by Julie Fitzpatrick
Back in October 2015, the Kauffman Foundation first coined the term, “entrepreneurial ecosystems”. The Kauffman Foundation used the philosophy as a way to approach entrepreneurialism from a comprehensive, multiple perspective systems approach beyond simply financing and training entrepreneurs.
The Kauffman Foundation has outlined six major objectives a community, particularly a regional community, could follow in developing an entrepreneurial ecosystem:
1. Favor incumbents less – work to lower barriers for new corporations
2. Listen to entrepreneurs – policymakers could engage entrepreneurs to develop more supportive and practical policies
3. Map the ecosystem – inventory the participants and show their roles and how they’re connected
4. Think big, start small, but move fast – with entrepreneurial ventures and in developing progressive & responsive strategies
5. Avoid artificially segmenting your community or your strategies – most entrepreneurs wear many hats, are versatile & are involved/connected in many ways
6. Prepare to capitalize on crises – economic disruption creates entrepreneurial opportunities
From an ecological perspective, an ecosystem is a community of interacting organisms and their physical environment, or a complex network or interconnected system. The two main components of an ecological ecosystem are: non-organic aspects: temperature, humidity and topography (a biotic) and the life forms that inhabit it: producers, consumers, etc. (biotic). If an a biotic component changes, a biotic component has to adapt or it dies. It is a perfect comparison to how interconnected and interdependent an entrepreneurial environment is to its surroundings.
The National Main Street Center (NMSC) has taken the Kauffman Foundation’s basic principles for local government leaders or a regional community and has adapted them to the Main Street Approach in a community. None of us are self-sufficient, nor should any revitalization strategy be self-contained. Too often the two most basic issues of a failed or thwarted revitalization strategy are communication issues (intra-organizational or inter-community) and a non-comprehensive (siloed) strategy or approach; when developing an entrepreneurial ecosystem, these issues are addressed. This can still occur as a bottom-up, grassroots effort in coordination with local government and the powers that be. It goes beyond accessibility to capitol and mentorship, and incorporates leadership development, social networking, and housing opportunities.
NMSC has developed a comprehensive introduction to entrepreneurial ecosystems – I would encourage you to review it and begin to apply its concepts to your community’s own revitalization strategy, whether it’s a Main Street or an Elm Street program. The guide stresses the importance of this interconnected network and the value of ‘place’ that is often undervalued in developing this whole system. Our unique, historic and authentic communities have the qualities that so many entrepreneurs are looking for when determining where they want to live and begin this next chapter of their lives.
Capitalizing on the characteristics that we already have, such as historic business districts, authentic neighborhoods, and walkable communities are vital first steps in developing qualities related to place in an entrepreneurial ecosystem.
Developing an entrepreneurial ecosystem needs to be focused on creating places where people want to be. If people want to be there, their business will too, and then more people and more business. Developing these places takes a deeper understanding of other factors including the kinds of housing options and service businesses that people both want and need, offering high quality educational systems, and creating an environment for social equality and inclusivity. Supporting opportunities so people are able to create a higher quality of life in all areas: family, social, business, and civic, is at the core.
The entrepreneurial communities within the City and County of Erie have tirelessly worked very intentionally to develop this ecosystem. Join PDC in Erie for the 2019 Conference “Innovation, Entrepreneurship & Economic Vitality”, where multiple sessions will share these stories. Beginning on Monday with the general session on “The Innovation Collaborative” and the Idea Lab mobile workshop, and taking you through the conference with a myriad of individual sessions, we are proud to offer stellar examples of how Erie is creating a place where people want to live and thrive.