Abstract/Summary

We use the entrepreneurial ecosystem perspective to study political entrepreneurship as a form of alignment between disruptive and unproductive entrepreneurs with authorities aiming to get privileged access to resources. Political entrepreneurship (PE) has emerged as a phenomenon in transition and developing economies and may compromise the entrepreneurial ecosystem (EE) objectives. Combining interview and survey data, this study provides an in-depth assessment of entrepreneurial ecosystems in a transition economy and the role that political entrepreneurs play in moderating the effect of resources on the quality of entrepreneurship. Our findings are generalizable to other transition and developing economies as we demonstrate what various configurations of factors increase stakeholders’ perception about EE and directly affect its quality. Our findings reveal that stakeholders appreciate the evolution trends towards mature and productive entrepreneurship, but the progress is slow, nonlinear, with setbacks, still seriously threatened by corruption, lack of competence, and the interference of the political factor as well as regional differences. This study offers implications on how to adopt a place-based and holistic approach to institutional reforms when policymakers aim at creating productive entrepreneurial ecosystems. This study implications are in the adoption of a place-based and holistic approach to institutional reforms when policymakers aim at creating productive entrepreneurial ecosystems. While political entrepreneurship may significantly distort an ecosystem, this study offers recommendations to managers and policymakers who plan to start a business in an environment with weak institutions and the rule of law.