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This paper aims to identify the interrelationships of institutional factors that compose an entrepreneurial ecosystem (EE) in small towns that can potentially increase the attraction of franchises.

The authors analyzed 728 small towns with franchise chains that do not belong to metropolitan regions and are limited to populations of up to 50,000 inhabitants. Secondary data are obtained from the Brazilian Institute of Geography and Statistics. The data analysis technique used is Poisson regression.

A higher number of employed persons (H1), a higher savings (H2) and a higher number of educational institutions (H4) correlates with more franchise chains in small towns. The availability of institutional support (H3) does not correlate with the number of franchise chains. Regarding the interrelationships between factors, the interactive effect between two constructs is determined to cause a decrease in franchise chains, whereas interrelating three factors raises the number of franchise chains (R² = 72.3%).

The analysis identifies some environmental factors to be considered in market prospecting by franchise chains’ expansion managers. These factors constitute a relevant analytical model focused on the regional development of franchise chains.

Social contributions are directed to public policy professionals responsible for regional economic development, as emerging markets demand actions to encourage job creation when confronted with high unemployment rates and dependence on the informal economy.

The contribution of this paper is bringing EE to the debate of the institutional environment’s impact on new businesses. EE adds to the debate examining the interrelationships between different institutional factors. An EE not only identifies the factors, but also examines the interdependence of these factors, which can potentially explain the attraction of franchise chains in small towns.

Entrepreneurial marketing (EM) literature has evolved recently, but more understanding is needed on how the seven dimensions of EM impact causal and effectual entrepreneurial behavior and, similarly, how entrepreneurial behavior influences the results of all dimensions of the EM construct. This study investigates the association and mutual influence between EM and entrepreneurship.

This study uses a qualitative strategy, addressing gaps due to its low incidence and employs theoretical replication, which is practically unexplored. It investigates two cases in Brazil: small companies (eight cases selected by literal replication) and a structured network of companies (one case selected by theoretical replication), predicting a positive influence of EM in the first case and a negative or neutral influence in the second.

The influence of EM on entrepreneurship is context-dependent and varies according to the empirical object. In turn, the impact of entrepreneurship on the results of the EM dimensions is more stable, primarily causal and varies slightly between structures.

First, by studying how the dimensions of EM impact causal/effectual behavior, this study broadens the understanding of the area, which was previously focused on only a few dimensions. Second, by investigating the impact of entrepreneurship on EM outcomes, this study sheds light on the influence of and differences in causal/effectual behavior in each of the seven dimensions. Finally, it extends the understanding of EM and entrepreneurship in small businesses and a structured network by identifying similarities and distinctions hitherto unexplored.