Five Principles for Harnessing Entrepreneurship Ecosystems for Rapid Regional Growth
Most regional and national leaders – whether they are public officials, corporate executives, foundation directors, heads of chambers of commerce or industry associations – now see fostering entrepreneurship as a strategic or policy priority.
Nevertheless, research from advanced and middle income economies in recent years has shown clearly that most of the social and economic benefits from entrepreneurship – job creation, tax revenues, wealth creation, and innovation – come from a very small percentage of entrepreneurial ventures. In addition, most of these ventures defy stereotypes and conventional wisdom. They are 15-30 years old rather than startups and they are in basic industries rather than “tech” or life sciences.
So public and private sector leaders are now asking themselves, what is the best way to invest to foster entrepreneurship in order to capture those social and economic benefits?
The Babson Entrepreneurship Ecosystem Project
was created in 2010 to answer that question: from projects we are running in Latin America, the USA, Scandinavia and other regions, we have learned that fostering entrepreneurship requires a coordinated, multi-stakeholder strategy to impact many different aspects of the entrepreneurship ecosystem simultaneously. It is possible, when the region of focus is well delineated and the objectives clearly aligned, to see results – companies starting to grow rapidly -- even within 6-12 months.
This recorded presentation covers key principles for how to achieve quick, cost effective results. These include:
- Focusing on specific regions
- Aligning the local leaders around a clear vision and clear objectives
- Achieving tangible results in just a few months
- Work with ventures with existing revenues and organizations, rather than startups
- Don’t preferentially incentivize certain sectors
About the Presenter
Daniel Isenberg is Professor of Entrepreneurship Practice at Babson Executive and Enterprise Education. Since 1981 Daniel has taught at Harvard, Columbia, INSEAD, and the Technion, and has been an entrepreneur and venture capitalist in Israel, and has been an angel investor in over ten countries. Daniel is a frequent participant at Davos and the G20 and blogs for HBR, Huffington Post and others. In 2009 Daniel established the Babson Entrepreneurship Ecosystem Project (BEEP) to help societies around the world create the policies, structures, programs, and climate that foster entrepreneurship. In this capacity, he has conducted projects in numerous countries, including Colombia, Brazil, Denmark, Canada, and the United States. Daniel has published several seminal articles in the Harvard Business Review, including “Entrepreneurs and the Cult of Failure,” “How to Start an Entrepreneurial Revolution,” and “The Global Entrepreneur.” He is also the author of the Harvard Business Review Press book, Worthless, Impossible, and Stupid: How Contrarian Entrepreneurs Create and Capture Extraordinary Value. Daniel holds the Ph.D. in social psychology from Harvard University.