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Entrepreneurial ecosystem p2 6 forces


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Entrepreneurial ecosystem p2 6 forces

  1. 1. The EntrepreneurialEcosystemPart 2: Dr. Michael R. Burcham6 Forces thatAccelerate or Destroy e. michael@michaelburcham.comthe Entrepreneurial w. t. of a Community f. l. www.linkedin/in/michaelburcham
  2. 2. 1 The Talent Index Regulatory Index Talent Index Community Cultural Index Index Infrastructure Capital Index Index
  3. 3. 1 The Talent IndexA knowledge economy is driven by educated people. Additionally, highgrowth entrepreneurship is magnified with the engagement of greatmentors and advisors.In evaluating your community’s Talent Index, key elements include:• Educational institutions (colleges, universities, trade schools)• Growing pool of high school graduates, bachelor degree graduates and advanced degree graduates that are interested in staying within the community and contributing to the overall entrepreneurial ecosystem• Research institutions• Growing pool of technology talent• Access to experienced, successful entrepreneurs who will serve as Mentors and Advisors to early stage companies
  4. 4. 2 The Cultural Index Regulatory Index Talent Index Community Cultural Index Index Infrastructure Capital Index Index
  5. 5. 2 The Cultural IndexOne size does not fit all. Your community will need to build yourEntrepreneurial Ecosystem around you own strengths.In evaluating your community’s Cultural Index, key elements include:• The degree to which your community encourages risk taking• How does the community value of launching of a business – even if it fails• How often do community leaders celebrate the startup process• Does your community encourage diversity and differing views – entrepreneurship is inherently a contrarian activity!• Number and types of meet-ups and events for the entrepreneurial and startup community
  6. 6. 3 The Capital Index Regulatory Talent Index Index Community Cultural Index Index Infrastructure Capital Index Index
  7. 7. 3 The Capital IndexEarly stage capital is ALWAYS scarce – so get used to it! Building accesspathways to capital for the most compelling “investable stories” will taketime, but is an essential part of any entrepreneurial community.In evaluating your community’s Capital Index, key elements include:• Presence of seed capital and angel financing - and a growing angel community• Lending and banking organizations focused on entrepreneurial ventures• An active SBA that is connected with the community• Access to venture capital• Active and engaged private foundations
  8. 8. Attracting InvestorsThe ability of a community to attract capital becomes a critical piece ofgrowing the Entrepreneur Ecosystem. If local capital is notavailable, startup companies will often “follow the money” and movetheir operations to the locations where financing is available.Factors That Tend to Drive Investor Interest in a Community:• An improving entrepreneurial environment• A strong R&D climate supported by the government• Growing market• Effective tax policies that encourage risk taking and investment• Lower cost environment for operations
  9. 9. 4 The Infrastructure Index Regulatory Index Talent Index Community Cultural Index Index Infrastructure Capital Index Index
  10. 10. 4 The Infrastructure IndexFew startups can succeed without great support and reasonableinfrastructure. This is a wide area for discussion and should be as inclusiveas possible.In evaluating your community’s Infrastructure Index, key elements include:• The engagement in the process by local universities and trade schools.• The degree of support and engagement of attorneys, accountants, advisors, bankers, outsourcing firms (HR, Payroll), Chambers, local industry trade groups.• The visible support of serial entrepreneurs, and experts on topics such as operations, marketing, sales, and financial modeling.• Basic infrastructure access such as broadband networks, logistics, transportation and reasonably priced work space.
  11. 11. 5 The Community Index Regulatory Index Talent Index Community Cultural Index Index Infrastructure Capital Index Index
  12. 12. 5 The Community IndexUnlike other countries, where business policy is centrally planned, in theUS, many policies and decisions are shaped & implemented at the locallevel. There are 74,000 local governments. Local leaders mustdeliberately choose to invest in the future, be entrepreneurial and build thepartnerships necessary to harness the strengths of the community.In evaluating your Community Index, key elements include:• The single most important factor to get “right” is education• Access to affordable housing• Quality of Life – Arts, Diversity, Parks, Sense of Community• Tolerance for Risk Taking• A progressive, entrepreneurial mindset of leaders
  13. 13. 6 The Regulatory Index Regulatory Index Talent Index Community Cultural Index Index Infrastructure Capital Index Index
  14. 14. 6 The Regulatory IndexGovernment can serve a significant role in removing barriers toentrepreneurship and being a collaborator with the various organizationsand individuals who will invest their time, expertise and capital to create thelocal Entrepreneurial Ecosystem.In evaluating your community’s Regulatory Index, key elements include:• Focus on economic development• Public infrastructure – logistics, transportation, housing• Tax policy that encourages entrepreneurship and early-stages investment• Community and government leadership that is supportive of innovation and entrepreneurship• Government support of an R&D climate• Cost of living
  15. 15. A Community mustevaluate andunderstand theseforces and determine Regulatory Talent Index Indexif they currentlyencourage ordiscourageentrepreneurship within the community. Community Cultural Index IndexIf you want totalclarity – simplyAsk the Infrastructure Index Capital IndexEntrepreneurs