1st Bac - The Entrepreneurship Ecosystem

  https://youtu.be/mW6dGqp4YYQ

The entrepreneurship ecosystem

1. What is an entrepreneurship ecosystem?
2. Stability
3. Activity 
4. Entrepreneurs




1. What is an entrepreneurship ecosystem?
An entrepreneurship ecosystem is an economic, social, and cultural environment comprising multiple stakeholders involved in or benefitting from concentrated activities related to entrepreneurship. These stakeholders are individuals, organizations and institutions across the private and the public sector such as entrepreneurs, investors, government, military, aid agencies, universities, research centres, professional services firms, local communities, and many more. The activities carried out by the stakeholders are largely geared towards facilitating entrepreneurship in a wider sense. Although these activities are not following a concerted approach they are interrelated. Entrepreneurs and investors represent the nucleus of an entrepreneurship ecosystem around which everything revolves.

2. Stability
Although this is the most obvious one, many people overlook stability as an important factor for entrepreneurship. A country or a region needs to provide a certain level of political and economic stability in order for businesses to grow. For a company the most common method to evaluate, organize, and track macro-economic factors of an ecosystem that may impact the business is conducting a PEST analysis developed by GroupMap Technology Pty (2019). https://www.groupmap.com/map-templates/pest-analysis


The outcome of the analysis provides more factual data on which basis strategic planning processes can be designed and informed decisions can be taken. In short, this tool allows for assessing the potential risk associated with launching a new venture or a new branch of an existing business in a new location.

As an example, the referendum in the United Kingdom held on 23 June 2016 where 51.6% of the British voters voted in favour for the UK to withdraw its membership from the European Union caused a higher level of uncertainty amongst UK business executives. A Harvard Business Review article by Nicholas Bloom et al (2019) titled Brexit Is Already Affecting UK Businesses — Here’s How the authors present the results of around 7,500 surveyed business executives across the UK . The executives were surveyed on the question how they think Brexit would impact their business. The survey found that Brexit is thought to have a negative impact on sales, exports, and costs. The study further reveals that businesses expected Brexit to reduce their sales by around 3% on average. In line with that the effects on exports were expected to be negative as well, whilst labour costs, unit costs, and financing costs were expected to rise. The study confirms that political and economic stability is a major concern for businesses. The study represents the general sentiment of business executives across the United Kingdom towards the levels of political and economic stability in the UK as a result of the referendum.

Activity 1
Read the article Bloom, N. et al. Brexit Is Already Affecting UK Businesses — Here’s How. (Harvard: Harvard Business Review, 2019 https://hbr.org/2019/03/brexit-is-already-affecting-uk-businesses-heres-how
 and:

Homework

1. Search for local venture capital firms in your home area and list the top 5
2. What public grants and funds are available for entrepreneurship on national level and on municipality level in your country?

Sol.

1.Students are asked to listed the top 5 venture capital firms in their area/city. For example: “Nigeria: Ventures platforms, EchoVC, Spark, Microtraction, IFC Capital”.

2. Students are asked to provide an overview about public funds available in their location on municipality level and municipality level. Example: “Malaysia: Temanita Financing Scheme, Tekun Nasional, National Entrepreneurship Institute (INSKEN), Global Accelerator Programme, MAGIC, Cradle Investment Programme, Cradle Fund Sdn Bhd”

4. Entrepreneurs
Entrepreneurs are at the very core of any entrepreneurship ecosystem. They create value, provide jobs, pay taxes, and take risks. Entrepreneurs innovate and disrupt. They are the reason why entrepreneurship ecosystems exist.

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