A big welcome to our guest contributor, Norris Krueger, PhD.
Are there any communities on earth who do not want a strong entrepreneurial ecosystem? Are there many communities who actually know what that means? Or have any idea how to get there? Only a handful.
Everyone from the UN to the OECD to national, state and city governments are struggling, however, with the very definition of the phrase, struggling to conceptualize it in terms that allow them to understand the basic mechanics of an entrepreneurial ecosystem and thus how to move forward. For example, the OECD recently convened a major workshop for leading economic development officials and top scholars to assess the state of the art of what we know about entrepreneurial ecosystems – what they are, how to measure and how to develop them.
Entrepreneurship has become front and center not only in economies but also in society. It is almost inconceivable that a briefing on economic policy would not include the resonant call for communities to build [reinforce] their “entrepreneurial ecosystem”.
However, only rarely do they define what they mean beyond “more startups” or maybe “more small businesses”, leaving policy makers on the ground struggling with the practicalities of constructing a healthier entrepreneurial ecosystem.
However, as the metaphor suggests, an ecosystem is characterized by dynamism and interconnectivity. How do the various components of an entrepreneurial economy work together (or not) to grow startup communities?
For example, research from the Global Entrepreneurship Monitor and elsewhere is persuasive that a healthy entrepreneurial economy requires three primary ingredients, often labeled cognitive, normative and regulatory. The “cognitive” dimension reflects entrepreneurial human capital. How many people really understand what it takes to launch a venture? How many perceive themselves as personally prepared for entrepreneurship? The “normative” dimension reflects entrepreneurial social capital. Are local social norms supportive? Do politicians, media, even the person on the street support entrepreneurial activity? (The classic question is “What would your mother say if you started a business?”) The “regulatory” dimension reflects a form of entrepreneurial political capital. How hard (easy) do policies make it to start a business? To run a business? To grow a business?
So what CAN we do?
1. Identify tactics that YOU can use in your own community. Right now. For little cost. And if you are serious, then connect with the experts who can help you along. One place to find top experts is…
2. Come to ICSB! Among the many submissions to ICSB, one proposal is to assemble a “Dream Team” of experts on different facets of the entrepreneurial ecosystem. This team represents 8 countries and 3 continents and includes experts from government, academe, and the all-important entrepreneurial community!