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Instrumentalization of entrepreneurship support in Poland, Estonia and Slovakia. Local government, central administration and public institutions

  • April 2021
Authors:
Tomasz Skica at University of Information Technology and Management in Rzeszow (Poland)
Tomasz Skica
  • University of Information Technology and Management in Rzeszow (Poland)
Jacek Rodzinka at Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Jacek Rodzinka
Malgorzata Anna Lesniowska at Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Malgorzata Anna Lesniowska
Karolina Palimąka at Wyższa Szkoła Informatyki i Zarządzania z siedzibą w Rzeszowie
Karolina Palimąka
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The book is devoted to supporting entrepreneurship in Poland, Slovakia and Estonia from the perspective of local authorities of each country, solutions available from the perspective of the central level, as well as the involvement of the institutional environment in creating conditions for initiating and running a business.
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The Baltic people of Estonia, Lithuania, and Latvia gained recognition with their successful use of a cultural tool, singing folkloric songs, to protest collectively against their common Soviet oppressor in the summer of 1988, preceding the collapse of the Soviet Union. Rational-choice theorists have argued that large rebellious movements are paradoxical because the larger the number of potential revolutionaries, the greater the leadership, participation, and coordination problems they face (Olson, 1971; Tullock, 1974). This paper investigates Estonia’s Singing Revolution and illustrates how ethnic Estonians used their shared cultural beliefs and singing traditions as a tacit, informal institutional solution to overcome the collective-action problems with organizing and participating in mass singing protests against the Soviet regime. The paper goes further to extend the standard rational-choice framework and to include a more dynamic, entrepreneurial-institutional perspective on sociocultural change by accounting for the role of cultural leaders as cultural entrepreneurs, a subset of institutional entrepreneurs. The success of Estonia’s Singing Revolution can be ultimately attributed to leadership in the form of cultural entrepreneurship going back to pre-Soviet Estonian times. The revived legacy of ancient shared beliefs, folkloric practices, and singing tradition represented the necessary social capital for the Estonian people to voice collectively shared preferences for political and economic governance during a window of constitutional opportunity. Mikhail Gorbachev’s Glasnost, a policy aimed to improve Soviet formal institutions by fostering freedom of speech and political transparency, also provided a context propitious for the Singing Revolution because it lowered the perceived costs of participation in the rebellious singing and opened a window of opportunity for political change.
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The present paper aims to develop an understanding of interconnections between the entrepreneurial ecosystem and entrepreneurial opportunity. The first step of this research was to disclose the development of the ecosystem within two higher (efficiency- and innovation-driven) stages of economic development and the transition between them according to the World Economic Forum, based on the model by Dutch researcher Erik Stam. The Estonian entrepreneurial ecosystem was analyzed as an example. Secondary data on Estonian entrepreneurial ecosystems were collected and analyzed. In its second step, this research follows a case-study design. The start-up period of the studied Estonian companies represents different degrees of the maturity of the ecosystem: Regio and Mobi Solutions – efficiency-driven, GrabCAD – the transition from efficiency to innovation-driven, and Bolt (Taxify) – an innovation-driven economy. The example of the Estonian ICT sector proves that the most important contributors to the talent growth, the knowledge base, and framework conditions of the entrepreneurial ecosystem are the state through its infrastructure decisions and educational programs along with successful entrepreneurs who shape the role models known in Estonia today as the Skype-effect. Decisions on digital telecom infrastructure and e-society in the early stage of the transition in tandem with enterprise encouragement created a subsequent boom in ICT-based ventures in Estonia 10-15 years later. The processes resulted in achieving an innovation-driven society and the highest level of opportunity-driven entrepreneurship in Europe in 2017. With that, new venture funding has replaced the former development engine – foreign direct investment (FDI). Examples of ICT-based new ventures have demonstrated that the growing maturity of the ecosystem increased venture investment from “bootstrapping” to millions of euros of seed-funding and shortened new product development cycles from 5-7 to 1-3 years. The study shows that maturing ecosystems shorten business development processes, thereby increasing the integration of different ecosystems. The start-up success stories enhance trust in the particular business environment, and they both increase investments and accelerate the entry of new ventures, making better use of the emerging windows of opportunities. Keywords: entrepreneurial ecosystem; opportunity identification and transformation; window of opportunity; innovation economy; ICT sector
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