Abstract
The primary aim of this chapter is to review the literature on entrepreneurial ecosystems, focusing on the activities of two key institutions: higher education institutions and business incubation centres (BICs). This chapter explores how best to manage the connection between business incubation centres and higher education institutions. It examines the activities of business incubation centres (BICs) as they relate to entrepreneurial universities and provides an overview of the key challenges associated with developing entrepreneurial universities. Findings are presented in the form of a conceptual framework that facilitates an improved understanding of the benefits of connecting the capabilities, activities, and outcomes associated with higher education and business incubation. The chapter offers a lens by which to consider the design of BICs as they relate to entrepreneurial universities and offers pathways to consider future research.
TopEntrepreneurial Ecosystems
There is no widely shared definition of an entrepreneurial ecosystem. The (relatively new) notion of an entrepreneurial ecosystem can be viewed as “the union of localized cultural networks, investment capital, universities, and active economic policies that create environments supportive of innovation-based ventures” (Spigel, 2017, p. 49). The key constructs in an entrepreneurial ecosystem are: the networks of entrepreneurs, leadership, finance, talent, knowledge and support services. The presence of these elements and the interaction between them predominantly determine the success of the ecosystem (Stam, 2015, p. 1766). Entrepreneurial ecosystems are the interconnected elements of a region that enhance venture creation and growth (Theodoraki and Catanzaro, 2021). Spigel, (2017, p. 49) defines an entrepreneurial ecosystem as the ‘union of localized cultural networks, investment capital, universities, and active economic policies that create environments supportive of innovation-based ventures.’ Similar to biological ecosystems, an entrepreneurial ecosystem consists of different elements, which can be individuals, groups, organisations and institutions that form a community by interacting with one another (Roundy, 2017; Kreuzer et al., 2018). The main themes that are particularly important in the literature (Etzkowitz et al., 2000; Wright et al., 2017; Roundy, 2017; Speigel, 2017; Nkusi et al., 2020) include: the actors within an entrepreneurial ecosystem, entrepreneurial education, human capital as a key actor, dynamic capabilities and the linkage between industry and university. As entrepreneurial ecosystems evolve, the importance and relative strength of components change, as do the policies necessary to sustain these systems over time (Mack and Mayer, 2015).
Key Terms in this Chapter
Entrepreneurial Ecosystems: Are dynamic, self-regulating network of many different types of actors. Entrepreneurial ecosystems are combinations of social, political, economic, and cultural elements within a region that support the development and growth of innovative start-ups. It includes all the interrelated factors that enable entrepreneurship, such as: policies, interventions, incubation, education, culture and networks. The ecosystems can develop organically but are typically supported and developed by community and government interventions.
Business Incubation Centre: Is primarily concerned with developing entrepreneurial culture within a defined ecosystem. It is designed to advise potential start-up companies, help them establish and accelerate their growth and success through a comprehensive business assistance programme. A BIC is typically a publically funded building in which a there is a process that supports entrepreneurs and start-up companies by providing access to services, training, mentoring, funding and networks.
Entrepreneurial Education: Is the set of education and training activities within the ecosystem which supports the development of entrepreneurial behaviours. Such education can be formal and occur during traditional second level and/or higher education provision. Alternatively, such education can form part of publically funded initiatives to support lifelong learning and continuous professional development.