The Impact of Entrepreneurship Ecosystem on the Success of Startups

An entrepreneurial ecosystem or entrepreneurship ecosystems are peculiar systems of interdependent actors and relations directly or indirectly supporting the creation and growth of new ventures. Many researchers have highlighted the importance of the entrepreneurship ecosystem in improving entrepreneurial activities; therefore, the aim of this study is to contribute to the body of knowledge that the entrepreneurship ecosystem is correlated with the perception of founders and the success of startups, companies or ventures that are focused on a single product or service that the founders want to bring to market. In this regard, data were collected through a survey of 200 founders or CEOs of small and medium-sized companies and startups in Tehran who have been running their companies for at least five years. The analysis of the initial data was conducted using Partial Least Squares (PLS) technique. Based on the empirical data results, five out of six ecosystem factors significantly influence entrepreneurs' perception and the success of startups. Additionally, founders' perceptions also have a positive impact on startup success. Overall, the results of this study indicate that in an entrepreneurial ecosystem with features such as market access, government support policies for entrepreneurs, basic and university education in entrepreneurship, entrepreneurial support systems, and a suitable business environment, entrepreneurial success and perception increase.