Transformation of entrepreneurial ecosystems: Dynamics and forces shaping the future of entrepreneurship in sparsely populated regions

Abstract

Entrepreneurial ecosystems are crucial for creating regional vitality. However, there are significant regional differences: high-end ecosystems like Silicon Valley differ greatly from Finnish entrepreneurial ecosystems in terms of funding availability, network structures, infrastructure and cultural factors. Even within Finland, there are notable differences between ecosystems. This research examines entrepreneurial ecosystems in sparsely populated regions, focusing on dynamics and the transformative forces shaping them while identifying structural components and contextual factors influencing the evolution of the ecosystem. Beyond entrepreneurial ecosystems, this research provides an in-depth examination of accelerators, which can play a significant role in startup growth by providing mentorship, funding and market access. Accelerators vary in terms of the stage of a new venture’s development, ranging from pre-seed and early-stage programmes to seed, business and corporate accelerators.

This study explores the emerging impact of human-AI collaboration on innovation and business development. Additionally, it includes a case study on energy companies, particularly in the electricity sector, which is undergoing a major transition towards green energy sources, and explores the adoption of new, sustainable business models. This transition is driven by regulatory changes, market dynamics and technological advancements, which are reshaping both energy production and distribution networks. The ongoing transition to Industry 4.0 and 5.0 drives greater technological integration and imposes higher sustainability requirements on businesses.

All these themes are interconnected through the internal dynamics of the ecosystem, transformative forces, regional vitality, culture and business environments. The evolution of the ecosystem can explain how new ventures and entrepreneurship can succeed in sparsely populated regions. A deeper understanding of these phenomena can foster entrepreneurship, enhance regional resilience, and strengthen the long-term vitality and economic development of sparsely populated areas.