New ventures face high obstacles in recruiting young and new talent. The lack of organizational awareness and the repercussions of the liability of newness exacerbate the recruiting of new ventures and decreases the employer attractiveness of young firms. In order to gain legitimacy, new ventures ought to conform to the institutional environment. Based on institutional theory, a high level of conformity with the institutions of the environment improve the survival advantage and legitimacy of new ventures. The entrepreneurial ecosystem is a system of interdependent factors within a region that promote the creation and expansion of high-growth firms. In this research project, entrepreneurial ecosystems will be regarded as an institutional environment for entrepreneurship in a specific region.
The objective of the research project is to examine which influence the entrepreneurial ecosystem has on the assessment of employer attractiveness of new ventures by potential applicants. Furthermore, the project investigates individual differences between potential applicants on how they assess the importance of the ecosystem attributes for employer attractiveness of new ventures. The goal is to generate implications on how an ecosystem could help to overcome obstacles in recruiting for young firms.