Increasing the number of successful growth companies is a major focus for policy makers in developed countries. However, existing approaches are proving ineffective. Simply creating traditional supportive conditions is insufficient.

The entrepreneurship ecosystem approach has emerged as a response.

Creating safe environments for small businesses and startups to grow will also result in an increase in successful growth companies.

Entrepreneurship Ecosystem: Definitions and Value

Globally, entrepreneurship can solve issues related to economic growth, stability and other problems related to the well-being of countries. Trends are shifting from requirement-based entrepreneurship to opportunity-based, meaning entrepreneurs are seen as creators and catalysts within the ecosystem of economies.

The entrepreneurial success and impact are affected by the environment they are operating in, for example, governments, partner companies and marketplaces.

We call this collection of entrepreneurs and their environment the entrepreneurship ecosystem. It is interconnected with other existing ecosystems and acts as a catalyst for change and positive impact.

Definition of an entrepreneurship ecosystem

What is an entrepreneurship ecosystem?

The entrepreneurship ecosystem is a blend of social, economic, cultural, and political components within a country, region or globally.

Distinguishing features of entrepreneurial ecosystems include the following:

• a core of large established businesses, including some that have been entrepreneur-led (entrepreneurial blockbusters);
• entrepreneurial recycling – whereby successful cashed out entrepreneurs reinvest their time, money and expertise in supporting new entrepreneurial activity;
• an information-rich environment in which this information is both accessible and shared.

A key player in this context is the dealmaker who is involved in a fiduciary capacity in several entrepreneurial ventures.

Within the ecosystem of entrepreneurs and their supporters, everyone is linked to each other and is collaborating in some way. This way the entire system co-exists with other ecosystems and empowers entrepreneurs to take action.

In an entrepreneurial ecosystem, both public and private sectors are involved, which expands the potential of the system as a whole.

What are the elements of an entrepreneurship ecosystem?

The entrepreneurship ecosystem consists of a dozen or so elements (see diagram) that are always present if entrepreneurship is self-sustaining.

So, although the combinations are always unique, in order for there to be self-sustaining entrepreneurship, you need all of the core elements present: conducive policy, markets, capital, human skills, culture, and supports.

Together these specific elements act as a “precondition to cluster strategies, innovation systems, knowledge-based economies, and national competitiveness policies” (Daniel Isenberg, PhD, Entnest member)

Read more here:

http://www.innovationamerica.us/images/stories/2011/The-entrepreneurship-ecosystem-strategy-for-economic-growth-policy-20110620183915.pdf

What makes a good entrepreneurial ecosystem?

A good ecosystem for entrepreneurs is one where people

• Can trust each other,
• Share their ideas, frustrations and wins freely,
• Learn from one another.

It is crucial for real human connection to happen, as together entrepreneurs and their supporters can achieve more than by operating individually. Moreover, a good ecosystem has access to the right tools needed for both parties to communicate and collaborate effectively.

The impact of an entrepreneurship ecosystem

An entrepreneurial system has a positive impact not only economically but also socially on the region where it is established. People can spend time on projects they enjoy and deliver value to the community.

A higher amount of projects creates job opportunities and access to other resources for society and the government. Thus, entrepreneurship can potentially solve a wide array of issues in the existing ecosystems and boost creativity, innovation and well-being in the region.

Why is an entrepreneurship ecosystem important?

The entrepreneurial ecosystem is extremely important when talking about innovative solutions being brought to the market and society. Furthermore, it is important as a source of job creation, as well as a catalyst towards positive sustainable change.

Entrepreneurs can adapt to changing environments and implement SDGs in their strategies often faster than the multinationals that exist in the same environment.

The ecosystem acts as a nurturing place for newly established entrepreneurs and businesses, enabling them to grow and learn in a ‘protected’ space. This is critical in making sure new businesses make it through their vulnerable infancy phase and develop into successful growth companies.

What are the benefits of an entrepreneurship ecosystem?

The ecosystem is beneficial first of all for aspiring and established entrepreneurs and startups. It provides them with the needed support and resources in the early phases of their projects. This includes for example financial support, access to talented human capital and a favourable legal environment.

A functional ecosystem also benefits the government and the community by providing new solutions to issues, creating jobs and solving other social problems.

The Entnest entrepreneurial ecosystem

Entnest is an all-in-one platform for the entrepreneurship ecosystem. We focus on nurturing trusted human collaboration on a digital platform.

We believe that through communication and collaboration, entrepreneurs and their supporters can understand each other’s needs and help each other more effectively.

Entnest was built to create synergies locally and globally, in order to build a more prosperous and sustainable world. We do this by bringing together entrepreneurs and support organizations in an invite-only community, providing access to all needed tools and resources in the same place.

The goal is to enable improved communication and collaboration not only within networks but also across networks, to truly leverage global potential.

Entnest members benefit both from a curated global network, as well as from being able to focus on using the tools on Entnest, rather than looking for and switching between different collaboration tools.

With entrepreneurs and support organizations from more than 50 countries already, Entnest is well on its way to becoming one of the leading global drivers for the sustainable development of entrepreneurship as the future of work.