Exploring Factor of Entrepreneurial Ecosystems in Achieving Sustainability: An ISM Approach

Abstract

The escalating environmental degradation and heightened climate change risks have thrust Small and Medium-Sized Enterprises (SMEs) and startups into the spotlight for their positive environmental impact. Despite a fragmented entrepreneurial ecosystem, research has significantly advanced in exploring the interplay between entrepreneurial ecosystems (EE) and sustainability. The investigation aims to present empirical evidence enhancing the literature on the association between entrepreneurial ecosystems and sustainability. Research objectives include identifying notable EE components and prioritising their interdependence through interpretive structural modelling (ISM). Utilising a qualitative approach, an expert panel refined the survey design, aligning with Isenberg's and Stam's frameworks. The survey comprised eleven domains covering governmental support, finance availability, and cultural aspects. A structural self-interaction model (SSIM) and reachability matrix were employed to establish a hierarchical model. Market intermediaries, infrastructure, education for sustainable entrepreneurship, and sustainable orientations are categorised as independent enablers as these enablers have high driving power but low dependence power. Findings indicate that at the highest level of hierarchy, sustainable entrepreneurial intentions play a crucial role in shaping the sustainability practice that follows in a business. Government policy has also emerged as India's most crucial enabler of sustainable entrepreneurship at the lowest level of ISM.From the perspective of developing countries, the study emphasises the importance of incorporating sustainability ideas into work and enhancing attitudes towards sustainable entrepreneurship to foster better-emerging millennials committed to long-term