ECOSYSTEM RESOURCES, ENTREPRENEURIAL COMPETENCIES, AND STARTUP SUCCESS: A MEDIATION ANALYSIS

Abstract

Startup ecosystems across emerging economies, particularly in Nigeria, are increasingly recognized as engines of innovation, job creation, and inclusive growth. Yet, how ecosystem resources such as finance, policy support, infrastructure, and networks actually translate into startup success remains an open question. This study addresses that gap by examining the role of entrepreneurial competencies as a bridge between resources and performance. Using survey data from 300 Nigerian startups and analysed through Partial Least Squares Structural Equation Modeling (PLS-SEM), the findings show that ecosystem resources directly improve startup success (β = 0.32, p < 0.01) but exert a more substantial influence on entrepreneurial competencies (β = 0.45, p < 0.001). Entrepreneurial competencies—defined here as a collection of skills, aptitudes, knowledge, and experiences enabling individuals to perform entrepreneurial tasks—also strongly predict startup success (β = 0.41, p < 0.001). Mediation tests reveal that competencies partially mediate the relationship between resources and success (indirect β = 0.19, p < 0.01), accounting for 37% of the effect. Together, the model explains 46% of the variance in startup success. The study advances the literature by offering a context-specific definition of entrepreneurial competencies and highlighting their critical role in converting ecosystem resources into sustainable outcomes. For policymakers and ecosystem actors, the implication is clear: resources alone are not enough; they must be coupled with intentional capacity-building for entrepreneurial skills.