Exploring the Support of the Entrepreneurial Ecosystem on Entrepreneurial Activity in Saudi Arabia

Abstract

There is a growing notion that entrepreneurship is a way of stimulating economic development. The economy is the outcome of the performance of individual actors, and its performance might improve with the increased entrepreneurial activity. Entrepreneurial activity takes place within an entrepreneurial ecosystem (EE) and while a plethora of studies have defined and assessed EEs in general terms, little is known about the complex nature of the connections between entrepreneurs and their environment in specific regional EEs. This study uses existing EE literature and the New Institutional Economics theory to identify and explore informal institutional EE factors in Saudi Arabia. Regional culture, networks and work talent emerged as informal support themes for the regional EE in Saudi Arabia from several interviews with Saudi Arabian entrepreneurs. This study supplements the literature on regional EEs in an institutional context for supporting entrepreneurial activity and economic development by offering theoretical and practical suggestions.