It takes all kinds: understanding diverse entrepreneurial ecosystems

This paper aims to explore the dynamics of entrepreneurial ecosystems with both rural and urban features, as well as the varied system requirements of differing types of entrepreneurs within such an ecosystem.

Using a mixed-methods case study approach, the study examined the Roanoke–Blacksburg region in western Virginia. Researchers conducted quantitative analysis of entrepreneurial metrics and network relationships, as well as qualitative analysis of data collected through entrepreneur surveys and stakeholder interviews.

Findings suggest entrepreneurs of different types faced disparate challenges and uneven access to resources and networks. Innovation-driven “gazelle” enterprises (IDEs) had numerous growth-related resource needs, including angel, venture and scale-up funding; prototyping equipment and facilities; and translational research by local universities. Small- and medium-sized enterprises (SMEs) required more entrepreneurial education programming, subsidized main street office space and clearer pathways through the government regulatory system. A key finding was also concerned with the different ways by which IDEs and SMEs accessed key resources within the ecosystem, illustrated through social network analysis, and supported through qualitative feedback.

Study findings were limited by a relatively low survey response rate from some entrepreneur demographic segments, particularly minorities.

The study represents an in-depth, multi-methods approach that offers insight into two under-researched areas in the ecosystem literature: the dynamics of urban – rural ecosystems and the varied system requirements of different entrepreneur types. The paper includes three overarching recommendations for policy and practice: improved collection and sharing of regional metrics; differentiated approaches to entrepreneurial support based on entrepreneur type; and enhanced efforts to advance inclusive entrepreneurship.