Ambitious entrepreneurs need stimulating ecosystems. Dutch partners in regional economics (Ministry of Economic Affairs, Economic Board Utrecht, Utrecht University) now explore the Dutch entrepreneurial ecosystem. Erik Stam (Utrecht University) explains the paradox between the large number of self-employed Dutch start-ups and the lack of growth.
7. A
Healthy
Entrepreneurial
Ecosystem?
An
entrepreneurial
ecosystem
is
an
interdependent
set
of
actors
that
is
governed
in
such
a
way
that
it
enables
entrepreneurial
acDon
9. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Innova6ve
start-‐ups
High-‐growth
start-‐ups
Entrepreneurial
employee
ac6vity
Produc6vity
Income
Employment
Well-‐being
Support
services
/
intermediaries
Value
crea6on
Outcomes
Outputs
Entrepreneurial
ac6vity
Entrepreneurial
Ecosystem
Elements
10. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Support
services
/
intermediaries
Entrepreneurial
Ecosystem
Elements
The
framework
condiDons
that
enable/constrain
the
development
and
interac6on
of
actors
in
the
entrepreneurial
ecosystem
11. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Support
services
/
intermediaries
Entrepreneurial
Ecosystem
Elements
12. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Support
services
/
intermediaries
Entrepreneurial
Ecosystem
Elements
15. NL:
Entrepreneurship
Paradox
• Amazing
growth
of
entrepreneurship
in
the
Netherlands,
1987-‐2012
• Miracle:
no
country
in
which
the
TEA
rate
has
grown
as
much
as
in
the
Netherlands
over
the
period
2003-‐2012
(and
precourse
of
rising
new
firm
forma6on
and
self-‐employment)
• Paradox:
increasingly
a
maZer
of
growing
number
of
solo
self-‐employed,
and
low/mediocre
rates
of
growth-‐oriented
entrepreneurship
16. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Innova6ve
start-‐ups
High-‐growth
start-‐ups
Entrepreneurial
employee
ac6vity
Produc6vity
Income
Employment
Well-‐being
Support
services
/
intermediaries
Value
crea6on
Outcomes
Outputs
Entrepreneurial
ac6vity
Entrepreneurial
Ecosystem
Elements
NOT
SELF-‐EMPLOYMENT
&
NEW
FIRMS
PER
SE
19. Formal
ins6tu6ons
Framework
condi6ons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Innova6ve
start-‐ups
High-‐growth
start-‐ups
Entrepreneurial
employee
ac6vity
Produc6vity
Income
Employment
Well-‐being
Support
services
/
intermediaries
Value
crea6on
Outcomes
Outputs
Entrepreneurial
ac6vity
Entrepreneurial
Ecosystem
Elements
NOT
SELF-‐EMPLOYMENT
&
NEW
FIRMS
PER
SE
20. 0
1
2
3
4
5
6
7
8
9
10
11
12
Belgium
Germany
Netherlands
Sweden
UK
Israel
US
Job
growth
expecta6ons
start-‐ups
(2013)
20
or
more
jobs
5-‐19
0-‐5
23. Rise
of
solo-‐self
employment
• more
relevant
as
condi6on
for
entrepreneurial
ecosystem
(“culture”),
than
as
output
• But…,
might
be
indicator
of
lack
of
ambi6ons,
and
constrained
labor
mobility
as
well
24. (Eco)systemic
Causes
&
Consequences
• Nega6ve/no
feedback
– No
build
up
of
system
for
high-‐growth
start-‐ups
(vicious
circle
high-‐growth
start-‐up
scandals
early
2000s:
Baan,
World
Online)
a) Mobility
of
skilled
labour:
employment
protec6on
legisla6on,
non
compete
clauses
b) Capital
market:
VC,
trade-‐sales,
IPO
c) Lack
of
venturesome
demand:
innova6ve
procurement
d) a)+b):
Lack
of
serial
entrepreneurs/informal
investors
– No
champion
of
intrapreneurship,
like
Nordic
countries
(in
spite
of
high
levels
of
trust,
knowledge
work,
and
decentralized
decision
making)
27. Formal
ins6tu6ons
Framework
condiDons
Systemic
condi6ons
Culture
Networks
Leadership
Finance
Talent
Physical
infrastructure
Demand
New
knowledge
Innova6ve
start-‐ups
High-‐growth
start-‐ups
Entrepreneurial
employee
ac6vity
Produc6vity
Income
Employment
Well-‐being
Support
services
/
intermediaries
Value
crea6on
Outcomes
Outputs
Entrepreneurial
ac6vity
Entrepreneurial
Ecosystem
Elements
28. Framework
condi6ons
• changing
formal
ins6tu6ons
to
enable
labor
mobility
(development
and
circula6on
of
talent);
• opening
up
public
demand
for
entrepreneurs,
to
provide
finance
for
new
knowledge
crea6on
and
applica6on;
• s6mula6ng
a
culture
of
entrepreneurship
and
entrepreneurial
leadership;
• adap6ng
or
crea6ng
physical
infrastructure
to
enhance
knowledge
circula6on
and
networks.
32. Regelgeving
Cultuur
Netwerken
Leider-‐schap
Finan-‐
ciering
Talent
Fysieke
infrastructuur
Vraag
Nieuwe
kennis
DV
Bedrijven
Noord-‐Brabant
33. Research
agenda
• What
is
the
effect
of
leadership,
role
models,
mentoring
on
entrepreneurial
ac6vity?
• Relevant
context(s)?
– Region,
country,
corpora6on,
…
• Rela6ve
weight,
interdependence,
and
evolu6on
of
entrepreneurial
ecosytem
elements?
• BeZer
measures
• …
34. Conclusions
• Entrepreneurial
ecosystem
approach
provides
new
insights
for
public
policy
and
entrepreneurial
leadership
(leaders
&
feeders)
• Entrepreneurial
ecosystem
analysis
as
star6ng
point
for
discussions
about
changing
framework
condi6ons
and
systemic
condi6ons
35. A
Healthy
Entrepreneurial
Ecosystem
Workshop
Entrepreneurial
Ecosystems,
Utrecht,
14
July
2014
Prof
Dr
Erik
Stam