An “entrepreneurship ecosystem” is the linking network of institutions, attitudes, and policies that allows entrepreneurs to begin and develop businesses. This ecosystem is too complex and unpredictable to simply form from scratch. Entrepreneurship ecosystems are challenging but vital to promote. And very easy to destroy…
But how to help this ecosystem be encouraged and developed? Here are some tips ….
1. Find solutions tailored to the local Context
Avoid copying models that work on different milieus than yours. Instead emphasize on each zone’s unique needs and advantages. According to many experts, the best solutions are those tailored to the local context. For instance, U.S. financial models are not always suitable in developing or middle-income country, where the deals can be much smaller. In Egypt, the rising popularity of Islamic finance is popularizing the concept of angel investor-like deals where groups of venture capitalists group reasonable sums to finance a project, sharing the risks and the rewards. In Peru, the American styles of angel investing and private equity was unsuccessful to take off, as business there still relies heavily on trust and often on family relationships.
2. Entrepreneurship Culture is Vital
In many countries, families and educators guide the most talented young people to find secure jobs in big corporations or government, instead of taking a risk on beginning their own startups.
These attitudes should be improved in order to have a good generation of entrepreneurs. In Lebanon, Rami Shamma, with his Development for People and Nature Association, introduced an entrepreneurship curriculum in which he specifically invites parents to entrepreneurship events to alleviate their fears.
The most crucial issue in nurturing entrepreneurship, is the fear of failure, even in developed countries. This is principally true in places with weak or nonexistent bankruptcy protections where the first failure is not considered as a learning experience but as the last one.
3. Working Together is healthier for everybody
One of the great advantages of entrepreneurship is the possibility for innovation with new technologies and ways of doing business. Corporations like Ernst and Young find entrepreneurship adapted for both society and their bottom line as successful entrepreneurs develop their businesses into potential clients. This is why such corporations work with foundations, nonprofits, and other organizations to support entrepreneurship programs around the world.
Universities, working together on entrepreneurship initiatives, help cities become attractive hubs for new businesses by guaranteeing hiring skilled workers. Governments play also a very important role in the ecosystem, as long as they work together with the private sector to create satisfactory conditions for entrepreneurs and new businesses.
4. Entrepreneurs not only make money…
Entrepreneurs are the most active and pioneering part of the private sector. Many of them adopt a positive social position as a fundamental part of their businesses. Successful entrepreneurs also become angel investors and venture capitalists to fund talented new startups.