Unveiling the Dynamics of Entrepreneurial Ecosystems in an Emerging Economy: A Delphi and MCDM Approach

The global surge in startup activity has led to the requirement of understanding entrepreneurial ecosystems (EEs) in emerging economies. This study employs a dual-lens approach to analyze the health and performance dynamics of the EE from an emerging economy-India. Delphi Technique is used to identify the elements of the EE; Best Worst Method (a multi-criteria decision-making method) is employed to quantify their contributions to the health and performance of the EE. Availability of finance, government programs, physical infrastructure, entrepreneurial culture, legal infrastructure, entrepreneurial education and training, and ease of shutting down emerge as key health factors. Innovation and research serve as a crucial mediating factor. On the performance front, entrepreneurial perception of market dynamics, intentions, value creation, networking, mentoring, perception about entrepreneurship, self-efficacy, activity, and employment opportunities emerge as influential factors. The study proposes two indices to measure EE health and performance. This standardized approach can help compare EEs, identify intervention opportunities, offer holistic industrial insights, and aid investment decisions. The existing indices, like the Global Entrepreneurship Index, do not consider the regional context and assume the contribution of all elements of the EE as equal. Our research offers a comprehensive framework for evaluating and advancing EEs in emerging economies through a weighted framework for elements contributing to the health and performance of an EE respectively.