Handbook of entrepreneurship- Chapter 12-Entrepreneurial ecosystem and its importance for livestock entrepreneurship by Subin K Mohan

1. Chapter 12
Entrepreneurial
ecosystem and its
importance for
livestock
entrepreneurship
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2. Introduction
Entrepreneurship does not occur in isolation. It is deeply embedded in
an ecosystem of institutions, policies, cultural values, and market forces. The
entrepreneurial ecosystem approach emphasizes that a business thrives when
these diverse factors interact positively (IGNOU, 2020). In India, livestock
entrepreneurship is shaped not only by individual capabilities but also by the
strength of surrounding structures such as government support, incubators,
financial institutions, universities, and cultural acceptance. It is of paramount
importance that the entrepreneur should understand and accept this
ecosystem which is critical for entrepreneurs aspiring to build sustainable
livestock ventures.
Conceptual foundations of entrepreneurial ecosystems
The entrepreneurial ecosystem concept borrows from natural ecology,
highlighting interdependence among diverse actors (Stam, 2015). An effective
ecosystem is comprised of multiple components which includes markets,
human capital, policy support, finance, and culture that works together to
sustain entrepreneurial activity. Scholars argue that thriving ecosystems are
marked by self-reinforcement, where successful entrepreneurs recycle
resources and knowledge back into the system (Mason & Brown, 2014).
The entrepreneurial ecosystem comprises of the following actors
 Entrepreneurs (traits, characteristics and skills)
 Government agencies for making policies
 Institutional support (Research and financial)
 Incubators and accelerators
 Co-working spaces
 Mentors
 Co-founders
 Consultants/freelancers
 Events by industry association and chamber of commerce
 Markets
 Availability of human and non-human resources
 Availability of wealth and capital
Entrepreneurs (Traits, Characteristics and Skills)
At the centre of any entrepreneurial ecosystem are entrepreneurs themselves.
Their traits such as resilience, risk-taking, creativity, and vision drive the
system forward. Skills in leadership, negotiation, and problem-solving
transform ideas into enterprises. Entrepreneurs are not isolated actors; they
interact continuously with policies, markets, and institutions, shaping and
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3. being shaped by them. Their personal growth is directly linked to the health of
the ecosystem.
Government as policy driver
Government plays a central role in enabling or pressuring
entrepreneurship. Policies on taxation, credit, subsidies, and regulation set the
framework within which businesses operate (Isenberg, 2011). Government
programmes such as Rashtriya Gokul Mission, or government departments, or
State veterinary universities or state-run milk cooperatives provide essential
support. These initiatives lower the entry barriers for entrepreneurs, reduce
risks through animal health programs, and stabilize markets through
minimum support pricing. Jha (2018) reported that, in India, policy
interventions create “signal effects” that encourage entrepreneurs to engage in
high-risk sectors like livestock.
Globally, studies highlight that ecosystems with strong policy
frameworks demonstrate higher resilience. The World Economic Forum (2013)
emphasizes that predictable regulation and clear government commitment to
entrepreneurship significantly enhance ecosystem health. Policy incentives for
value-chain development and infrastructure are particularly important in
agricultural sector as mentioned by Lemelson Foundation, 2021.
Incubators: nurturing early-stage innovation
Incubators are vital components of ecosystems as they provide
structured support for idea development, prototyping, and early market testing
(Feld, 2012). In livestock entrepreneurship, incubators reduce the costs of trial-
and-error experimentation. For instance, ICAR’s agribusiness incubators
support start-ups’ in developing clean milk technologies, fortified feed, and
value-added dairy products. Incubators help entrepreneurs refine their
business models by offering mentorship, space, and linkages to research
institutions (IGNOU, 2020). International researches shows that incubators
aligned with sustainability goals significantly improve entrepreneurial survival
rates (Surana et al., 2020).
Accelerators: Fast-Tracking Growth
Accelerators differ from incubators in that they focus on scaling
businesses through short, intensive programs. They provide mentorship,
networking, and funding connections in a condensed period (Cohen &
Hochberg, 2014). In India, accelerators are increasingly supporting agri-tech
startups that integrate livestock management with digital platforms. Jha (2018)
mentioned that accelerators foster “local buzz” that attracts talent and
investors to specific regions, creating a clustering effect. International evidence
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4. shows that accelerators in food and agriculture enhance market access for
small producers and encourage technology adoption (WEF, 2013).
Financial institutions: oxygen for livestock ventures
Finance is frequently cited as the most crucial resource in ecosystems.
Livestock businesses demand high capital investment in animals,
infrastructure, and feed, making affordable credit essential. In India, NABARD
provides refinancing, while cooperative banks and microfinance institutions
offer loans tailored to small farmers. Entrepreneurs still face hurdles due to
complex compliance and high transaction costs, Jha (2018). The World
Economic Forum (2013) stresses that ecosystems require diversified financial
instruments—equity, debt, and insurance. For livestock entrepreneurs,
insurance against mortality or disease is particularly significant. Globally,
evidence shows that impact investors and venture capital are increasingly
financing agri-tech innovations that reduce risks in livestock ventures
(Lemelson Foundation, 2021). Capital fuels innovation, enabling entrepreneurs
to move from ideation to execution. Sources include angel investors, venture
capital, banks, and government schemes. Wealth creation within the ecosystem
leads to reinvestment, creating a self-reinforcing cycle. Access to finance is
deeply linked with policy support, institutional structures, and the cultural
willingness to take risks. Without capital, even strong entrepreneurial ideas
remain unrealised.
Universities and research institutions: knowledge anchors
Universities are knowledge anchors of entrepreneurial ecosystems,
supplying knowledge, skilled graduates, and innovations. In livestock
entrepreneurship, veterinary and agricultural universities develop new breeds,
vaccines, feed formulations, and processing technologies. Educational
institutions not only build human capital but also provide legitimacy to
ecosystems (IGNOU, 2020). NDDB and IRMA are examples of two academic
bodies that can anchor large-scale entrepreneurship. Globally, university
entrepreneurial ecosystems have been shown to directly enhance graduate
entrepreneurship and innovation (Ayala-Gaytan et al., 2024). So, partnerships
with universities ensure entrepreneurs stay ahead in adopting technology and
management practices.
Other institutional support systems
Co-working spaces foster collaboration, while mentors, co-founders, and
consultants offer practical expertise. Industry associations and chambers of
commerce create networking and policy advocacy platforms. Together, these
support structures bridge entrepreneurs with markets, capital, and culture,
making institutional backing a critical connective tissue in the ecosystem.
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5. Infrastructure
Physical and digital infrastructure underpins entrepreneurial activity.
Reliable transport, communication networks, internet connectivity, and utility
services lower transaction costs and expand market reach. In the digital era,
cloud platforms, e-commerce logistics, and smart technology create new
opportunities. Infrastructure directly connects with markets, policies, and
resources, acting as the backbone without which entrepreneurial initiatives
cannot scale effectively.
Culture and society: the invisible hand
Culture shapes the mind set of entrepreneurs. In India, risk aversion and
stigma attached to failure often discourage new ventures (Jha, 2018). This
cultural resistance is particularly problematic in livestock enterprises, where
disease outbreaks and market volatility are common. However, in dairy
entrepreneurship, regions with strong cooperative traditions, such as Gujarat
show how supportive culture enhances entrepreneurship. Internationally, Stam
(2015) mentioned that entrepreneurial culture is central to ecosystem vitality.
Regions like Silicon Valley thrive not only because of finance and universities
but also because of cultural acceptance of experimentation and failure.
Culturing similar tolerance is essential for developing entrepreneurship in
India.
Markets
Markets provide the testing ground where entrepreneurial ideas
transform into products and services that generate value. Domestic and
international markets determine demand, shape competition, and provide
feedback loops. Healthy market systems encourage innovation and attract
capital. Their strength is tied to infrastructure, policies, and human resources,
demonstrating the interdependence between consumer demand and
entrepreneurial supply.
Availability of resources
Enterprises require skilled human capital as well as access to land, raw
materials, and technology. The quality of human resources like engineers,
managers, and workers, determines productivity. Non-human resources, like
energy and digital tools, provide scalability. Their availability is shaped by
policies, infrastructure, and education, illustrating how resources sustain and
expand entrepreneurial capacity.
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6. Interrelationship Image Concept
The ecosystem can be
visualised as a web with
Entrepreneurs at the core,
connected to surrounding
nodes:
 Social Culture,
Educational institutions,
and Infrastructure
provide the foundation.
 Markets and government
Policies act as guiding
forces.
 Institutional Support-
accelarators, incubators,
and financial
institutuions, Co-working
spaces foster
collaboration, while
mentors, co-founders, and
consultants offer practical
expertise. Industry
associations and
chambers of commerce
create networking and
policy advocacy platforms.
Together, these support
structures bridge entrepreneurs with markets, capital, and culture, making
institutional backing a critical connective tissue in the ecosystem. bridges
entrepreneurs with opportunities.
 Resources and financial institutions form the sustenance layer.
Each element interlinks, creating a dynamic cycle of support, feedback, and
growth.
Case study: AMUL as an ecosystem in action
The AMUL cooperative’s success resulted from coordinated action: government
supported cooperative policies, financial institutions extended credit,
universities provided scientific innovations, and farmers supplied
entrepreneurial energy. The ecosystem transformed India from a milk-deficient
country into the world’s largest milk producer (Kurien, 2007). This
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7. demonstrates that entrepreneurship can succeed when the ecosystem is
strong, integrated, and inclusive.
Toward a self-sustaining livestock ecosystem
Entrepreneurial ecosystems mature through feedback loops where
successful entrepreneurs reinvest capital, mentor others, and create new
opportunities which was described as “entrepreneurial recycling” by Jha, 2018.
In livestock entrepreneurship, this might involve successful dairy farmers
mentoring others, creating cooperatives, or investing in related ventures such
as feed or veterinary services. Globally, reports emphasize that agriculture-
related ecosystems are critical for achieving Sustainable Development Goals
(SDGs), particularly in food security and rural employment (Lemelson
Foundation, 2021). In India’s building such ecosystems in livestock sector can
yield economic growth, nutritional security, and rural empowerment.
References
Ayala-Gaytan, E., Villasana, M., & Naranjo-Priego, E. (2024). University
entrepreneurial ecosystems and graduate entrepreneurship. The Journal of
Entrepreneurship. https://www.researchgate.net/publication/379406171
IGNOU (2020). Entrepreneurial ecosystem. Indira Gandhi National Open
University.
Cohen, S., & Hochberg, Y. V. (2014). Accelerating startups: The seed
accelerator phenomenon. SSRN Electronic Journal.
https://doi.org/10.2139/ssrn.2418000
Feld, B. (2012). Start-up communities: Building an entrepreneurial ecosystem in
your city. John Wiley & Sons.
Jha, S. K. (2018). Entrepreneurial ecosystem in India: Taking stock and
looking ahead. IIMB Management Review, 30(2), 179–188.
https://doi.org/10.1016/j.iimb.2018.04.002
Kurien, V. (2007). I too had a dream. Roli Books.
Lemelson Foundation (2021). Entrepreneurial ecosystems in agriculture.
Retrieved from
https://www.lemelson.org/wp-content/uploads/Entrepreneurial-Ecosystems-
in-Agriculture.pdf
Stam, E. (2015). Entrepreneurial ecosystems and regional policy: A
sympathetic critique. European Planning Studies, 23(9), 1759–1769.
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8. Stam, K., Singh, A., & Sagar, A. D. (2020). Strengthening the entrepreneurial
ecosystem: A sustainability perspective. arXiv preprint.
https://arxiv.org/abs/2005.13138
World Economic Forum. (2013). Entrepreneurial ecosystems around the globe
and company growth dynamics.
https://www3.weforum.org/docs/WEF_EntrepreneurialEcosystems_Report_20
13.pdf
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