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From resource munificence to ecosystem integration: the case of government sponsorship in St. Louis

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  • Yasuyuki Motoyama
  • Karren Knowlton

Abstract

Government sponsorship of entrepreneurship has become a popular policy tool in the last 15 years. Despite this popularity, past academic studies have largely focused on firm-level survival rates and treated the effects of government sponsorship in isolation, which fails to capture the full effect of the sponsorship. That is, the objectives of the public sector include enhancing the macro-level entrepreneurial environment of the region as well as the success of individual firms. We expand research in this area through a case study in St. Louis, Missouri. We focus on the Arch Grants, a public–private coalition that provides $50,000 to 20 winners through their annual competition. Based on interviews of 46 recipient firms and 15 support organizations, we first demonstrate how government sponsorship can create a cohort of entrepreneurs who are able to learn from each other about business strategy, local mentors and other resources. Second, we uncover the process through which sponsorship can facilitate coordination among local entrepreneurship support organizations. Thus, we conclude that the evaluation of government sponsorship should go beyond the traditional firm-level performance measurement and consider the integration and enhancement of the local entrepreneurship ecosystem.

Suggested Citation

  • Yasuyuki Motoyama & Karren Knowlton, 2016. "From resource munificence to ecosystem integration: the case of government sponsorship in St. Louis," Entrepreneurship & Regional Development, Taylor & Francis Journals, vol. 28(5-6), pages 448-470, May.
    • Handle: RePEc:taf:entreg:v:28:y:2016:i:5-6:p:448-470
    DOI: 10.1080/08985626.2016.1186749
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    References listed on IDEAS

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    1. Erik Stam, 2015. "Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique," European Planning Studies, Taylor & Francis Journals, vol. 23(9), pages 1759-1769, September.
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    Cited by:

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    3. Kuebart, Andreas & Ibert, Oliver, 2019. "Beyond territorial conceptions of entrepreneurial ecosystems: The dynamic spatiality of knowledge brokering in seed accelerators," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 63(2-4), pages 118-133.
    4. Wei, Yifan, 2022. "Reprint of: Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(9).
    5. Romina Gómez-Prado & Aldo Alvarez-Risco & Berdy Briggitte Cuya-Velásquez & Marián Arias-Meza & Nilda Campos-Dávalos & Luis Juarez-Rojas & Maria de las Mercedes Anderson-Seminario & Shyla Del-Aguila-Ar, 2022. "Product Innovation, Market Intelligence and Pricing Capability as a Competitive Advantage in the International Performance of Startups: Case of Peru," Sustainability, MDPI, vol. 14(17), pages 1-21, August.
    6. Francesco Perugini, 2023. "Space–time analysis of entrepreneurial ecosystems," The Journal of Technology Transfer, Springer, vol. 48(1), pages 240-291, February.
    7. Bernd Wurth & Erik Stam & Ben Spigel, 2022. "Toward an Entrepreneurial Ecosystem Research Program," Entrepreneurship Theory and Practice, , vol. 46(3), pages 729-778, May.
    8. Zhe Cao & Xianwei Shi, 2021. "A systematic literature review of entrepreneurial ecosystems in advanced and emerging economies," Small Business Economics, Springer, vol. 57(1), pages 75-110, June.
    9. Wei, Yifan, 2022. "Regional governments and opportunity entrepreneurship in underdeveloped institutional environments: An entrepreneurial ecosystem perspective," Research Policy, Elsevier, vol. 51(1).
    10. Feldman, Maryann & Fleming, Lee & Heaton, Sohvi & Desai, Sameeksha & Teece, David, 2022. "Uncommon methods and metrics for local entrepreneurial ecosystems," Research Policy, Elsevier, vol. 51(9).
    11. Shi, Xianwei & Shi, Yongjiang, 2022. "Unpacking the process of resource allocation within an entrepreneurial ecosystem," Research Policy, Elsevier, vol. 51(9).
    12. Paige Clayton, 2024. "Different outcomes for different founders? Local organizational sponsorship and entrepreneurial finance," Small Business Economics, Springer, vol. 62(1), pages 23-62, January.
    13. Kuebart, Andreas, 2022. "Open creative labs as functional infrastructure for entrepreneurial ecosystems: Using sequence analysis to explore tempo-spatial trajectories of startups in Berlin," Research Policy, Elsevier, vol. 51(9).
    14. Ross Brown & Colin Mason, 2017. "Looking inside the spiky bits: a critical review and conceptualisation of entrepreneurial ecosystems," Small Business Economics, Springer, vol. 49(1), pages 11-30, June.
    15. Audretsch, David Bruce & Belitski, Maksim & Guerrero, Maribel, 2023. "Sustainable orientation management and institutional quality: Looking into European entrepreneurial innovation ecosystems," Technovation, Elsevier, vol. 124(C).
    16. Sylvia Hubner & Fabian Most & Jochen Wirtz & Christine Auer, 2022. "Narratives in entrepreneurial ecosystems: drivers of effectuation versus causation," Small Business Economics, Springer, vol. 59(1), pages 211-242, June.
    17. Eva Komlosi & Balazs Pager & Gabor Markus, 2019. "Entrepreneurial Innovations in Countries at Different Stages of Development," Foresight and STI Governance (Foresight-Russia till No. 3/2015), National Research University Higher School of Economics, vol. 13(4), pages 23-34.
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    19. Motoyama Yasuyuki & Knowlton Karren, 2017. "Examining the Connections within the Startup Ecosystem: A Case Study of St. Louis," Entrepreneurship Research Journal, De Gruyter, vol. 7(1), pages 1-32, January.

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