Entrepreneurs are embedded within an entrepreneurial ecosystem that provides them with access to talent, mentorship, skills, finance, and markets that they need to grow their businesses.
Yet moving from needs-based entrepreneurship in the informal economy to opportunity-based firm creation can be tough, especially in emerging market economies. And the environment or ecosystem in which an entrepreneur is operating directly and indirectly affects entrepreneurial success and impact.
What is an entrepreneurial ecosystem?
Approaches to defining and measuring entrepreneurial or entrepreneurship ecosystems vary widely, but a synthesis of existing frameworks shows a set of domains that are key to most of these ecosystems:
- Finance: Includes access to debt; access to venture capital; access to grants; access to angels; banks; microfinance institutions; public capital markets; development finance institutions; government finance
- Business Support: Includes industry networks; incubators/accelerators; legal/accounting services, business mentors and technical advisers; credit rating agencies
- Policy: Includes tax rates; tax incentives; costs to so start a business
- Markets: Includes domestic corporations; international corporations; consumers; distribution networks; retail networks; marketing networks
- Human Capital: Includes high schools; universities; technical training institutes; community colleges
- Infrastructure: Includes electricity providers, transport providers; communications (mobile, internet); other utility providers (gas, water)
- Research and Development: Includes public research centers and laboratories; private research centers and laboratories
- Culture: Includes media, government, schools, professional associations, social organizations that support a culture of entrepreneurship
ANDE’s Ecosystem Snapshots provide data about financial and non-financial support available for small and growing businesses in a specific city, region, or country.