From Ideation to Growth: The Evolutionary Impact of Entrepreneurial Ecosystem Elements on Startups

ABSTRACT

Entrepreneurial ecosystems (EEs) comprise interconnected cultural, financial, institutional, and relational elements that shape startup development. While prior research has identified EEs' key components, limited attention has been given to how their influence evolves across the startup lifecycle. This study addresses this gap by examining how health factors (finance, infrastructure, legal systems, government support, culture, education) and performance factors (networking, entrepreneurial intentions, market dynamics, value creation, self‐efficacy, entrepreneurial activity) vary for founders across the ideation, establishment, break‐even, and growth stages, alongside innovation and research as a cross‐cutting enabler. Using a qualitative multi‐case design, data were collected through in‐depth founder interviews and triangulated with mentor and investor insights. The analysis reveals that EE elements display dynamic, stage‐contingent relevance: early‐stage progress is shaped primarily by culture, mentoring, and self‐efficacy, while institutional finance, regulatory alignment, infrastructure, and global networks become critical as ventures scale. Innovation and research operate as cross‐cutting enablers that strengthen adaptability and competitiveness throughout the lifecycle. The findings offer a stage‐sensitive framework for understanding how ecosystem components interact with venture development, explaining why founders report divergent trajectories even within the same ecosystem. These dynamics are synthesized in a conceptual framework mapping the average relevance trajectories of health factors, performance factors, and innovation and research across the four lifecycle stages. The study offers actionable implications for policymakers, incubators, investors, and founders, emphasizing the need for targeted, lifecycle‐aligned ecosystem support.