Population effect in Lagos’ entrepreneurial ecosystems: a blessing or a curse?

Purpose The purpose of this study is to investigate how population density and diversity shape entrepreneurial ecosystems (EEs) in emerging economies. The authors draw from ecological studies to explore the impact of population characteristics on ecosystem functioning and properties, particularly focusing on Lagos, Nigeria as a case study of a rapidly growing entrepreneurial hub in an emerging economy context. Design/methodology/approach Using qualitative methodology, the authors conducted 40 semi-structured interviews with ecosystem actors in Lagos, including founders, non-governmental organizations, support providers, government officials, financiers, universities and research institutions. The authors supplemented this with data from a two-day focus group discussion Summit where Lagos’ EE issues were discussed. Both data sets were analyzed using thematic analysis to identify recurring patterns and insights. Findings The findings of this study reveal population density and diversity function as a double-edged sword for Lagos’ EE. On the positive side, they supply entrepreneurs, diverse markets and talents to the region while fostering competition for employment that advances literacy and skill development. Conversely, they strain infrastructure, leading to three distinct outcomes: innovative behavior in response to constraints, development of unique coping mechanisms and relocation of businesses to neighboring regions. Research limitations/implications This study’s focus on Lagos limits generalizability to other contexts. Future research should explore similar dynamics in other regional ecosystems with different population characteristics and development stages. Quantitative studies could further measure the specific contributions of population factors to EE performance. Practical implications The authors argue for deliberate management and conservation of ecosystem population and its derivatives to maintain stability. Policymakers must implement frameworks that leverage population diversity while addressing density challenges to ensure all actors continue benefiting from ecosystem deliverables. This requires collaborative efforts between public and private sectors to manage growth sustainably. Originality/value This study offers a novel approach by examining population density and diversity specifically through an ecosystem lens, providing detailed insights into population-derived deliverables in EEs. The focus on both outputs and outcomes of population characteristics represents a conceptual contribution to EE literature.