Entrepreneurial ecosystems (EEs) represent interconnected networks of actors, institutions, and resources that drive innovation and business growth. With the rise of Generative Artificial Intelligence (GenAI), a transformative technology capable of creating new content autonomously, the dynamics within these ecosystems are undergoing significant change. This study explores how GenAI influences the structure and functioning of EEs by acting as both an enabler and a constraint.
As an enabler, GenAI fosters innovation by enhancing creativity, optimising decision-making, and democratising access to advanced technological resources. For small and medium enterprises (SMEs) and entrepreneurs, GenAI offers tools to streamline product development, create personalised marketing content, and reduce costs associated with creative and operational processes. Furthermore, GenAI strengthens ecosystem dynamics by facilitating collaboration, enabling knowledge sharing, and promoting inclusivity through accessible technological solutions.
However, the integration of GenAI also introduces challenges. Ethical concerns, such as data privacy, intellectual property, and algorithmic bias, pose risks to trust and equity within ecosystems. Additionally, GenAI's disruptive potential may lead to job displacement and societal resistance, particularly in creative and knowledge-intensive industries. Policymakers and practitioners must address these issues by fostering responsible AI adoption and developing regulatory frameworks that ensure transparency, accountability, and fairness.
The aim of this study is to conceptualise a framework that situates GenAI within the entrepreneurial ecosystem context, highlighting its economic, social, and institutional impacts. By integrating insights from entrepreneurial ecosystems (i.e. Stam, 2015), innovation studies, and AI ethics, this research contributes to a deeper understanding of how GenAI can support resilient and dynamic ecosystems while addressing the ethical and societal implications of its deployment. We examine how does GenAI influences the structure and functioning of EE? Through examining this question, we aim to illuminate not only the avenues through which GenAI can foster innovation and scalability within entrepreneurship but also the ethical considerations critical to safeguarding the integrity and inclusivity of these ecosystems.
Our findings offer actionable insights for entrepreneurs, policymakers, and educators, emphasising the need for strategies that harness the potential of GenAI to foster innovation and inclusivity while mitigating its risks. This study contributes to UNSDG Goal 8, which promotes entrepreneurship, development-orientated policies, and the proliferation of small and medium enterprises (UNSDG 2015). With this study, we aim to lay the foundation for future empirical research and policy initiatives aimed at leveraging GenAI for sustainable entrepreneurial growth.