A startup ecosystem is formed by people, startups in their various stages and various types of organizations in a location (physical or virtual), interacting as a system to create and scale new startup companies. These organizations can be further divided into categories such as universities, funding organizations, support organizations (like incubators, accelerators, co-working spaces etc.), research organizations, service provider organizations (like legal, financial services etc.) and large corporations.
Building a stronger eco-system can help forge stronger business connections and inevitably deal with certain economic ills that are so prominent in a number of countries These ills include youth unemployment, and slow economic growth through innovation. Hence an understanding needs to be built upon how such an ecosystem can prevail at a local and global level.
The insights provided by Michael Luni, an entrepreneur pioneer can serve an important starting point. He establishes that to create such an ecosystem, at the least following components can build a solid base:
-Talent: A talented pool of individuals offering variety of skills, and experience in areas of designing, product management. Their willingness and commitment to join the organization serves an important component.
-Education: A solid education system can enhance the skills and prepare the individuals for the responsibilities of delivering for the start-up. However, fruits can be realized if these start-ups can in turn act as a source for educating employees.
-Events and location: It is important that spread of ideas is facilitated smoothly. Hence start-ups need to find mechanisms for gathering ideas by collocating staff at one place. Also, start-up employees needs to gather ideas by meeting each other at events offering valuable networking opportunities.
-Mentorship: Mentors can leverage their past experiences to ensure that their vast knowledge can prevent start-ups from committing the mistakes and tread on the path of success. This dissemination of knowledge from one generation to the next can create a ‘virtuous learning cycle’.
-Incubators and accelerators: These provide the breeding grounds for start-up growth offering a combination of facilities under one place including mentorship, space to create first prototype, and knowledge sharing for the available talent. Hence, this facility can speed up the process of launching new businesses into the market.
-Funding: While sources of funding can become readily available from local and international sources, it is necessary to ensure that previous generation of entrepreneurs can serve as funding who can in turn leverage their knowledge to create successful businesses.
With these six components combined a sustainable eco-systems can hence be generated. Hence these insights can be built upon to understand the creation of global sustainable start-up ecosystems. The necessary components of a global start-up ecosystem remain the same. It will have to leverage the collaboration of talent, education, events and location, mentorship, incubators and accelerators, and funding. Hence what can be highly valuable in this regards for start-up growth would be the opportunity to leverage knowledge on a global scale by gathering in internationally oriented conferences. Example of such a conference is provided in the upcoming Global Business Innovation and Entrepreneurship Conference to be held in London, UK in 2017. Companies can benefit manifold from attending such conferences, and further enhance global start-up ecosystem.
Source: Luni, Michael, “ 6 components of a thriving ecosystem”