Small is beautiful? Entrepreneurship ecosystems in small towns of Montana

Abstract

PurposeMuch of extant literature on entrepreneurship ecosystems is geared toward mid- and large-size metropolitan areas, and small cities are considered disadvantageous without essential elements for the ecosystem. The purpose of this paper is to shed light on understanding how small cities can have vibrant entrepreneurship ecosystems.Design/methodology/approachThis study conducted 42 semistructured interviews of entrepreneurs and supporters in small towns of Montana, USA. This study also supplemented with a survey of 178 firms.FindingsEntrepreneurs in small cities enjoy dense support networks including experienced entrepreneurs, key business and civic leaders and elected officials. They also attend entrepreneurial events and establish connections with support organizations with a distance of 200 miles.Originality/valueThe cases in this paper demonstrate that small cities can have vibrant entrepreneurship ecosystems without urban diversity and agglomeration. That additionally means that we should not apply the theoretical framework developed with large urban areas to small cities and consider different models of development for small cities.