Designing Entrepreneurial Ecosystems to Support Resource Management in the Tourism Industry

Introduction

The study of entrepreneurship has grown rapidly over the past two decades. Berglund and Johansson (2007, p. 78) propose that there is some kind of mystification regarding the assumptions that can be attached to entrepreneurship. The result is a wide range of policies which affect virtually every element of the entrepreneurial ecosystem (Hegarty et al., 2020). The intention to start a new venture can be culturally bound. Culture refers to the way activities are typically undertaken and completed in an entrepreneurial ecosystem (Brennan 1992, p. 3), i.e. its modus operandi. It can be argued that the entrepreneurs are influenced by the supports and culture of their entrepreneurial ecosystems. (Bass and Avolio 1993). Entrepreneurial culture focusses on the existence of common values, attitudes; and essential assumptions of what is important (Brown 1995, p. 9). According to Patterson and Spencer (1991, p. 142), it refers to the model of behaviour, beliefs and ideologies that people have about their entrepreneurial ecosystem. Therefore, it is important to understand the relationship between entrepreneurship culture and the design and development of entrepreneurial ecosystems.

The decision to become an entrepreneur can be a deliberate career choice. However, it can also be driven by certain triggering events (Bygrave and Zakarakis, 2014), for example, a change in an individual’s social, family and/or economic circumstances (Littunen, 2000). An entrepreneurial ecosystem can be characterised by many factors such as: regulation, political systems, labour market dynamics, infrastructure and the availability of credit. Sustainable job creation particularly in rural communities requires that we provide an ecosystem that enables entrepreneurs to develop, create, produce and supply innovative new products and services. In addition entrepreneurs will need support to allow them the efficiently and effectively manage the factors of production. Indeed, there is a need to support all types of entrepreneurs throughout their business cycle and in all their activities. Van Gelderen et al., (2008, p. 539) reflect that changes in the political and socio-economic environment have resulted in fewer opportunities for continuous organizational employment. New structures and strategies need to be explored, as entrepreneurs are likely to require assistance in order to develop their: business ideas; grow sales; and manage their factors of production. This is particularly important in areas where the traditional socio-economic environment has been impacted by the development of new industries e.g. the tourism industry, which often replaces traditional local businesses in rural areas across Europe. For example, entrepreneurs in the area of tourism in coastal rural communities must manage the traditional seasonality, inconsistency and instability associated with employment in the industry. Therefore, one of the main factors in progress of any tourism industry component is the development of human capital. Indeed, the appearance of innovative types of contracts such as the discontinuous fixed employment contract have a significant impact on the local labour markets (Simon-Moya et al., 2014; and Yebra-Serrano, 2019). Therefore, this chapter examines the impact that the proliferation of research on entrepreneurial experiences has for the evolution of entrepreneurial ecosystems. The focus is on developing design principles that can help to integrate the literature. The purpose is to help to (re)design existing practices or design new solutions for enhancing government managed/influenced ecosystems with an emphasis on the management of the factors of production, specifically, human resources.