The Recipe to a Successful Entrepreneurial Ecosystem
Innovation and entrepreneurship do not exist in a vacuum. But how do jurisdictions with successful innovation and entrepreneurship-driven economies get there?
Think of them more as an ecosystem: a complex set of connected groups that interact with their environment and with one another. You know the usual suspects of innovation and entrepreneurial ecosystems, like Silicon Valley and Boston. But they don’t hold a monopoly on innovation, and no law of the universe says that successful economies can only be built in those zip codes.
So, is it possible to create a thriving entrepreneurial ecosystem without trying look over Silicon Valley’s shoulder and just copy what they’re doing?
Yes!
In fact, we know what goes into creating these ecosystems along with the high growth firms and diverse economies that they help build. Daniel Isenberg outlined the elements in successful entrepreneurial and innovation ecosystems, and it boils down to have 6 areas all pulling in the same direction, with distinct categories within them. They are:
1. Policy
2. Finance
3. Culture
4. Support
5. Human Capital, and
6. Markets
A full breakdown is available in the graphic below.
Cities, provinces, and countries that can marshal resources in these areas and successfully drive them towards a clear vision are the ones that will succeed. This approach can create an entrepreneurial ecosystem and resulting economy that are unique to each jurisdiction, leveraging their respective strengths and contexts.
