Traversing the multiple nested geographies of NUTs based entrepreneurial ecosystems

Area of Science:

• Regional Economics
• Entrepreneurship Studies
• Spatial Analysis

Background:

• Entrepreneurial Ecosystems (EEs) are crucial for regional analysis.
• Consensus on the appropriate geographical unit for studying EEs is lacking.
• Understanding the spatial relevance of different EE units is vital for small firms.

Purpose of the Study:

• To empirically test the relevance of wider geographical units for UK Entrepreneurial Ecosystems (EEs).
• To assess the impact of different NUTS levels (1, 2, 3) on small firm operations within the UK.
• To inform policy by identifying the most effective spatial scale for analyzing EEs.

Main Methods:

• Empirical analysis of the UK's Recovery Loan Scheme (RLS) for small and medium-sized enterprises (SMEs).
• Testing the spatial effects of different NUTS (Nomenclature of Territorial Units for Statistics) levels (1, 2, 3).
• Examining the influence of devolved nations (Scotland, Wales, Northern Ireland) and London on lower spatial levels.

Main Results:

• The devolved nations and London exhibit significant higher-order spatial effects on their constituent lower-order levels.
• Analysis at the NUTS 1 level is insufficient for understanding spatial dynamics outside of devolved nations and London.
• Smaller spatial units are required to accurately capture the entrepreneurial ecosystem relevant to small firms.

Conclusions:

• The geographical unit of analysis for EEs significantly impacts findings on small firm operations.
• Policy formulation for small firms requires localized approaches rather than broad regional strategies.
• Future research should focus on granular spatial scales to understand regional entrepreneurial dynamics effectively.