Entrepreneurship ecosystem

An entrepreneurial ecosystem or entrepreneurship ecosystem is the social and economic environment affecting the local or regional entrepreneurship. Businesses located within places serving as incubators for creativity, innovation, and entrepreneurship have a greater chance of success. An entrepreneurial ecosystem or entrepreneurship ecosystem is the social and economic environment affecting the local or regional entrepreneurship. Businesses located within places serving as incubators for creativity, innovation, and entrepreneurship have a greater chance of success. Almost all of the globally successful company formations of the last decades, such as Apple, Yahoo, Google and Facebook were located in one of only two startup ecosystems in the USA - Silicon Valley and Boston. In recent years these tech entrepreneurship ecosystems have been duplicated all over the world and can be : in the USA, New York, Chicago, Austin, and Seattle; and globally, Tel Aviv, Singapore, London, and Berlin. This has led to a series of research papers detailing the characteristics: Suresh, J. and Ramraj, R., 2012 , Uddin, M., Hindu, R.C., Alsaqour, R., Shah, A., Abubakar, A. and Saba, T., 2015 and Bloom, P.N. and Dees, G., 2008 It can also be a group of companies, including start-ups, and one or more coordination entities, which share similar goals and decide to form a network or organization in order to explore economies of scale combined with flexibility and entrepreneurial 'drive'. Economies of scale can be explored in business functions such as business development, financing, market analysis, marketing communications, IT / MIS infrastructure, human capital management, legal support, financial & accounting management while each participating start-up focuses to research & development, product Management, sales & pre-sales / after-sales support. The concept of the Triple Helix of University-Industry-Government relationships developed in the 1990s by Etzkowitz (1993) and Etzkowitz and Leydesdorff (1995) lead to a range of government policies which developed local entrepreneurial ecosystems. Some researchers believe governments have little effect to create an ecosystem for entrepreneurship. Nonetheless, the entrepreneurial ecosystem idea does lend itself to entrepreneurship policy, where targeted programs can be developed to plug the gaps in the ecosystem. For example, advisory programs have had some success. 'Ecosystem' refers to the elements – individuals, organizations or institutions – outside the individual entrepreneur that are conducive to, or inhibitive of, the choice of a person to become an entrepreneur, or the probabilities of his or her success following launch. Organizations and individuals representing these elements are referred to as entrepreneurship stakeholders. Stakeholders are any entity that has an interest, actually or potentially, in there being more entrepreneurship in the region. Entrepreneurship stakeholders may include government, schools, universities, private sector, family businesses, investors, banks, entrepreneurs, social leaders, research centers, military, labor representatives, students, lawyers, cooperatives, communes, multinationals, private foundations, and international aid agencies. In order to explain or create sustainable entrepreneurship, one isolated element in the ecosystem is rarely sufficient. In regions which have extensive amounts of entrepreneurship, including Silicon Valley, Boston, New York City, and Israel, many of the ecosystem elements are strong and typically have evolved in tandem. Similarly, the formation of these ecosystems suggests that governments or societal leaders who want to foster more entrepreneurship as part of economic policy must strengthen several such elements simultaneously. However, recent research shows that government policy is often limited in what it can do to develop entrepreneurial ecosystems. In July 2010, the Harvard Business Review published an article by Daniel Isenberg, Professor of Entrepreneurship Practice at Babson College, entitled “How to Start an Entrepreneurial Revolution.” In this article, Isenberg describes the environment in which entrepreneurship tends to thrive. Drawing from examples from around the world, the article proposes that entrepreneurs are most successful when they have access to the human, financial and professional resources they need, and operate in an environment in which government policies encourage and safeguard entrepreneurs. This network is described as the entrepreneurship ecosystem. The Babson College Entrepreneurship Ecosystem Project then categorizes this framework into these domains: policy, finance, culture, supports, human capital and markets.