Purpose: The main objective of this study is to provide an accurate and systematic picture of the current state of the handicrafts entrepreneurship ecosystem in East Azerbaijan Province and to identify the key factors influencing its functionality. By analyzing the existing structures, capacities, and challenges, this research seeks to establish a scientific foundation for designing effective policies and operational programs that can accelerate the development of the handicrafts sector and promote sustainable employment in the region. Methodology: This research was conducted using a mixed method approach and is applied in nature. In the qualitative phase, data were collected through expert interviews and analyzed using thematic analysis, which resulted in identifying six main factors: cultural factors, laws and regulations, infrastructure, human capital, financing, and markets. In the quantitative phase, to assess the current status of these factors, a researcher made questionnaire was distributed among 187 managers and employees in the handicrafts sector (selected using Cochran’s formula from a population of 246 individuals). The quantitative data were interpreted using statistical methods and structural modeling analyses. Findings: The findings indicate that all identified factors have a positive and significant impact on the province’s handicrafts entrepreneurship ecosystem. Among these, infrastructure factors play the most influential role with a path coefficient of 0.214, followed by cultural factors (0.20), laws and regulations (0.193), human capital (0.188), financing (0.166), and markets (0.158). The results highlight that weaknesses in infrastructure, along with the need to strengthen cultural and regulatory components, represent major bottlenecks for ecosystem development. This analysis provides a foundation for prioritizing policy actions and resource allocation. Originality/value: The added value of this research lies in presenting a localized and precise model of the handicrafts entrepreneurship ecosystem in East Azerbaijan, derived from the simultaneous analysis of qualitative and quantitative data. This model clarifies the gap between the current and the desired states and offers actionable insights for policymakers, managers, and stakeholders in the handicrafts sector. The findings can serve as a scientific basis for designing operational programs, development projects, and effective strategies to enhance ecosystem performance and accelerate the region’s economic growth.

Entrepreneurship ecosystem handicrafts thematic analysis