CEED: What We Recommend
Adopting A Measurable Framework
We recommend that public and private stakeholders, led by the City of Little Rock, construct and adopt a comprehensive framework in the next iteration of the Community Economic Ecosystem Design. We refer to Daniels Isenberg’s “Domains for an Entrepreneurial Ecosystem” to guide the development of a sustainable strategy. Isenberg’s formulas suggest government involvement to initiate the design, until a point at which government involvement can and should be, not eliminated but, significantly reduced.
This framework suggests the creation of six strong, mutually reinforcing domains that do not require ongoing public investment to sustain them. However, we recommend that the framework deeply consider and account for barriers noted in this report; in fact, the evidence of barriers should be not only a priority, but the premise around which the framework is constructed. To achieve equitable outcomes beneficial to the entire ecosystem, we believe that the best approach will ensure inclusion in the drawings of its architecture.
The outcome of this framework should establish benchmarks that track and measure the performance of the ecosystem over time.
Organizing An Ecosystem Roadmap
Though entrepreneurship ecosystems often emerge under a unique set of conditions, designs of of successful entrepreneurship ecosystem development frameworks currently exist.
We, again, refer to Daniel Isenberg’s influential approach on structuring an entrepreneurship ecosystem design.
Isenberg’s approach constitutes a novel and cost-effective strategy for stimulating economic prosperity. This strategy has been adopted as a “pre-condition” for the successful deployment of sustainable strategies, innovation systems, knowledge economy, or national competitiveness policies across many growing ecosystems.
Isenberg identifies six general domains within the entrepreneurial system that frame a proper roadmap for success:
- A conducive culture
- Enabling policies and leadership
- Availability of appropriate finance
- Quality human capital
- Venture-friendly markets for products
- A range of institutional and infrastructural support
Intentional Commitment to Equity
True inclusion in entrepreneurial ecosystems requires the intentional development and evolution of resources, spaces, and organizations that span differences to create cultures of belonging, shared power, and access across all demographics. This approach expands the reach of inclusion to historically and regionally marginalized individuals, communities, and cultures.
A commitment to equity requires the intentional engagement of underrepresented groups. We recommend a process, prioritizing the aforementioned commitment, that engages underrepresented entrepreneurs in underserved communities of varying backgrounds and experiences. Such planning should provide actionable metrics to support the development of programs, spaces, and funding sources committed to growing and scaling women founders and founders of color, in particular.
Case Studies
MORTAR, Cincinnati
Demographics that have historically struggled to own and sustain businesses are starting to soar in Cincinnati, Ohio, thanks to programs like MORTAR Cincinnati. MORTAR is a community-focused incubator program building businesses in neighborhoods across Cincinnati. Since its inception in 2015, MORTAR has successfully graduated over 250 entrepreneurs from their entrepreneurship academy. The program is a beacon for diversity in the region, with 87 percent of graduates being African-American and 67 percent women. Seventy-one percent of MORTAR alumni are still in business.
MORTAR’s unique approach focuses on “building where you are,” helping local entrepreneurs build businesses in their own community. They do not recruit from outside of Cincinnati, instead focusing on the creation of neighborhood sites and a culturally-competent 15-week business training program. After graduating from the program, MORTAR offers alumni a funding source, called the Iron Chest Fund, that gives low-interest small-business loans and a few grants to program graduates. MORTAR also operates four pop-up locations to help entrepreneurs test their products, earn revenue, and learn valuable lessons about their business model.
MORTAR is now expanding across the nation, piloting programs in Milwaukee, Kansas City, and Covington, Kentucky.
Blue Lacuna, Chicago
In 2016, tech-focused coding academy Blue1647 and arts-centered Lacuna 2150 combined to form Blue Lacuna, a world-class, innovative space where diversity meets technology on the Southside of Chicago. The 250,000 square-foot space offers everything from co-working spaces to recording studios, a green room for film, and even a fashion incubator. The tech incubator, led by Emile Cambry, was running out of room to teach coding courses when the opportunity to partner with Lacuna arose. The space was built to be an artisan loft for creatives, startups, and small businesses. The partnership led to an instant synchronicity and a great work-live-play destination. In addition to entrepreneurial services, Blue Lacuna offers gym access, restaurants, and a rooftop looking over the city. The successful collaboration includes partnerships with corporate giants like Google, Apple and Tedx.
In addition to providing access to an amazing space, the members also have access to The BLUEFund Reward, a community crowdfunding solution that allows companies to raise capital and awareness of new ventures with support from the region.
Start Us Up
The Ewing Marion Kauffman Foundation of Kansas City, leaders in entrepreneurial ecosystem research, development, and support, partnered with over a dozen entrepreneurship advocacy groups to launch a coalition called “Start Us Up.” The coalition addresses the flat growth of industry over the past two decades.
The Kauffman-backed coalition is releasing a policy plan called “America’s New Business Plan” to provide policymakers at the local, state, and federal levels with a bipartisan roadmap for reducing barriers to entrepreneurship and spurring more startups across the country to create new jobs as a potential recession looms large. America’s New Business Plan outlines four core categories of support that are needed yet are often denied to — or don’t exist for — entrepreneurs, especially women, people of color, and rural residents.
Start Us Up’s focus areas include:
- Opportunity: A level playing field and less red tape
- Funding: Equal access to the right kind of capital everywhere
- Knowledge: The know-how to start a business
- Support: The ability for all to take risks
