From Startup to Scaleup: Public Policies for Emerging Entrepreneurial Ecosystems

Abstract

AbstractThe transition from startup to scaleup is a complex process, intricately tied to the dynamic ecosystem in which a startup originates and flourishes. Recognizing the substantial socioeconomic benefits that high-growth firms bring to their operating environments, policy makers try to strategically craft public policies to bolster their development, constituting a pivotal facet of entrepreneurial ecosystems (EE). This research aims to identify the challenges to growth faced by startups and to pinpoint policy focal areas conductive to addressing these challenges in an emerging EE. Effective public policies must be tailored to the specific context, serving as enablers while entrusting leadership roles to entrepreneurs and other EE stakeholders. To achieve our objective, we selected an emerging EE and approached entrepreneurs and influential agents in the EE through questionnaires and focus groups. The findings conclude with a set of recommended public policy actions designed to fortify essential components within an emerging EE that fosters the growth of its startups. These actions are categorized into three broad topics: enhancing talent availability, promoting networking opportunities, and reinforcing the entrepreneurial culture of the region.