The document discusses measuring the vitality of entrepreneurial ecosystems to support different types of entrepreneurs. It analyzes ecosystems with a mix of urban and rural areas. Small and medium enterprises (SMEs) focus on local markets with linear growth, while innovation-driven enterprises (IDEs) focus on global markets requiring investment. The study examines New River and Roanoke Valley regions, finding strengths in quality of life and resources but challenges in collaboration across regions and supporting IDEs' needs. Metrics are proposed to measure ecosystem density, fluidity, connectivity, and diversity as inputs, outputs, and outcomes for SMEs and IDEs.

1. Same Ecosystem,
Different Entrepreneurs
MEASURING THE VITALITY OF A DIVERSE ENTREPRENEURIAL
ECOSYSTEM

2. Entrepreneurial Ecosystem
[...] a set of interconnected entrepreneurial actors
(both potential and existing), entrepreneurial
organizations, institutions and entrepreneurial
processes which formally and informally coalesce to
connect, mediate and govern the performance within
the local entrepreneurial environment (OECD, 2014)

3. Research Questions
1. What are the requirements of differing types of entrepreneurs within an ecosystem?
2. What are the dynamics of ecosystems with a mix of both urban and rural features?
3. How can we identify useful and practical metrics to assess how well ecosystems function to
support different types of entrepreneurs?

4. Small and Medium Enterprises
(SME)
Innovation Driven Enterprises
(IDE)
Focus on local and regional markets Focus on global markets
Innovation is unnecessary to the business and its
growth
Innovation-driven technology, process or business
model is essential to business
Employees are local or regional Employees can be anywhere
Most often family businesses or businesses with
little external capital
More diverse ownership base
Typically linear growth. Responds quickly to
increased cash flow.
Business initially loses money but then can grow
exponentially if successful. Requires investment.
Slower response to increased cash flow.
Source: Aulet, B. and F. Murray (2013), A Tale of Two Entrepreneurs: Understanding Differences in the Types of Entrepreneurship in the Economy, Ewing
Marion Kauffman Foundation.

5. Study Area: New River and
Roanoke Valley MSAs

6. Methods
Interviews and Focus Groups with Entrepreneurs (17 respondents) and Intermediaries (27
respondents)
Entrepreneur Surveys (146 respondents; 84 complete entrepreneur responses)
Review of Secondary Metrics Data

7. Results
Sole
Proprietor,
33%
1-4
Employees,
32%
5-15
Employees
, 21%
16-100
Employees
, 8%
101+
Employees,
7%
0 10 20 30 40 50 60
Started and own business
Manage a business started by an
entrepreneur in region
Starting a new business not yet
underway
Own a student-launched business
Had a business in the past, but am
now a mentor
Own a franchise
Which of the statements below best
describes your business?

8. Results
10
5
8
12
13
4
2
6
9
14
0 5 10 15 20 25
Other Services
Manufacturing
Real Estate
Biology and Biotech
Outdoors Related
Support Services and Consulting
Retail and Artisan
IT-Related
SME
IDE
(51)
(31)

9. Results
STRENGTHS
“The region is hungry for anything. We’ve gotten a lot of attention and praise.”
Informal Networking
Quality of Life
Growing Entrepreneurial Resources
Skilled Workforce
Higher Education Institutions

10. Results
REGIONAL COLLABORATION
“Why would we go to Blacksburg? (or Roanoke?)”
While “spaces of collision” exist, translating these interactions into coordinated resources for
emerging entrepreneurs, especially in “hard science spinoffs”, was identified as a challenge.

11. Results
SMEs and IDEs
"Quality of life is a plus, but without capital, I can't attract well-qualified, experienced mid-
level and senior executives from other areas.“ (IDEs)
“Entrepreneurs go to the municipal building and are sent around everywhere like yoyos.”
(SMEs)
“There is a love affair with bricks and mortar investments and not enough support for
programming and to support risk-taking.” (both)

12. Results
LEVERAGING SUCCESS
“Much rah-rah, very few successes - i.e. companies created that can supply living wages for
their founders and create and fund new jobs for new employees.”
“Let’s cultivate a community of ‘cashed out’ serial entrepreneurs.”

13. Results
ROLE OF HIGHER EDUCATION
“We shouldn’t try to
be the Stanford of
the East Coast.”

14. Metrics
DENSITY – Relative density of entrepreneurship
FLUIDITY – The accessibility and easy flow of resources in an ecosystem.
CONNECTIVITY – Connections among elements of the ecosystem – its programs, companies and
individuals.
DIVERSITY – An assortment of economic specializations, people and opportunities.

15. Metrics
INNOVATION-DRIVEN
ENTERPRISES (IDE)
SMALL AND MEDIUM
ENTERPRISES (SME)
Density Fluidity Connectivity Diversity
1. Input
2. Direct Outcome
3. Indirect Outcome
1. Input
2. Direct Outcome
3. Indirect Outcome
Density Fluidity Connectivity Diversity

16. Metrics
DENSITY
• Workforce Education Levels
(%)
• Broadband Density (High
Speed Connections per
1,000 households)
• Incubator, Accelerator and
Coworking Spaces per
Capita
• Number of Business Owners
as % of Adult Population
• # New Firms per 1000
people
• Scale-Up Density (# of Scale-
Ups for past 5yrs by total #
of firms)
• Gross Regional Product
• Unemployment Rate
• Per Capita Income Growth
(esp. for low income
households)
• Poverty Rate
• Job Growth to Population
Growth Ratio
INPUTS OUTPUTS OUTCOMES

17. Metrics
FLUIDITY
• STEM Degrees Issued
(Associates and Bachelors)
• University Licensing
• Change in Angel, Venture
Capital and other private
investments
• $ provided in tax incentive
programs
• R&D or High Tech
Employment
• # of University Start-Ups
• Business Churn (births and
deaths)
• # Inc 5000 Companies (High
Growth Firms)
• Gross Regional Product
• Unemployment Rate
• Per Capita Income Growth
(esp. for low income
households)
• Poverty Rate
• Job Growth to Population
Growth Ratio
INPUTS OUTPUTS OUTCOMES

18. Metrics
CONNECTIVITY
• Characterize infrastructure
connecting internal and
external hubs
• Commuting Data
• Program Connectivity
• University Spinouts
• Employment by Start-Ups
• Network Analysis via
business survey
(impressions of connectivity
and collaboration)
• Gross Regional Product
• Unemployment Rate
• Per Capita Income Growth
(esp. for low income
households)
• Poverty Rate
• Job Growth to Population
Growth Ratio
INPUTS OUTPUTS OUTCOMES

19. Metrics
DIVERSITY
• Population Flux or Net
Migration (migrants and
immigrants)
• Inventory of Funding Types
• Economic Diversification by
Industry
• Economic Diversification by
Industry
• Gross Regional Product
• Unemployment Rate
• Per Capita Income Growth
(esp. for low income
households)
• Poverty Rate
• Job Growth to Population
Growth Ratio
INPUTS OUTPUTS OUTCOMES

20. Questions?
Density Fluidity Connectivity Diversity
Input • Education levels
• Broadband
• Entrepreneur
working spaces
per capita
• STEM degrees
issued
• University licensing
• Private investments
• Tax incentives ($)
• Infrastructure
connectivity
• Commuting data
• Program connectivity
• Population flux or net
migration
• Funding inventory
• Economic diversification
by industry
Output • Business owners
as % population
• New firms per
1000 people
• Scale Up Density
• R&D/High Tech
employment
• University startups
• Business churn
• High growth firms
• University spinouts
• Employment by
startups
• Network analysis via
survey
• Economic diversification
by industry
Outcome Gross Regional Product; Unemployment Rate; Per Capita Income Growth (esp. for low income
households); Poverty Rate; Job Growth to Population Growth Ratio