Empowering Entrepreneurial Communities and Ecosystems

Case Study Insights

Morgan R. Clevenger, Michael W-P Fortunato, Morgan R. Clevenger, Michael W-P Fortunato

• Publisher: Routledge
• Year: 2022
• Print ISBN:
  9781032263175
• eBook ISBN:
  9781000615418
• Topic: Business
• Subtopic: Business General
• Index: Business

Entrepreneurial Communities and Ecosystems: Case Study Insights aims to provide applied examples that embody the theories, principles, and processes that contribute to empowering everyday entrepreneurial communities and ecosystems. Relying on a diversity of narratives from a wide range of entrepreneurial communities, entrepreneurial ecosystems, and organizations, this book presents a collection of case studies that take the reader inside the minds of leaders who are working to empower entrepreneurs and build entrepreneurial ecosystems and entrepreneurial communities—sometimes from scratch. The book features research and stories from entrepreneurs, development agencies, entrepreneurial support and assistance organizations (i.e. feeders and supports), governments, and involved citizens and local leaders in their quest to make their communities more entrepreneuring. The book presents an analytic frame through which the case studies are cross-analyzed, providing meta-guidelines for pursuing a broad range of strategies for supporting local and regional entrepreneurial action. This research volume is equally useful as an undergraduate or graduate text on the sociology of entrepreneurs and entrepreneurship as it is a field guide for ecosystem builders, policy makers, nonprofits, and entrepreneurship and social researchers worldwide.

1 An Introduction to Entrepreneurial Ecosystems and Entrepreneurial Communities to Empower Entrepreneurs

Michael W-P Fortunato and Morgan R. Clevenger

DOI: 10.4324/9781003287681-1

Introduction

This book is about entrepreneurship development, or the cultivation of both entrepreneurial action and a supportive environment that foster and reinforce one another in a particular organization, place, territory, or industry. We derive this term primarily from two fields of research: entrepreneurship and community development, so the term entrepreneurship development can be thought of as a sort of hybrid between the two. We will get into the details of how these two ideas combine shortly, but to put it as simply as possible, entrepreneurship development is simply the deliberate, strategic cultivation of that which supports entrepreneurship—anytime, anywhere, for anyone. It is a broad area of action on purpose, as it speaks to the idea that anyone, anywhere, at any point in their community’s or organization’s story can do something, anything, to support entrepreneurship. Whether you are a researcher, development practitioner or economic developer, an entrepreneur (at any stage), a civic leader, a business leader, or some combination of these, it is our goal that by reading these pages, you will learn more about the ways that anyone, from any part of an entrepreneurial community or ecosystem, can take immediate action to stimulate and support entrepreneurship. You too can become an entrepreneurship developer or entrepreneurship development researcher from just about any position you hold in your community or organization.

A kaleidoscope is described as “a mixture of different things” or “a changing pattern or scene” (Merriam-Webster, 2021c) as noted in our first book, “The concept of an entrepreneurial community [or entrepreneurial ecosystem] is dynamic and ever changing—a kaleidoscope of individuals, firms, communities, and all their related complexities” (Clevenger, 2017, p. 37). The rest of this book digs deeper into the actors, organizations, feeders and support enablers, processes, community supports, and governments reflected in this kaleidoscope to promote entrepreneuring as well as entrepreneurship at multiple levels of analysis as illustrated in Table 1.1. But where does this constant, stochastic change come from? From where do we derive the “kaleidoscope” analogy in a seemingly linear idea-plan-assemble-support-launch process? As we move from the individual toward the collective, new dynamics impact upon the business launch process that are well beyond the “sum of individual action.” We begin to see the emergence of societal and cultural phenomena that structure and order human action and interaction beyond the realm of individual utility maximization (Schmid, 2008; Hoffman, 1981)—the kind of “stuff” sociologists and anthropologists like to study and write about. What once seemed like a distant field of study examining the lived experience of people, often culturally distant people scattered across the globe, now seems to have new insights to contribute to our own entrepreneurial cultures in modern society.

Table 1.1 Levels of Analysis in Entrepreneurship

Level	Level of Analysis	Functional Characteristics
Macro-level 4	Worldwide level: global macro-sociological, global sociocultural, global society, global culture dynamics, global political economies; global entrepreneurial ecosystems and communities; global institution level	United Nations initiatives, human regulation context, global industrial relations, global business environments, global labor market dynamics, structures of resources and constraints, globalization, omnipreneurship
Macro-level 3	Environmental level: macro-sociological, national sociocultural, national society, national culture, political economy; national regulatory determinants; national entrepreneurial ecosystems and communities; national institution level	Social regulation context, industrial relations, national legislation, macro national business environments, national labor market dynamics, prevailing discourses of legitimacy, structures of resources and constraints, participation nationally toward globalization
Macro-level 2	Environmental level: macro-sociological; regional or state sociocultural; regional or state society; regional or state culture; supra-regional; political economy; regional or state regulatory determinants; regional and state entrepreneurial ecosystems and communities; regional or statewide clusters; inter-industry collaboration; institution level	Social regulation context, state legislations, macro-regional and state business environments, regional and state labor market dynamics, prevailing discourses of legitimacy, structures of resources and constraints via intra-state and inter-state concerns
Macro-level 1	Community level: sociological, sociocultural, sector or industry, market, community as organization, intra-industries, sector and industry entrepreneurial ecosystems; community clusters; localized regulatory determinants; entrepreneurial communities	Objective structures pertaining to the community organization and sector, industry rules and procedures, industry or sectoral patterns of legitimacy and competition, entrepreneurial networks (which may include associational, professional, and organizational linkages), informal codes of conduct, community and organizational history and culture, informal rules of legitimacy; feeders and supports for entrepreneurial communities
Meso-level 2	Population level: business ecosystems; entrepreneurial ecosystem(s)	Collective organizations serving a business or entrepreneurial ecosystem such as financial or network resources; strategies used to gain capital to legitimize their presence in the field
Meso-level 1	Organization level: Enterprise or firm level; entrepreneurial ecosystem	Individual organizations (not collective) such as educational, financial, cultural, and network resources; strategies used to gain capital to legitimize their presence in the field
Micro-level	Individual level: entrepreneurs and small business owners	“Great person” school; psychological entrepreneurial attributes, biographies, and motivations; individual skills; hero’s tale focus; management function; leadership function; intrapreneurship; entrepreneur health and well-being
Expanded from Clevenger (2017, Table 2.1, pp. 24–25) and amalgamated from ideas from Aldrich and Fiol (1994), Aldrich and Wiedenmayer (1993), Bourdieu (1977, 1984a, 1984b, 1987, 1990, 1998), Carroll (1987), Cunningham and Lischeron (1991), Forson et al. (2014), Fortunato and Clevenger (2017a), Sedkaoui (2019), Thornton (1999), Uy et al. (2017), and Wiklund et al. (2019).

Levels of Analysis in the Ecology of Entrepreneurship

Typologies help to organize levels of analysis for research. Understanding actors, their spaces, and their networks provides illumination and dialogue around specific opportunities for feeders and supports, policy, and metrics. Scholars divide entrepreneurs and their businesses; networks and alliances; clusters and districts; entrepreneurial ecosystems; entrepreneurial communities; and multiple regional, state, and national networks into various levels of analysis (Clevenger, 2017; Goldstein, 2003; Tappi, 2003). From our first book, we have slightly expanded on the levels of analysis to better describe the sociological dimensions and clarity in exploring entrepreneurial communities and entrepreneurial ecosystems (see Table 3.2). We have divided meso into two levels and added macro-level 4. Additionally, important expansion of relevant level phrases and some functional characteristics are included. The goal is trying to organize and better understand the complexity in the myriad of layers (cf. Courgeau, 2003; Lazega & Snijders, 2016). Note that unit of analysis is different from levels. Units may encompass the perspective view; the unit could be an individual, an individual business, a town or city, a university, a consortium of higher education institutions, an incubator, or various entrepreneurial ecosystems (e.g., local, regional, state, or national), an entrepreneurial community (e.g., locally, regionally, in a state, or nationally), or collectives of any of those (Goldstein, 2003; Miller & Ács, 2017; Tappi, 2003).

Entrepreneurial Community and Entrepreneurial Ecosystem

A large part of our ambition here is to unpack the relationship between the societal and the individual in supporting entrepreneurial action by understanding those forces within an entrepreneurial community or ecosystem that transcend individual-level transactions, capacities, and capabilities. If you wonder, as we often do, why entrepreneurs in some communities seem to have a “tail-wind” behind them, or why more entrepreneurs simply exist in some places while so few exist in others, you are asking the kinds of questions that keep us engaged in this work, doing cultural- and leadership-level research, and writing books like the one you are holding now! We hope to make the point again and again that an ingredient list is not enough. It is possible to have all the ingredients of a viable ecosystem, especially innovative entrepreneurs, and to never actually develop a mutually reinforcing cultural system of entrepreneurial support (see Breznitz & Taylor, 2014, for an example).

Developing any community, or ecosystem, requires a knowledge of community development as it relates specifically to the realm of communities of entrepreneurs and their supporters. Once distant from the field of entrepreneurship research, such insights are becoming requisite information for the generative establishment of any ecosystem. And this kind of community development knowledge is not immune from the same kinds of social tensions and dynamics found elsewhere in communities. Cultural norms matter, as do the prevalence of certain personalities and personality types, leadership styles, culturally situated ideas about progress and a vision of the future, conflict (sometimes petty), collaboration (sometimes tenuous), intentional or unintentional lack of inclusivity, dominant and protective behaviors, acting out, thinking out loud, generational differences, the bravery to voice counter-cultural ideas, activism, collective intentions, the list goes on nearly infinitely. When we speak of communities and ecosystems, we cannot avoid the language of real-world, everyday human dynamics, of “drama,” of great ambitions, and competing but equally feasible outcomes. We cannot shy away from discussions about conflict, not just risk and Knightian uncertainty as the literature would suggest (see Knight, 1921) but real human, interpersonal difference as a catalyst for innovation rather than an inhibitor (Johansson, 2004). We cannot avoid talking about our community of entrepreneurs as a very human collection of very ambitious and productive social deviants driven to break down existing systems through their capability to see a better path forward. (cf. Thomas & Autio, 2020; Thomas & Ritala, 2022.)

It should be evident from this book’s title that we will be focusing on entrepreneurial communities and ecosystems, which have received increased attention and very rapid conceptual development in the entrepreneurship literature over the past few years. These are the “process-oriented” side of entrepreneurship development, focusing more on the dynamic interrelationships among people than on the static conditions that give rise to higher rates of entrepreneurship.

Looking at Figure 1.1, it is important to note the placement of an entrepreneur and their relative ascendance and power in the overall model compared to Figure 1.2 with a broader range of actors. Furthermore, the structure and density of networks across both systems are very different, along with the emphasis of those networks. In entrepreneurial communities, such networks seek system stability, continuity, and egalitarian democracy.

Figure 1.1 Example of an entrepreneurial ecosystem provides a visual representation of a lean, entrepreneurial ecosystem. Note that a money bag represents a high percentage of personal investment.

Figure 1.2 Example of an entrepreneurial community provides a visual representation of the wide range...

Table of contents

• Cover
• Endorsements
• Half Title
• Series
• Title
• Copyright
• Dedication
• Contents
• Foreword
• List of Contributors
• List of Figures
• List of Tables
• Acknowledgments
• Preface
• 1 An Introduction to Entrepreneurial Ecosystems and Entrepreneurial Communities to Empower Entrepreneurs
• 2 Prologue to the Case Studies
• 3 A Case Study Exploring Entrepreneurial Communities in Northeastern Pennsylvania (NEPA)
• 4 Raising Entrepreneurial Ecosystems: Three Nebraska Case Studies
• 5 A Small-Town Music Movement as an Economic Driver and Entrepreneurial Ecosystem Development Strategy in Indiana
• 6 The Culture and Individual Nexus of an Entrepreneurial Ecosystem: The Impact of Culture on What Necessity-Driven Entrepreneurs Believe Is Possible as Illustrated in a Case Study From Nova Scotia, Canada
• 7 Called to a Community Venture: Entrepreneurial Mindset and Empowerment Through Networking as Illustrated in a Case Study in Abilene, Texas
• 8 A Framework for Decolonizing Community Economic Development and Entrepreneurship in Native Nations in Minnesota
• 9 Little Town, Layered Ecosystem: A Case Study of Chattanooga, Tennessee
• 10 A Meta-Analysis and Conclusions: Relevance of Developing Entrepreneurial Communities to Empower Entrepreneurs
• Index