The craft of entrepreneurship is observing creative avenues for success. People are finding their path towards entrepreneurship in new ways. Entrepreneurs put their “art” into the startup. There is no right way formulated to succeed as a startup, and that is why the people who start startups are characterized by flexibility, adaptability, and the ingenuity to do business out of an idea. Entrepreneurship does not occur in isolation or silos, but by collaboration and community and may require more than that.
Entrepreneurs throughout the world seek supportive environments that through contiguity provide collaboration, culture, and resources that encourage entrepreneurial pursuit and reward innovative mindsets. The administration of new ventures gets strongly influenced by something much higher than the business itself: the surrounding ecosystem. Essential constituents which are fundamental for a startup success encompass appropriate talent, solid marketing strategy, funding of startup and the most important is the supportive government ecosystem with better policies, laws, and regulations. Without them, it’s uncannily difficult to start a business. To thrive, entrepreneurship needs a supportive ecosystem of compromising factors ranging from infrastructure to financial access to supportive government policies. A government is the single biggest enabler for the entrepreneurial ecosystem, play a vital role in ease of doing business and supporting companies to start and expand.
The big question is, what exactly is an entrepreneurship ‘ecosystem’, a perfect blend of attitude, resources, and infrastructure? An article published in 2010 by Professor Daniel Isenberg from Babson College helped to boost the awareness of the concept. Isenberg outlined various constituents for the totality of an entrepreneurial ecosystem. According to Professor Daniel, ecosystem should be built on regional conditions. Expand existing industries and build on their foundations, capabilities, and skills instead of trying to launch high-tech industries from scratch.
Beginning a new company is the easy part, and successfully expanding it is the challenge. The primary focus should be on encouraging sustainable, growth-oriented and innovative firms not just cultivating more start-ups.
At the center of an entrepreneurial ecosystem typically there is at least one, and usually many, ‘large established businesses,’ with important management functions as well as undertaking R&D and production activities. These firms will also be rich in technology. They play important roles in strengthening the ecosystem. They are ‘talent magnets,’ hiring large numbers of skilled employees, and many of them are recent graduates, irrespective of their field. They provide necessary training to their workers and allow them to advance up the corporate hierarchy. It is through this procedure that staffs who were initially hired for their technological know-how acquire management skills to become technology managers. This exemplifies a propitious resource for small firms. They are also a source of new businesses as few of their staff will leave to start their own company.
Government plays a decisive role in cultivating enterprise and innovation. Their role is to direct the public departments and agencies to focus on the problem and develop effective policies. It makes a good economic reason for governments to implement policies that encourage business growth since most of the business being conducted by new entrepreneurs. The major five ways in which government can have the highest positive effect are by making capital more accessible, promoting entrepreneurship, facilitating business education, protecting intellectual property, and reducing regulatory burdens.
Banks never directly engage or interact with entrepreneurs, and they help financial markets mature and indirectly impact the entire value chain of investing which makes them relevant for the entrepreneurship ecosystem. Bankers make a lot of money investing in somewhat later stage technology companies, which in turn increases the confidence of early stage investors that if their investments grow, they would obtain the capital to fuel their expansion.
Most of the leaders are unsure about exactly how to start creating the programs, policies, and culture to draw out the entrepreneurial spirit that almost always is lurking beneath the surface. Leadership programs like BEEP are must in every region. The Babson Entrepreneurship Ecosystem Project is directed by Professor of Entrepreneurship Practice Daniel Isenberg, a renowned authority on entrepreneurship around the globe, and a former Harvard and Columbia Business School professor, entrepreneur, and venture capitalist. It stimulates and supports entrepreneurship, fostering an entrepreneurship ecosystem in which development oriented entrepreneurial businesses can thrive.
Today, it’s crucial to understand the best practices in fostering entrepreneurial ecosystems, which helps inform the participatory and democratizing potential of technology. In turn, that can lead to widespread adoption of digital technologies and services accompanied by a global surge in economic development.