Entrepreneurial ecosystem patterns and its determinants and outputs: a necessary condition analysis to the Brazilian entrepreneurial cities

Abstract

Purpose

This study aims to identify necessary conditions for innovative entrepreneurship in cities and determine similarities in entrepreneurial configurations among them.

Design/methodology/approach

The authors assessed the necessary conditions for various levels of entrepreneurial output and categorized cities based on similar patterns by applying necessary condition analysis (NCA) and cluster analysis in a sample comprised of 101 cities from the entrepreneurial cities index, representing a diverse range of urban environments in Brazil. A comprehensive data set, including both traditional indicators from official Bureau of statistics and nontraditional indicators from new platforms of science, technology and innovation intelligence, was compiled for analysis.

Findings

Bureaucratic complexity, urban conditions, transport infrastructure, economic development, access to financial capital, secondary education, entrepreneurial intention, support organizations and innovation inputs were identified as necessary for innovative entrepreneurship. Varying levels of these conditions were found to be required for different entrepreneurial outputs.

Research limitations/implications

The static nature of the data limits understanding of dynamic interactions among dimensions and their impact on entrepreneurial city performance.

Practical implications

Policymakers can use the findings to craft tailored support policies, leveraging the relationship between city-level taxonomy and direct outputs of innovative entrepreneurial ecosystems (EEs).

Social implications

The taxonomy and nontraditional indicators sheds light on the broader societal benefits of vibrant EEs, emphasizing their role in driving socioeconomic development.

Originality/value

The cluster analysis combined with NCA’s bottleneck analysis is an original endeavor which made it possible to identify performance benchmarks for Brazilian cities, according to common characteristics, as well as the required levels of each condition by each city group to achieve innovative entrepreneurial outputs.

Citation

Inacio Junior, E., Dionisio, E.A. and Gimenez, F.A.P. (2024), "Entrepreneurial ecosystem patterns and its determinants and outputs: a necessary condition analysis to the Brazilian entrepreneurial cities", Journal of Entrepreneurship in Emerging Economies, Vol. ahead-of-print No. ahead-of-print. https://doi.org/10.1108/JEEE-07-2023-0316