Entrepreneurial ecosystem services in cultural and creative industries: Evidence from the Watapath sector in a resource-constrained setting

Cultural and creative industries (CCIs) are increasingly recognised as contributors to economic development in emerging economies, yet limited empirical work explores how entrepreneurial ecosystem services (EES) support traditional craft sectors in Sri Lanka. This study explores nature and types of EES of the Watapath industry in the Galatharaya region, a culturally significant craft centred on Palmyra fan mainly used as a ritual item in Buddhist culture. Using a qualitative case study design, data were collected through 12 semi-structured interviews with experienced artisans. Thematic analysis supported by NVivo software was employed to identify ecosystem strengths, weaknesses, and interdependencies. The findings reveal four key themes shaping entrepreneurial activity: human capital challenges, fragmented institutional support, financial and market barriers, and limited technological adoption. Artisans reported declining intergenerational skill transfer, absence of structured training, and gendered labour constraints. Institutional engagement was perceived as sporadic, with minimal coordination among support agencies. Financial challenges included high interest rates, inadequate credit facilities, and restricted access to broader markets. Technological innovation remained low due to high costs, limited awareness, and minimal institutional facilitation. The interplay of these barriers creates an underdeveloped entrepreneurial ecosystem, constraining industry growth, innovation, and long-term sustainability. The study contributes to entrepreneurial ecosystem theory by extending its application to a resource-constrained, heritage-based craft industry, highlighting dynamics overlooked in urban or high-tech contexts. Practical implications include the need for structured vocational programs, improved microfinance mechanisms, coordinated institutional interventions, and targeted support for technological upgrading. By situating the Watapath sector within the broader CCI and ecosystem framework, this research offers actionable insights for policymakers and development stakeholders aiming to strengthen Sri Lanka’s traditional craft industries.