Journal, Springer, vol. 17(1), pages 289-319, March.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:ijogbc:v:17:y:2022:i:1:d:10.1007_s42943-022-00050-2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.