The self-explanatory term entrepreneurship ecosystem indicates an environment with favourable circumstances for your Business to grow. In simple words, if we consider a Business to be Ishaan Awasthi, then the entrepreneurship ecosystem can be called Ram Shankar Nikumbh, who always helps the Business to push its boundaries and grow.
To scratch the surface and reveal the details of what exactly is an entrepreneurship ecosystem, below are a few points:
2. Any entity related to an entrepreneurship ecosystem, which affects the ecosystem or is affected by it, is called a stakeholder. These might include government, universities, investors, banks, entrepreneurs, military, labour representatives, etc.
3. Daniel Isenberg described the environment for the growth of entrepreneurship in Harvard Business Review in 2010. He stated that proper access to human, financial, and professional resources and operating in an environment where entrepreneurs are encouraged by Government policies makes them the most successful entrepreneurs.
4. For creating sustainable businesses, a single factor alone in the ecosystem is often insufficient. Each element of an entrepreneurship is vital to the overall growth of the ecosystem and the businesses.
5. Entrepreneurship is an asset to a nation’s economy since it generates wealth, drives innovation, and creates employment. Hence an entrepreneurship ecosystem holds importance for creating better and more sustainable businesses.
- The Babson College Entrepreneurship Project has stated that an entrepreneurship ecosystem has 6 critical elements, policy, culture, finance, human capital, supports and markets-
- The policy comprises the rules and regulations of the government.
- Culture refers to the norms of the society in which the Business is growing.
- Finance includes all the available financial services.
- Human Capital means the workforce, their abilities, and their skill levels, etc.
- Support covers the non-governmental aid such as investment bankers, advisors, consultants, etc., and the infrastructure.
- Markets include all the entrepreneurial networks and customers.
7. The dominance of one or more of these elements in developing an entrepreneurship ecosystem varies from place to place and makes these systems unique. For example, the entrepreneurship ecosystem of Israel developed without any natural resources and military essentials in the 1970s. In comparison, the ecosystem of China grew more due to their policies and a totalitarian political system.
8. As a matter of fact, an entrepreneurship ecosystem grows, sustains, and operates better if the conditions are favorable. The factors like reduced bureaucratic obstacles, encouraging and inviting financiers to invest in and attract new ventures contributing substantially to the growth of an entrepreneurship ecosystem.
9. India’s entrepreneurship ecosystem is the third largest and one of the fastest-growing ecosystems in the world. The number of new companies formed has been steadily increasing for a decade. In 2015 alone, almost 10000 companies originated in India.
10. Although the Indian entrepreneurship ecosystem has factors like a large market, high-quality talent, and access to financing working in their favor, some problems persist. There is low tolerance for failure in Indian society. A large section of customers is price-sensitive that makes it a bit tricky to create a profitable business.
The origin of some super-successful companies like Apple, Yahoo, Facebook, and Google in Silicon Valley, one of the largest entrepreneurship ecosystems in the USA, vouches for the efficacy of Entrepreneurship ecosystems.
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