Collaboration among various institutions, along with the right conditions, fosters the development of the entrepreneurship and innovation ecosystem . Today at Hispanos Emprendedores, we define this concept and analyze who comprises it. Keep reading to better understand this topic.
What is the entrepreneurial ecosystem?
This concept refers to all the elements that facilitate entrepreneurship and innovation in a region or town. It means that in this place the right conditions exist for the creation of companies. As well as to guarantee the sustainability of these in the future.
The entrepreneurship ecosystem functions, then, as a community. This has the participation of companies, institutions, governments, funders, among other elements. Together they create and promote projects aimed at delivering added value to society.
For the entrepreneurship and innovation ecosystem to function, coordination among all its elements is essential . And the benefits will become real as this system operates smoothly.
An entrepreneur who finds institutions willing to help her, mentoring, education programs, access to financing and laws that help her carry out her project, is faced with an ecosystem that works. In addition, this will have an expansive effect and will promote other ventures.
Among the leading entrepreneurial ecosystems in the world are:
- Silicon Valley. It is the maximum reference, with which everyone wants to compare themselves.
- NY.
- The Angels.
- Tel Aviv. The first outside the United States and with rapid growth.
- London. It is the first in Europe.
Boston, Berlin and Singapore are others that stand out. For Latin America we find Sao Paulo among the main in the world. However, the region as such has great potential that the Pacific Alliance is trying to boost. But to achieve this, the profound differences between the different countries must be overcome.
Who forms the ecosystem of entrepreneurship and innovation?
This community has several components or elements that we define below:
- Incubators or accelerators. These are institutions that are dedicated to helping entrepreneurs. They offer them their knowledge to shape the project. They usually accompany them from the beginning, but it can also be in more advanced stages.
- Investors. They are the ones in charge of providing the capital so that entrepreneurs can carry out their projects. These institutions are in charge of financing businesses, but they look for innovative projects, with a projection of rapid growth.
- Support organizations. It refers to those associations that are dedicated to promoting the system. They facilitate the creation of contact networks that are essential to carry out any undertaking.
- Events. Meetings of this type also contribute to networking. As well as to participate in informational and training spaces.
- Government institutions. For an entrepreneurial ecosystem to function, government participation is essential. This must establish measures that facilitate the creation of companies, as well as their expansion. They should offer support rather than limitations.
- Educational institutions. Through these, training is given to entrepreneurs and society in general to promote development and provide knowledge on business management. Experiences are also shared to learn from what others have done. This includes business schools, research centers, universities, etc.
Specialized media outlets also contribute to the development of entrepreneurship.
Conditions for a good entrepreneurial ecosystem to emerge
If we analyze the actors that participate, we will identify the variables that must be present for a good entrepreneurial ecosystem to exist.
We start with the presence of entrepreneurs, people who are willing to create and innovate. You must know how to identify needs, take advantage of the infrastructure and conditions that are around you and be willing to learn constantly.
This brings us to the next point, which is educating for entrepreneurship. This must be done at all academic levels, but specific training must also be provided.
In addition, public policies are needed to facilitate entrepreneurship. This includes research programs, support institutions, financial support, friendly legislation, among others.
On the other hand, there is access to financing, which is one of the frequent problems to undertake. Access to venture capital, loans from private institutions, angel investors, among other alternatives, will facilitate the development of projects.
In a good ecosystem there is market opening, access to telecommunications, transport and logistics infrastructure. As well as entrepreneur support networks.
It's also important that established businesses are willing to innovate. An entrepreneurial ecosystem cannot exist without companies willing to integrate and work on new projects.
Another condition that must exist is to promote the culture of entrepreneurship. Society also participates because it creates social norms such as the drive for innovation or tolerance for risk.
The presence of an ecosystem of entrepreneurship and innovation will allow you to identify opportunities and provide support to carry out your project. If you find these conditions in your area, it will be positive for your company.
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