Preipheral Urban Spaces Development

Preipheral Urban Spaces Development

Analyzing the effects of entrepreneurial ecosystems on the sustainability of local development in peri-urban areas (Case study: Islamabad Urmia neighborhood, Koshtargah)

Document Type : Original Article

Authors
1 Department of Geography, Faculty of Literature and Humanities, Urmia University, Urmia, Iran
2 Department of Geomorphology, Faculty of Natural Resources, University of Kurdistan, Sanandaj, Iran (Part-time Researcher at Kurdistan Studies Institute, University of Kurdistan, Sanandaj, Iran)
10.22034/jpusd.2026.563345.1385
Abstract
Introduction


Countries are made up of a set of settlements, and in this system, attention to the welfare and management of settlements is of strategic importance. Each ecosystem consists of interdependent subsystems that interact with each other to achieve a common goal. In an entrepreneurial ecosystem, the existence of different stakeholders and their mutual cooperation provide favorable conditions for entrepreneurial activities and the development of advanced businesses, which in turn leads to improved welfare and management of society. The entrepreneurial ecosystem is, in fact, a new way of thinking and acting in the direction of entrepreneurship development that considers all the systems necessary for business development and how they interact. Such an ecosystem encompasses hundreds of capacities that can be categorized into six main areas: "market", "politics", "financial capital", "culture", "supports" and "human capital". Islamabad-Koshtargah neighborhood, as one of the least developed urban and peri-urban areas of Urmia, is facing numerous challenges in the path of sustainable development. Weaknesses in economic, social and cultural infrastructure, along with limited access to resources and job opportunities, have placed this neighborhood among the areas that require targeted development interventions. In this regard, sustainable entrepreneurial ecosystems, as a comprehensive framework for strengthening innovation and creating employment opportunities, can provide an operational solution to improve the conditions of this neighborhood. The present study aims to analyze and explain the role of these ecosystems in the local development of the aforementioned area, seeking to provide strategies to reduce inequality, strengthen endogenous capabilities and improve the quality of life of residents. The selection of this neighborhood is considered essential due to its unique socio-economic characteristics and its importance as a representative example of the underprivileged peri-urban neighborhoods of Urmia, and the findings of this study can be used as a model for similar areas.





Methodology


The present study is quantitative in terms of approach, which is of an applied type based on its purpose, and is classified as a descriptive-analytical study in terms of its nature. In terms of theoretical foundations, the library method was employed, and to collect information related to the studied community, a survey method was used. The statistical population consists of active entrepreneurs residing in the Koshtargah neighborhood of Urmia who have established distinctive businesses and exhibit key entrepreneurial characteristics such as risk-taking, innovation, job creation, and opportunity utilization. This population is located within the limits of Islamabad, located in the second district of Urmia municipality. The individuals in question were those who succeeded in starting a business with a differentiated approach and had entrepreneurial characteristics such as risk-taking, innovation, job creation, and optimal exploitation of opportunities. Due to the hidden nature of the statistical population and the difficulty in accessing it, the snowball sampling method was used to select the samples. Finally, the data collection process was completed by designing, distributing, and completing 95 questionnaires. In the inferential statistics section, correlation analysis and structural equation modeling (SEM) methods were used to examine the relationships between variables. SPSS and Smart PLS software were used to perform these analyses. The PLS method was chosen because of its compatibility with conditions such as collinearity of independent variables, non-normality of data, and small sample sizes.


Results and discussion


In this study, the coefficient of determination (R²) was used as the main criterion for measuring the quality of the structural model. This index indicates the amount of variance explained by each endogenous latent variable by its related exogenous variables. The results show that the R² values for the institutional factor constructs are 0.703, the local economic development factor 0.653, the social development factor 0.62, and the environmental development factor 0.551. Accordingly, the explanatory power of the model for all constructs is assessed at an acceptable and appropriate level, because all values are above the strong threshold (0.67) or very close to it. Finally, according to the Chain criterion (1998), it can be concluded that the structural model of the research has a desirable explanatory power. In this study, the relationship between the "sustainable entrepreneurial ecosystem" construct and economic, social, institutional, and environmental development variables in the study area (Islamabad - Koshtargah) has been investigated using structural equation modeling. Based on the model outputs, the “sustainable entrepreneurial ecosystem” construct has a positive and significant impact on all dimensions of development, such that this amount is on institutional development with a path coefficient of 0.839 (the strongest impact), on economic development with a path coefficient of 0.808, on social development with a path coefficient of 0.787, and on environmental development with a path coefficient of 0.742 (the lowest impact). As the path coefficients show, although the intensity of the impact on different dimensions is different, all these relationships are statistically significant, and the relevant hypotheses are confirmed.


Conclusion


Based on the results obtained, it can be concluded that although the institutional factor with the highest intensity is the main driver of local development, an effective strategy must address all dimensions in an integrated and balanced manner. Strengthening institutions without considering economic incentives, or supporting businesses without considering social ties and environmental considerations, cannot lead to sustainable development in the peri-urban neighborhoods of Urmia, especially Islamabad- Koshtargah. This study quantitatively proves that success depends on a systematic look at all components of this ecosystem.
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Articles in Press, Accepted Manuscript
Available Online from 24 January 2026