Digital Innovation Meets Environmental Sustainability: Assessing the Role of Governance and Regulatory Ecosystems

Abstract

This research paper investigates the complex interplay between government interventions and startup success, analysing how regulatory frameworks and policy measures affect entrepreneurial ecosystems. While government policies such as financial incentives, simplified procedures, and tax breaks are intended to foster startup growth, their efficacy is often moderated by barriers like market entry difficulties, bureaucratic inefficiencies, and infrastructural challenges. Using both qualitative and quantitative methodologies, this study evaluates the direct impacts of governmental actions on startups and explores the moderating effects of ecosystem challenges. The findings reveal that while motivational factors and supportive government schemes directly correlate with startup success, significant barriers can undermine these positive impacts. The study suggests that for government policies to be more effective, they must be designed to directly address these moderating challenges and tailored to the specific needs of startups. This research contributes to the broader discourse on policy development for entrepreneurial ecosystems and suggests pathways for future investigations to enhance the nuanced understanding of regulatory impacts on startup success.