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Entrepreneurial ecosystems in conflict regions: evidence from Ukraine

Author

Listed:
  • Maksim Belitski

    (University of Reading
    ICD business School)

  • Nataliia Cherkas

    (Kyiv National Economic University)

  • Olena Khlystova

    (University of Reading)

Abstract

Entrepreneurship is a productive force of innovation and economic development. However, in post-conflict regions, there is a greater challenge in allocating entrepreneurial talent to productive entrepreneurship. In this study, we examine the entrepreneurship ecosystem, which is built on the “bottom-up” principles to understand whether its pillars can facilitate productive entrepreneurship in two Ukrainian regions shaken by multiple revolutions and regime change. We introduce a model that puts entrepreneurial conditions in cities and formal institutional changes to a competitive test. Building on the regional entrepreneurship literature, we perform an empirical study in a developing country to reveal what drives productive entrepreneurship in post-conflict regions with entrepreneurship culture, formal networks, debt and equity financing emerging as important determinants of productive entrepreneurship. The effect of formal institutions is significant but highly correlated with rent-seeking behavior of government and corruption. Our analysis suggests that the entrepreneurial conditions in regions focusing on the bottom-up processes of supporting entrepreneurship should work better to enhance productive entrepreneurship activity in a post-conflict region.

Suggested Citation

  • Maksim Belitski & Nataliia Cherkas & Olena Khlystova, 2024. "Entrepreneurial ecosystems in conflict regions: evidence from Ukraine," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 72(2), pages 355-376, February.
  • Handle: RePEc:spr:anresc:v:72:y:2024:i:2:d:10.1007_s00168-022-01203-0
    DOI: 10.1007/s00168-022-01203-0
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    More about this item

    JEL classification:

    • D74 - Microeconomics - - Analysis of Collective Decision-Making - - - Conflict; Conflict Resolution; Alliances; Revolutions
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • M13 - Business Administration and Business Economics; Marketing; Accounting; Personnel Economics - - Business Administration - - - New Firms; Startups
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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