The road to becoming a successful entrepreneur is full of needles on which you have to walk barefoot. There are a lot of factors that affect the rates of startups and scaleups. Whenever someone starts a new business, they eagerly want to evolve into large enterprises. Due to this, many startup end-up failing after running for 5-10 years.
Successful entrepreneurship grows in fertile soil that includes the combination of social and economic environments to facilitate entrepreneurial activity. These factors vary from place to place – in some place they are better, while is other, the story takes a 360-degree turn.
What is an Entrepreneurial Ecosystem?
The individuals, organizations, investors, and bodies that facilitates and supports the activities of a startup or growing enterprise is known as an entrepreneurial ecosystem. This ecosystem is responsible for providing resources such as people, infrastructure, money, and market to startup businesses. The supportive leadership and policies within an open and inclusive culture make it easier for a startup to grow.
Various nations and large enterprises are showing their interest in supporting the development of entrepreneurial ecosystems. According to experts, it will directly impact the economic development policy of a country in the post-COVID-19 era. If we look globally, many regions and cities have Entrepreneurship Support Organizations. These ESOs are funded by non-profit organizations or public bodies whose funding comes from the government. The responsibilities of ESOs is to provide networking, mentoring, financial help, training, and advice related to entrepreneurial activity.
Recently, Flipkart launched its Virtual Accelerator program to identify business-to-business and business-to-consumer startups in the consumer internet space and technology. The company will help them grow, scale, and navigate the challenges that might occur in setting up a business. The selected startups would get qualified to receive an equity-free grant of INR 18.7 lakh (US$ 25,000).
The need for a Healthy Ecosystem
The world is changing as we speak. There are plenty of technologies that will decide the future of humanity. The diversity of ideas that an individual could bring for the welfare of the society would be much appreciated in this era when the whole world is fighting against the pandemic. To support the current or future entrepreneurs and their changing needs, we need a diversity of support to make entrepreneurial ecosystems more effective. To begin with, we need to address the following questions to assess the entrepreneurial ecosystem’s health:
- Do the ESOs services cover all the resources needed to ensure ongoing support for an entrepreneur’s business development?
- Do ESOs have a collective mix of specialist and generic support and resources? Do ESOs and entrepreneurs share the same goals and sense of collective mission?
- Is there any competition between ESOs to claim successful businesses?
- Are ESOs run by people having startup business experience? For example, entrepreneurs for entrepreneurs?
What matters here is the proper connectivity between ESOs and enterprises that want to support future startups. Operating individually will only make things difficult for young entrepreneurs. They want the best environment where their ideas get recognized by ESOs and supportive organizations. You may have heard the saying – “It takes a village to raise a child.” Similarly- “It will take a whole ecosystem to feed, raise, and nurture a successful entrepreneurial venture.”