Unintended Consequences of Entrepreneurial Ecosystems: A Systematic Review and Conceptual Framework

Document Type : Original Article

Authors

1 Department of Organizational Entrepreneurship, Faculty of Entrepreneurship, University of Tehran

2 Faculty of Entrepreneurship, University of Tehran

Abstract

The mainstream literature on entrepreneurial ecosystems, by adopting a predominantly optimistic approach and focusing on economic growth, has paid less attention to the adverse and hidden consequences of these structures. Aiming to analytically elucidate the “dark sides” of ecosystems, this research seeks to provide an integrated framework for understanding the multi-level interactions of these consequences. This study was conducted based on a systematic literature review (SLR) methodology in accordance with the PRISMA protocol. Following a comprehensive search in the Web of Science and Scopus databases, out of 1,071 initial records, 124 valid articles were included in the data extraction phase and were coded and analyzed using a network thematic analysis method. The findings indicate that ecosystem dysfunctions can be classified into three levels: at the micro (individual) level, evidence of self-exploitation and the decline of psychological-moral resilience is observed; at the meso (institutional) level, challenges such as systematic exclusion (including the marginalization of women) and the rent-seeking of closed networks are prominent; and at the macro (structural) level, phenomena like spatial inequality (core-periphery divide) and asymmetric value extraction were identified. To explicate these findings, the conceptual model of the “Dialectical Cycle of Reproducing Darkness” was developed. The analyses imply that these negative consequences are not necessarily random anomalies; rather, evidence suggests an endogenous potential and tendency of ecosystems to reproduce these damages through upward and downward causation mechanisms. In this way, macro-level pressures and the institutional isomorphism of meso-level entities exacerbate human costs at the micro level. The results of this study emphasize the necessity of a paradigm shift. This approach steers policymaking away from a reductionist focus on the quantitative expansion of startups towards “multi-level regulation” and human-centric development, with an emphasis on curbing destructive feedback loops.

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History

  • Receive Date: 16 May 2026
  • Revise Date: 09 June 2026
  • Accept Date: 12 June 2026

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