My observations since 2005Netherlands• Entrepreneurship is increasing in popularity,but: • Few have the ambition to grow • Few develop (scalable) products or servicesSilicon Valley (visits in 2009, 2010, 2011)• Entrepreneurship is a way of life• The environment is designed for the startup
Data from the Netherlands• Highest score on Total Early-stageEntrepreneurial Activity (GEM, 2011)•70% of new businesses is categorized as ZZP(KVK, 2011)• Below average score in innovation andbusiness growth (GEM 2011; CBS 2012)
Academic studies• “Growing companies are the realcontributors to innovation, jobs and economicdevelopment” (Acs 2011; Henrekson, 2009)• “Encouraging more people to becomeentrepreneurs is bad policy” (Shane, 2009)• “The more business owners the merrier?”(Van Praag, 2010)
Study outlineProblem statementIn NL there is no need for more entrepreneurs butmore entrepreneurs that develop innovativeproducts and have the ambition to grow.Research questionWhat do these type of entrepreneurs need to growtheir business? An analyses between ICT startupsfrom Silicon Valley and the Netherlands
An explorative studyOpen interview and two samples:• Sample 1: 12 startup entrepreneurs and 4 expertsbased in Silicon Valley• Sample 2: 12 startup entrepreneurs and 4 expertsbased in the NetherlandsCriteria of the subjects• It is a startup “An entity designed to deliver ascalable product or service under uncertainconditions (Ries, 2011)”• Active in software or Internet industry•< 3 years old•< 50 employees
Study limitationsThe findings are indications• The samples were small•Findings can not be generalizedOnly main findings are presented• Open interviews provided a lot of otherinformationThe findings are not an indication of good/bad• Similarities and differences are measured,not the performance in SV and NL
Findings: entrepreneurial motivationThe will to create something• The main reason to become an entrepreneuris the will to create something.Difference in incentive• In SV entrepreneurs seem to start because itis something they always wanted to dowhereas in NL entrepreneurship accidentallycrossed their path.
Findings:A battle for resourcesResources to survive•Velocity is necessary to outperformcompetitionCompetitive advantage•Reputation, track record or network of theentrepreneurDynamic network environment• The network is a dynamic market place forresources
Findings:expectations• The principle: Paying it forward•The bigger the network the moreopportunities• Employees and partners share the risk, butalso success
Summary: My lessons learned• In SV starting a startup is an obvious career path. Most Dutch entrepreneursthe startup accidentally crossed their path.• Acquiring resources is essential for survival in a high speed ecosystem likeSV. In NL the pace is much slower, making the race for resources lessnecessary.• Investors, employees and partners work on expectations. They are willing toshare the risk, but you have to make them part of you startup.
ImplementationOpening of Launch Café – April 16th 2012Launch Café“The epicenter for startups in Groningen”#LaunchCaféprovides:#Facilities: Workspace and more#Finance: Pre seed, loan, subsidy#Knowledge: Support services, etc.#Network: Introductions, events, parties#LaunchCaféprinciples:#FocusOnStartups #HaveExamples#AccessResources#PayingForward #SharedRevenues
ImplementationCo-entrepreneur in Tvilight BVSpin out TU Delft“Intelligent streetlights, reducing energy consumption”#LaunchCaféprovides:#Facilities: 3 desks & other facilities#Finance: Preparing the 1st VC round#Knowledge: Strategy, finance, operations#Network: Introductions, events, parties#LaunchCafégets:#Fixed fee for use of facilities.#ShareSuccess for invested time, knowledgeand network
Point for discussion• Does the Netherlands have an entrepreneurial ecosystem or are there onlylocal bubbles? (Bianca)• Is the pay it forward culture in Silicon Valley suitable in the Netherlands?(Beth)• How can we stimulate and support “better” entrepreneurship instead of“more” entrepreneurship? (Niek)