The economics of entrepreneurial ecosystems: the role of internal capabilities and external conditions

This study examines how internal and external environmental factors influence entrepreneurial activities, using the Resource-Based View (RBV) theory. Analyzing panel data from 38 countries, the research employs Driscoll-Kraay and Fixed Effect robust models to address cross-sectional dependence and heteroscedasticity. It examines both internal factors, including personal traits, motivations, and capabilities, as well as external factors such as governmental support, financial access, and infrastructure quality. Findings reveal that internal factors have a significantly positive impact on entrepreneurship, while external factors exhibit a weaker influence. The effects vary based on a country’s income level, emphasizing the context-dependent nature of entrepreneurship. The study’s limitations include reliance on secondary data and a specific time frame. The research provides policymakers and business leaders with insights on how to enhance entrepreneurial ecosystems by prioritizing internal resource development, with broader implications for economic growth and job creation.