Purpose This study aims to analyze scenarios that could reconfigure the entrepreneurship ecosystem (EE) of small and medium-sized enterprises (SMEs) in Peru through the application of the dynamic performance management (DPM) approach. This is intended to understand the structural dynamics that shape the behavior of the ecosystem and its evolution in response to changes in key variables. Design/methodology/approach A DPM Chart was constructed, and system dynamics modelling was applied to represent the causal relationships, reinforcing and balancing feedback loops that characterize the Peruvian EE of SMEs. A simulation sensitivity analysis was developed to assess the systemic effects of variations in policy parameters, such as access to credit, tax burden and gross domestic product growth. Findings Simulations suggest that integrated public interventions may activate reinforcing loops associated with increases in formal entrepreneurial intention and the modelled creation of SMEs. The model showed a progressive and sustained increase in the number of active SMEs depending on the volume of credit granted, consistent with the model’s representation of financing as a strategic resource, particularly in contexts where it is often limited. A similar pattern was observed in simulations related to the tax burden. Within the simulated scenarios, higher tax rates were associated with a decrease in the modelled growth of new SMEs and a drop in entrepreneurial intention. The model reveals non-linear interactions and delayed effects among policy variables. Originality/value This study contributes to the literature on EE in SMEs by operationalizing a systemic and dynamic approach adapted to the context of emerging economies. It presents a novel application of DPM to entrepreneurship policy analysis, offering policymakers a simulation tool to anticipate outcomes and design adaptive interventions.
Rincón et al. (Fri,) studied this question.