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 Assistant Professor, Department of Geography, Faculty of Literature and Humanities, Urmia University, Urmia, Iran.
2 Ph.D. Student, Department of Geography, Faculty of Literature and Humanities, Urmia University, Urmia, Iran.
3 Assistant Professor, Department of Geomorphology, Faculty of Natural Resources, University of Kurdistan, Sanandaj, Iran (Part-time Researcher at Kurdistan Studies Institute, University of Kurdistan, Sanandaj, Iran).
Abstract
Extended Abstract
Introduction
Countries consist of interconnected systems of settlements, within which the welfare and management of settlements play a strategic role. Each ecosystem is composed of interdependent subsystems that interact to achieve shared objectives. Within an entrepreneurial ecosystem, the presence of diverse stakeholders and their mutual cooperation creates favorable conditions for entrepreneurial activities and the development of advanced businesses, ultimately contributing to improved social welfare and governance. The entrepreneurial ecosystem represents a contemporary approach to entrepreneurship development, encompassing all systems essential to business formation and growth and emphasizing their interactions. This ecosystem includes numerous capacities that can be broadly categorized into six dimensions: market, policy, financial capital, culture, support mechanisms, and human capital. The Islamabad–Koshtargah neighborhood, as one of the least developed urban and peri-urban areas of Urmia, faces significant challenges to sustainable development. Deficiencies in economic, social, and cultural infrastructure, combined with limited access to resources and employment opportunities, have placed this neighborhood among areas requiring targeted development interventions. In this context, entrepreneurial ecosystems offer a comprehensive framework for strengthening innovation and generating employment opportunities and can serve as an operational approach to improving local conditions. Accordingly, the present study seeks to analyze and explain the role of entrepreneurial ecosystems in the local development of this neighborhood, with the aim of reducing inequalities, enhancing endogenous capacities, and improving residents’ quality of life. Due to its specific socio-economic characteristics and its representativeness of underprivileged peri-urban neighborhoods in Urmia, the findings of this study may provide a useful model for similar areas.

Methodology
This study adopts a quantitative approach and is applied in terms of purpose, while methodologically it is descriptive–analytical. Theoretical foundations were developed using library research, and data related to the study area were collected through a survey method. The statistical population comprised households residing in the Koshtargah neighborhood of Urmia, located within the Islamabad area of the city’s second municipal district. The target respondents were individuals who had successfully initiated businesses and demonstrated entrepreneurial characteristics such as risk-taking, innovation, job creation, and effective opportunity utilization. Given the hidden nature of the population and difficulties in access, a snowball sampling method was employed. Ultimately, data were collected through the design and completion of 95 questionnaires. Inferential analyses were conducted using correlation analysis and structural equation modeling (SEM). SPSS and SmartPLS software were used, and the PLS approach was selected due to its suitability for small sample sizes, non-normal data distributions, and multicollinearity among independent variables.

Results and discussion
The coefficient of determination (R²) was used as the primary indicator for evaluating the quality of the structural model, reflecting the proportion of variance in endogenous latent variables explained by their exogenous predictors. The results indicate R² values of 0.703 for institutional development, 0.653 for local economic development, 0.620 for social development, and 0.551 for environmental development. These values suggest that the model exhibits acceptable to strong explanatory power, as they exceed or closely approach the recommended threshold. According to Chin (1998), the structural model therefore demonstrates satisfactory explanatory capability. The SEM results further reveal that the sustainable entrepreneurial ecosystem has a positive and statistically significant effect on all dimensions of development in the Islamabad–Koshtargah area. The strongest effect is observed for institutional development (path coefficient = 0.839), followed by economic development (0.808), social development (0.787), and environmental development (0.742). Despite variations in effect magnitude, all relationships are significant, thereby confirming the proposed hypotheses.

Conclusion
The findings indicate that although institutional factors exert the strongest influence on local development, sustainable progress requires an integrated and balanced approach addressing all dimensions simultaneously. Institutional strengthening without economic incentives, or business support without attention to social cohesion and environmental considerations, cannot lead to sustainable development in peri-urban neighborhoods such as Islamabad–Koshtargah. This study quantitatively demonstrates that successful local development depends on a systemic perspective encompassing all components of the entrepreneurial ecosystem.

Funding
According to the responsible author, this article has no financial support

Authors’ Contribution
Authors contributed equally to the conceptualization and writing of the article. All of the authors approved thecontent of the manuscript and agreed on all aspects of the work declaration of competing interest none.

Conflict of Interest
Authors declared no conflict of interest.

Acknowledgments
We are grateful to all the scientific consultants of this paper.
Keywords
Subjects

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