Balancing all entrepreneurial ecosystem elements is essential. Ecosystems can be located anywhere and come in all shapes, sizes and types. Reliable, repeatable, successful results are only possible if the critical driving elements are in balance.
KNOWING YOUR ECOSYSTEM STREGTHS/WEAKNESSES, HOW TO BALANCE ESSENTIAL ELEMENTS, AND WHERE TO FIND CROSS-ECOSYSTEM RESOURCES CAN HELP YOU ACHIEVE CONSISTENT TRANSFORMATIONAL RESULTS
Entrepreneurs Make Things Happen
No matter where you look, the world’s innovators, risk-takers, and business builders are powering economies, creating jobs, and raising living standards for everyone. These are entrepreneurs. They find and develop products and services that add some type of value to the community.
Entrepreneurs Can’t Operate In A Vacuum
No entrepreneur can discover opportunities, build teams, grow and succeed on their own. They must be part of a complex system of advisors, employees, service providers, suppliers, funders, distributors, and more. All entrepreneurs exist in an ecosystem much like a biological ecosystem similar to a pond, river, or ocean. The array of elements of that ecosystem define survival for all.
Entrepreneurial Ecosystems Come In All Shapes And Sizes
Ecosystems can be regional covering many countries. They can be at the city or state level. They can also be micro-ecosystems, suitable for an individual business incubator/accelerator or operating business. Anywhere from a few stakeholders to many thousand stakeholders, they are all ecosystem participants.
Ecosystem Stakeholders Are The Oxygen
All biological ecosystems, even oceans, need some form of oxygen to thrive. For entrepreneurial ecosystems stakeholders provide that required oxygen. Stakeholders are the people who matter most in the ecosystem. Their consistent engagement and participation keep things moving forward. Stakeholders range from educators, accountants, lawyers, and angel investors, to the government officials who set and enforce the rules of the business game. Stakeholders, both directly and indirectly, drive the essential elements that define the ecosystem.
The Right Essential Ecosystem Elements Lead To Success
Ecosystem elements fall into five general categories; (1) Selection – How ecosystem participants are selected, (2) Education – How participants attain knowledge, (3) Community – The ongoing individual involvement and engagement in the ecosystem, (4) Mentors – The specialists and experienced entrepreneurs who guide and advise participants, and (5) Funding – The angel investors, banks, government agencies, venture capital firms and others who provide capital to ecosystem companies. There are over two hundred individual elements spread over these categories.
When Balanced These Elements Create Incredible Synergies
Too much of one set of elements with not enough of another leads to frustration, failure, and collapse of the ecosystem. What happens when an ecosystem is overflowing with funding but has no qualified mentors? What happens when a solid, well-rounded education program exists, but the selection of ecosystem participants crowds out the best entrepreneurs? And worst of all, the ecosystem can appear to be functioning, but the lack of a vibrant, engaged community acts as a perilous cliff for ecosystem participants. It is all about the optimal balance of these elements.
Which Elements Are Needed And Which Are In Excess?
Ecosystem leaders, stakeholders, and participants can be too close to identify missing elements are missing and wasteful surplus levels. An ecosystem inventory will help identify areas needed for better balance. A clear one to five-star rating will serve as a quick indicator for all stakeholders on the general health of the ecosystem.
Cross-Ecosystem Resource Sharing
No ecosystem has everything it needs for sustainable growth. With ecosystems worldwide, this is at least one is out there with a surplus in the area you need most while they may need something you have. For example, they might have many qualified mentors to help your ecosystem, and you may have easy access to specific markets. Matching these resource elements between ecosystems can be an incredible catalyst.
Is your Entrepreneurial Ecosystem balanced for maximum results?
How many Stars would your ecosystem score?
Over 230 elements determine your score, but there might be a faster way.
How many Stars would your ecosystem score?
Over 230 elements determine your score, but there might be a faster way.
Selection
The process you use to add participants to your ecosystem is the first step to building a strong presence. Do you accept anybody at any time, or do you provide some hurdles to overcome? For example, do you use a two- or three-week short duration program to screen people to determine how the team members work together, if the team can work with mentors, and if they have a strong work ethic and deep passion for their business idea?
Education
Very few people have the business knowledge required to start and operate a company. Your ecosystem education program can bridge knowledge gaps to reduce frustration and failure. Design Thinking principles, Intellectual Property protection, and product/market fit can all make a difference.
Community
Community keeps entrepreneurs going. The ideal community is a place where successful business people volunteer to lecture, risk-taking is celebrated, there is a 30+ year history of entrepreneurial culture, stakeholders meet regularly to share experiences and tell stories about their individual journeys, and there is a generally positive Government policy climate plus strong rule of law.
Mentors
The specialists and experienced entrepreneurs who guide and advise participants. Mentors matched to the type of entrepreneurs starting businesses in your ecosystem. They have deep 15+ years of relevant experience, are people who have created successful companies, and have experience guiding teams through branding/positioning and pivoting their ideas for a better product/market fit.
Funding
Ready sources of investment capital, including Angel investors and successful ecosystem entrepreneurs ready to provide seed capital, banks when certain conditions are met, Government agencies and other non-profit organizations, and venture capital/private equity firms.
Cross-Ecosystem Sharing
No ecosystem has everything it needs for sustainable growth. Cross-ecosystem resource sharing can make a big difference. With ecosystems worldwide, at least one is out there has a surplus in the area you need most while they may need something you have. Matching these resource elements between ecosystems can be an incredible catalyst.
Four ways to get started improving your entrepreneurial ecosystem.
Sometimes ecosystem leaders, managers and stakeholders can be too close to see how turning a few dials can better balance their ecosystem for better results. Why not discover the secret to fine-tune your ecosystem?
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For good ideas and true innovation,
you need human interaction,
conflict, argument, debate.
you need human interaction,
conflict, argument, debate.
– Margaret Heffernan
Entrepreneur, CEO, writer and TED speaker
Entrepreneur, CEO, writer and TED speaker
