Local governance of evolutionary entrepreneurial ecosystems: A case study in a low-density territory

Abstract

The entrepreneurial ecosystem (EE) concept has been getting attention as a comprehensive approach to studying the evolution of a local economy, and it is increasingly adopted by policymakers to promote entrepreneurship and innovation and foster local socio-economic development. This study represents an original attempt to understand the EE governance evolution and to contribute to the research on underdeveloped places, such as low-density territories. Evidence is taken from the EE of Fundão, a low-density municipality in the Centro region of Portugal, between 2012 and 2022. The primary and secondary data collected was analysed in the light of evolutionary governance theory and recent literature on evolutionary EEs. The findings highlight the significant role local government plays in the creation and development of the EE, by addressing the gaps in governance and resources within low-density territories, and performing multiple roles during the EE evolution. Moreover, several EE governance strategies were identified to tackle local obstacles including community acceptance, lack of entrepreneurial culture, or resource limitations. This work provides important contributions to EE and regional development literature, as well as implications for local and regional policymakers aiming to promote entrepreneurship and innovation in their territories.