The Role of Entrepreneurial Ecosystems in Driving Regional Economic Development

Entrepreneurial ecosystems (EEs) have come into the limelight of grasping the idea of how regions facilitate innovation, stimulate entrepreneurship, and spur economic growth. With an increasing dependency on knowledge-based and innovation based activities to enhance competitiveness, interconnected actors such as entrepreneurs, universities, investors, policymakers, incubators, accelerators and support based organisations have become a much more influential part of the economic outcomes. The critical analysis of the paper was based on the mechanisms of how entrepreneurial ecosystems are related to regional economic development relying on multidisciplinary knowledge in strategy, economic geography, entrepreneurship, and public policy. It exemplifies the way in which the dynamics of the ecosystem, institutional structures, network patterns, cultural practices, and streams of resources impact the entrepreneurial activity and shape the economic paths of regions. The paper suggests a conceptual model illustrating the interaction of the parts of the ecosystem to generate entrepreneurial vibrancy, structural change and inclusive development. The research makes its contribution to the body of knowledge in the theory by consolidating various bodies of knowledge and in practice by providing policy suggestions to enhance the competitiveness of the regions.