Examining the influence of entrepreneurial ecosystem pressure on the economic, social, and environmental orientation of startups

Abstract

Startups are agile entities capable of fostering innovation and swiftly navigating turbulent market conditions. Against the backdrop of global challenges, particularly environmental and social issues, startups have gained prominence as potential agents of positive change. Recognizing their value, stakeholders, including large corporations, universities, and governments, actively seek collaboration and support for startup growth. This network of actors, or entrepreneurial ecosystem, exerts different types of pressure on startups. In particular, although efficiency, speed, and reliability are emphasized for economic success, there is an increasing emphasis on environmental and social sustainability within entrepreneurial ecosystems. This study explores the dynamics of entrepreneurial ecosystems and their impact on startup performance, specifically focusing on the dual pressures exerted on startups. The study delves into the potential conflict or synergy between these pressures, aiming to answer the research question regarding the impact of entrepreneurial ecosystem pressures on both economic and environmental/social sustainability. Through a survey conducted among Italian startups, the research reveals that these pressures do not compromise either economic or sustainability objectives. The findings contribute to a nuanced understanding of entrepreneurship, highlighting the interconnectedness between entrepreneurial ecosystems and individual company performance. Moreover, the study advances the sustainability literature by demonstrating that sustainability-oriented ecosystems can coexist with economic growth objectives, offering valuable insights for entrepreneurs, universities, public administration, and large companies.