Enabling degrowth through entrepreneurial ecosystems: Exploring key factors influencing degrowth decisions for SMEs

While entrepreneurial ecosystems are traditionally viewed as engines for growth-centric innovation, the intensifying pressures of climate change and resource depletion have catalyzed interest in degrowth as a viable alternative paradigm. This study investigates the factors influencing the adoption of degrowth strategies among Small and Medium Enterprises (SMEs) within the entrepreneurial ecosystem of Quebec, Canada. Based on a 2024 survey of 1416 entrepreneurs, our analysis focuses on the 512 respondents who implemented degrowth strategies in subsequent years, revealing that motivations such as personal work-life balance, economic constraints, and a lack of adequate ecosystem support were more influential than environmental concerns. These findings highlight a significant misalignment between existing ecosystem structures and the practical needs of sustainability-oriented entrepreneurs. Ultimately, this research argues that integrating degrowth principles into the broader entrepreneurial framework can foster greater inclusivity, resilience, and ecological responsibility, offering critical insights for policymakers and stakeholders seeking to bridge the gap between individual decision-making and systemic sustainability.