Entrepreneurship ecosystem

From Wikipedia, the free encyclopedia (Redirected from Entrepreneurship Ecosystem) Jump to: navigation, search The Entrepreneurship Ecosystem refers to the elements – individuals, organizations or institutions – outside the individual entrepreneur that are conducive to, or inhibitive of, the choice of a person to become an entrepreneur, or the probabilities of his or her success following launch. Organizations and individuals representing these elements are referred to as entrepreneurship stakeholders. Stakeholders are any entity that has an interest, actually or potentially, in there being more entrepreneurship in the region. Entrepreneurship stakeholders may include government, schools, universities, private sector, family businesses, investors, banks, entrepreneurs, social leaders, research centers, military, labor representatives, students, lawyers, cooperatives, communes, multinationals, private foundations, international aid agencies, and the like. In order to explain or create sustainable entrepreneurship, one isolated element in the ecosystem is rarely sufficient. In regions which have extensive amounts of entrepreneurship (e.g., Ireland, Israel, Silicon Valley, Route 128, Iceland, etc.) many of the ecosystem elements are strong and typically have evolved more or less simultaneously. Similarly, the formation of these ecosystems suggests that governments or societal leaders who want to foster more entrepreneurship as part of economic policy must strengthen several such elements simultaneously. In July 2010, the Harvard Business Review published an article by Babson Global Professor Daniel Isenberg entitled, “How to Start an Entrepreneurial Revolution.”[1] In this article, Isenberg describes the environment in which entrepreneurship tends to thrive. Drawing from examples from around the world, the article proposes that entrepreneurs are most successful when they have access to the human, financial and professional resources they need, and operate in an environment in which government policies encourage and safeguard entrepreneurs. This network is described as the entrepreneurship ecosystem. There are several key conditions that typically define a healthy ecosystem. The ecosystem:
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Is tailored around its own unique environment – it does not seek to be something it isn’t, like the “next Silicon Valley” Operates in an environment with reduced bureaucratic obstacles in which government policies support the unique needs of entrepreneurs and tolerate failed ventures Actively encourages and invites financiers to participate in new ventures, but access to money isn’t without barriers for those planning new business ventures Is reinforced, not created from scratch, by government, academic or commercial organizations Is relatively free from, or is able to change, cultural biases against failure or operating a business Promotes successes, which in turn attract new ventures Often is supported by dialogue among various of the entrepreneurship stakeholders

ranked #1 for the best entrepreneurship program[2] founded the Babson Entrepreneurship Ecosystem Project (BEEP) in 2009. ^ "The Entrepreneurship Ecosystem. Babson College.[6] [edit] References 1. When clusters are applied to entrepreneurship.S. and associated institutions in a particular field. Retrieved February 2009.[4][5] Business cluster – A business cluster is a geographic concentration of interconnected businesses. Retrieved September 2005.To help global leaders understand and apply the benefits of entrepreneurship ecosystems. ^ "Entrepreneurship: Best Business Schools" U. Retrieved 9 December. ^ "Clusters and the New Economics of Competition. Retrieved June 2010. 6. 5." Kauffman Foundation. News and World Report. 2010. [edit] Related Content University-based Entrepreneurship Ecosystem – In academic settings. ^ "Babson College Entrepreneurship Ecosystem Project Established" Retrieved 4 June." MIT Technology Review. 4. 2. ^ "Entrepreneurial Impact: The Role of MIT. experts agree governments should not seek to create new clusters. 3. 2010. 1998.[3] through its subsidiary Babson Global. Retrieved 1 November." Harvard Business Review. entrepreneurship ecosystems commonly refer to programs within a university that focus on the development of entrepreneurs and/or the commercialization of technology or intellectual property developed at the university level. but rather reinforce existing ones. ^ "How to Start an Entrepreneurial Revolution" Harvard Business Review. Governments often look to clusters to stimulate innovation and entrepreneurship in their region. suppliers. .

As Russia’s Yandex makes its NASDAQ splash. Although any society’s entrepreneurship ecosystem can be described using the same six domains. quality human capital. we group into six general domains: a conducive culture. The entrepreneurship ecosystem consists of six domains (see diagram). Ireland. Finland’s Angry Birds pluck $42 million from happy venture capitalists. or can we identify. Chile. for convenience. Puerto Rico. 2. not to mention StartUp America. but let’s go back to basics: What exactly is this entrepreneurship ecosystem that is generating so much buzz these days? 1. Taiwan. Colombia. Microsoft scoops up Estonia’s Skype for a reported $8. availability of appropriate finance. the entrepreneurship ecosystem consists of hundreds of specific elements that. and worked with public and private sector leaders in over a dozen large municipalities and nations including in Spain. and China’s RenRen rakes in $742 million in its NYSE debut. Our entrepreneurship ecosystem diagram shows fifty of these specific components. the conditions in which value-creating entrepreneurial ventures like these will thrive? For years I have looked at how to foster entrepreneurship in such super-venture societies as Israel.5 billion. each ecosystem is . I have written in the Harvard Business Review about some of the principles and processes that drive the evolution of entrepreneurship ecosystems. South Africa. and a range of institutional and infrastructural supports. or even cultivate. and Iceland. Is there method to this entrepreneurial madness? Are these random events. venture-friendly markets for products.Introducing the Entrepreneurship Ecosystem: Four Defining Characteristics + Comment now This is cross-posted/adapted from an Economist blog post entitled Intelligent Evolution. and Argentina. enabling policies and leadership. Actually. Each entrepreneurship ecosystem is unique.

Taiwan’s entrepreneurship ecosystem evolved in the 1990s in the context of a huge accrual of highly successful Taiwanese expatriates in the US. they are mutually reinforcing. and proximity to the European market. Specifying generic root causes of the entrepreneurship ecosystem has limited practical value. can be the catalysts without which the step change would not have occurred. 3.” that is. Scitex and Elscint stimulated Israel’s. Ireland’s ecosystem evolved in the 1980s in the context of free education.. regulatory and legal frameworks. Fairchild. 4. Entrepreneurship ecosystems become (relatively) self-sustaining. Digital Equipment Corporation in Boston. The same question can be applied to entrepreneurship ecosystems: Do they evolve naturally. in general the impacts are over a long time frame. a handful of individual people. and public leaders do not have to invest quite so much to sustain them. Whereas there is evidence that education. not eliminated. sometimes one or two. The big step changes in entrepreneurship that we witness from time to time are the results of what statisticians call “high order interactions. foreign multinationals. many variables working together. a process that blends the invisible hand of markets and deliberate helping hand of public leadership that is enlightened enough to know when and how to lead as well as let go the grip in order to cultivate and ensure (relative) self-sustainability . you can often identify one or two more-or-less-random successes that are actually very causal in evolving the ecosystem. Furthermore. and far from markets for its products. and HP helped create the Valley. and well-functioning capital markets do indeed impact the level of entrepreneurship in a society. Skype impacted Estonia’s ecosystem. China’s entrepreneurship ecosystem is evolving now in the context of diverse regional policies and a somewhat (some would argue. Because success does breed success by feeding back to enhance the six domains of the entrepreneurship ecosystem. Israel’s entrepreneurship ecosystem evolved in the 1970s with no natural resources. there is a tipping point at which government involvement can and should be significantly reduced. Success breeds success. very) totalitarian political system. native English. but reduced. Nature or nurture? I am frequently asked if entrepreneurs are born or made. what we often think of as outcomes can also be causes: in what I call the law of small numbers. So whereas it is useful to assess each regional entrepreneurship ecosystem to specify causal paths at specific points in time. Shockley. determining generic causal paths are less useful.the result of the hundreds of elements interacting in highly complex and idiosyncratic ways. or can we intelligently design them? I think a proper understanding of the nature of the entrepreneurship ecosystem gives us a clue: they are usually the result of intelligent evolution. In fact. and also weak. and Baidu was influential in China. it is critical that entrepreneurship programs are designed to be selfliquidating in order to focus on building sustainability into the environment. In fact. military necessity. Once the six domains are strong enough.

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