Communities were made to thrive.
We need ecosystem builders to make that happen. We need ecosystem builders. Why the emphasis? Because the more things change, the more they remain constant. Our work is urgent and the appetite for meaningful support remains unchanged. Every hour of every day people are inspired with possibility and raw entrepreneurial motive. Ideas are the building blocks of tomorrow. Startups are the engines that facilitate fresh value creation. Communities need people with ideas and the people with ideas need communities to help them along the way.
Entrepreneurship is a team sport. That's the reality.
Why We need Entrepreneurial Ecosystem Builders
Nobody has a monopoly on entrepreneurial ecosystem building. The power of thought is the might of the ages and in the 21st century, entrepreneurship and innovation are force multipliers for what's possible when ideas take flight.
We are all starters. All of us are born with an innate “right to start,” to make an idea into reality. It’s time to unleash that right in all of us. That means breaking down barriers, and giving people resources to adapt, start, and grow. That will help millions of us find alternative incomes, restart closed businesses, and open new businesses to provide needed things. - We Are All Starters: A Manifesto to Renew Ourselves and Our Nation by Victor Hwang
An entrepreneurial ecosystem builder helps to create the right conditions for an entrepreneur to thrive. Their mission is to cultivate a field of opportunity, connection, and engagement where starters can build their skills and unleash their inspiration.
Many communities today are primed with a blank canvas to unlock entrepreneurial impact and drive innovation.
Tell me about your entrepreneurial community. How does it function? Who are the champions and catalysts? What are the success stories and key moments? What's working? What needs to be addressed? No matter your history and experience with supporting entrepreneurs, we can all use a little friendly reminder of the key ingredients for success and critical role of an entrepreneurial ecosystem builder.
Many communities have the elements of an ecosystem, but they remain nascent or disconnected. Their networks may be small, siloed, or fragmented. And their cultures may lack vibrancy, trust, and social cohesion. When such gaps exist, leaders must consider the whole ecosystem and enhance each of its elements. In recent years, these individuals have come to be called “ecosystem builders.” - Kauffman Foundation on Ecosystem Builders
How Does An Entrepreneurial Ecosystem Builder Function?
Ecosystem builders are systems leaders who focus on the core pillars of community, connection, and collaboration. They are the catalysts for lasting entrepreneurial activity, innovation strategy, and driving new business starts moving the needle on tangible economic growth. A startup community thrives when people and the right resources come together in harmony.
Collisions between people, ideas, and resources often allow entrepreneurs to find missing pieces of the puzzles they are trying to solve. - Kauffman Foundation
The people crazy enough to believe in the power of entrepreneurship live in the future and build what's missing. That's the order of the day for an entrepreneur right? Entrepreneurial ecosystem builders are no different. Our mission is to connect, empower, and collaborate with others to build a system that thrives on the whole. We are evangelists and system entrepreneurs, working to lift up the whole community to achieve its full potential.
Entrepreneurial ecosystem builders play multiple roles, including system architect, champion, advocate, convener, cajoler, traffic cop, air traffic controller, and storyteller. - Kauffman Foundation on Ecosystem Building
Entrepreneurial support organizations are a powerful mechanism for impact.
According to SEC.gov, Entrepreneurial support organizations (ESOs) support, mentor, train, and sometimes fund entrepreneurs and early-stage businesses. ESOs and ecosystem builders alike help spur innovation and economic growth by providing business development services and resources to help founders (and the community itself) develop, scale, and sustain viable businesses.
ESOs can also take the form of a venture studio or accelerator with the knowledge of continuous innovation methodologies and proven entrepreneurial frameworks to increase the odds of success. Often, these catalysts have the knowledge and networks to support communities as they navigate through ecosystem building maturity.
Entrepreneurial ecosystem builders have a clear North Star.
We understand why we exist. We bridge the gap between readiness and results.
In communities across the globe, our shared mission is to "activate and empower communities of entrepreneurs to build ventures with a positive economic and societal impact." (The Founder Institute)
The Value of Working with an Entrepreneurial Support Organization (ESO)
ESOs offer a range of support and can differ in a number of ways.
Programming: ESOs structure their support program or services in different ways. For example, program lengths, scope, and intensity vary widely, as do the kind and level of business coaching, mentorship, and resources an ESO offers. Program goals may also differ, as some ESOs focus on helping entrepreneurs find funding sources or investors, while others may focus on helping companies scale or grow their customer base.
Resources: ESOs may offer a range of resources, including training, business and advisory support (such as attorneys and accountants), administrative support, mentorship, coworking space, and educational and networking opportunities.
Company Stage and Industry: ESOs focus on companies at different lifecycle stages. Some ESOs target founders who are still developing their business model, product or idea, while others help scale an existing viable business. ESOs may focus on particular industries or affinity groups (e.g., based on race, gender, veteran-status, or geography).
Funding: Some ESOs provide funding (e.g., grants or investments), while others may provide opportunities to meet and connect with potential investors (e.g., demo days and pitch competitions).
Community: No matter the structure, ESOs seek to provide a network of entrepreneurs and advisors, although the breadth and experience of the advisors, mentors, coaches, investors, and founders within these communities vary greatly. (SEC.gov on Entrepreneurial Support Organizations)
Entrepreneur support organizations (ESOs) include groups that lead accelerator programs, coworking spaces, competitions, technical assistance programs aimed at entrepreneurs in a given region working in partnership with economic development groups, chambers of commerce, regional innovation strategy stakeholders to accelerate impact.
ESOs are built to curate access to capital networks and help communities create a thriving playing field built around the entrepreneurs eager to build.
Often, entrepreneurial ecosystem builders are a catalyst for culture change.
Culture makes the ecosystem come alive. We find culture in a community’s energy, its attitude toward collaboration and competition, and its enthusiasm for entrepreneurship.
The essence of an entrepreneurial ecosystem is its people and the culture of trust and collaboration that allows them to interact successfully. An ecosystem that allows for the fast flow of talent, information, and resources helps entrepreneurs quickly find what they need at each stage of growth.
An ecosystem culture that is rich in social capital – the networks, norms, and social trust that facilitate coordination and cooperation for mutual benefit is like rocket fuel for entrepreneurial growth. An ecosystem will struggle without a culture of collaboration, cooperation, and trust that inspires people to move quickly, help each other, and be open to novel ideas. - Kauffman Foundation on Ecosystem Building
Keys to a Vibrant Entrepreneurial Ecosystem
One of the most important characteristics of an effective entrepreneurial ecosystem is density. Nobody has a monopoly on ecosystem building. It takes a village of stakeholders to awaken the DNA of entrepreneurship and innovation within a new or existing community.
Access to connections, events, experiences, and options provide the founder with a playground of opportunity.
Let's take Sacramento's Startup and Innovation Ecosystem for example comprised of a rich network of events and activities, coworking spaces, maker spaces, co-labs, accelerators, incubators, training options, colleges and universities, funding, and civic programs. In other words, the founders who find themselves in a rich ecosystem like Sacramento have options to bring their ideas to life.
Another key ingredient of a building an entrepreneurial ecosystem is programming providing entrepreneurs access to curriculum and know-how like proven innovation strategies, startup methodologies, and coaching. Programs and resources built to educate and empower the founder(s) increasing the possibility of achieving momentum and traction.
The essence of leadership is the capacity of the system, in which everyone is participating, to sense and shape the future, and to be in touch with what is wanting to emerge, and then stepping into that. - Theory U: Emerging Leadership
We can step into a world of possibility for growth and impact by working together to unlock the door for entrepreneurs eager to emerge and build the future. These are just a few thoughts on the role and impact of an entrepreneurial ecosystem builder.
The goal here is to shed some light on the role of an ecosystem builder as an important component to achieving local and regional momentum in entrepreneurial capacity building.
Ready to connect and collaborate? Let's get started. There's even a Startup Ecosystem Canvas courtesy of the Founder Institute we can utilize to map our next move.
Jose Huitron, Founder/CEO at Edify Ventures.
Founder & Chief Community Builder at Santa Maria Valley Tech built to inspire a thriving entrepreneurial ecosystem and innovation economy in the Santa Maria Valley.