Building a Start-up Ecosystem from Scratch — Six Things I’ve Learned
Coming to Liberia in the spring of 2010 was something of a jump into the deep end for SPARK, and for me personally. SPARK has supported entrepreneurship development in post-conflict societies since 1994. But supporting business incubators and entrepreneurs after the conflict in the Balkans was one thing. Going to one of the world’s poorest countries, after one of the most destructive civil conflicts in recent history, was going to be another thing entirely. I realized SPARK would need to work particularly hard at adapting to the broken and dysfunctional state of most institutions in Liberia in order to successfully support entrepreneurs. We wanted to offer new opportunities where the vast majority of livelihoods had been devastated. In Liberia’s entrepreneurs we found the partners we needed to achieve this; strong individuals ready to rebuild their society through successful enterprises.
We started at a little space in one of the facilities at the University of Liberia. There were constant power-cuts and internet connectivity was a nightmare, but despite this, with the support of two amazing colleagues, we managed to successfully launch a business plan competition which yielded some terrific first winners too: a photo studio, a waste management company lead by an incredible young female entrepreneur, and a clothing shop. We were very proud of these entrepreneurs and the work they were doing, but we quickly realized that if we wanted to have real impact we needed to scale up our operations.
So how do you build a startup ecosystem from scratch in a place like Liberia? Here is my experience and 6 targets that got us to where we are today.
1. Quick results. We came with innovative ideas for Liberia. We were fearless in our approach. We tried to be a step ahead and push the limits with creativity. Basically, we were working with an entrepreneurial spirit. Early results were important and meant that donors paid attention to us. After some successful activities, we were able to move to a better building at the university. There, we established our own entrepreneurship centre, BSC Monrovia, with a training and computer room, and all the facilities we needed to scale up our operations. This gave us the infrastructure to have an impact on entrepreneurs, their companies, their lives, and on job creation in Liberia.
2. Tenacity. We’ve come far since those early days; ploughing through challenges and hurdles, taking risks and seizing opportunities. We’ve managed to establish four more centers at universities around the country. We have also launched an investment fund, tested and introduced new forms of coaching, facilitated access to information and supported hundreds of entrepreneurs. It is all paying off. The amount and quality of the entrepreneurs we support today is astonishing.
3. Role models. I would like to highlight one of the brilliant entrepreneurs from the Branson Scholarship, a program we developed with Humanity United and Virgin Unite. Mahmud Johnson is a great example of a young entrepreneur who is paving the way for the next generation. He started J-Palm, a company selling agro oil based beauty products. He brings employment to Liberians and is training them in modern production processes. For us, this is what impact looks like. Entrepreneurs like him make incredible role models for young people everywhere. All of a sudden entrepreneurship seems tangible, and something to aspire to.
4. Coalitions. Liberia’s business climate has changed significantly since we began in 2010. There were a few policies in place to encourage business development (SME), but nowhere near the support that is there currently. The national government now organizes an annual SME conference that SPARK always participates in. The Ministry of Commerce and Industry has even set up its own SME fund called ‘LIFE’ which gives financial support to entrepreneurs. Working with these counterparts and the joint projects we implement leverages our investments and have a lasting impact.
5. Fragile states. It’s also important to recognize that entrepreneur’s profiles in fragile states will be very different from an entrepreneur in a more developed country. You get a lot more entrepreneurs out of necessity because there are simply not enough jobs to go around, so people will do anything to make ends meet. This means that many “entrepreneurs” don’t always have the natural drive and inspiration needed to be an entrepreneur. They often need more support with idea generation, basic management skills and inspiration to see the full potential of their endeavor.
6. Return on investment. Most importantly, however, you have to recognize that not everyone can be an entrepreneur. As difficult as it can be sometimes, we’ve learned to be very critical and selective when supporting entrepreneurs. We have finite resources, so we better invest in the entrepreneurs that will show a return on that investment. For us, the return on our investment is obviously jobs, growth in turnover, and livelihoods; so primarily social indicators, but it’s a return on our investment nonetheless. As “investors” in entrepreneurs, we’re responsible for achieving a healthy return on our support.
Building a start-up ecosystem in a place like Liberia is no small task. It takes time, serious effort, and a pretty high tolerance for less-than-pleasant surprises. But in the end, it’s really just about the entrepreneur. So forget donors, stakeholders, and all the rest. It’s all about the strong, creative, brilliant men and women and their innovative businesses. Entrepreneurs are the role models, the change agents, the shapers of a middle class. Find out what your entrepreneurs need to make their businesses succeed, and don’t stop until they have it.
