Jim Collins (“Built to Last” author) on Entrepreneurship

A “must read” interview by Jim Collins on entrepreneurship.
Very inspiring and distant from the mainstream approach.

http://www.inc.com/magazine/20090401/in-times-like-these-you-get-a-chance.html

The Relevance of Entrepreneurial Ecosystems

According to a recent study (http://www.ieseinsight.com/doc.aspx?id=1045&ar=19), Entrepreneurial Ecosystems are a key factor to generate successful start-ups. This happens because in addition to the “traditional” support entrepreneurs can normally get (access to financial resources, to marketing, technological and management support services, to mentoring schemes, to physical incubation, …), in this kind of context they also benefit from getting in contact with customers, suppliers and other companies since the beginning of their activity.

This  allows entrepreneurs to develop and validate their initial ideas more quickly and more accurately, and once 90 percent of initial business plans are adjusted before becoming successful businesses, fast, critical and expert advice is a crucial advantage in the entrepreneurial process.

So, entrepreneurial ecosystems can be characterised as open networks that  actively promote the exchange of knowledge and experience between start-ups and companies, and where both interact and mutually benefit from each other’s knowledge and connections.

The study also highlights that there are some cautions to have in building these ecosystems, because this can only be done by empowering people, once relationships between entrepreneurs are at the core of the ecosystems.

Finally, two important insights to bear in mind in order to develop these ecosystems:

• Government support of ecosystems should be faster, more targeted and less burocratic;
• Knowledge Centers, Incubators, Business Services and Investors should take the lead in setting up platforms for interaction to facilitate the development of open networks upon which the entrepreneurial ecosystems can be built

Rural Renaissance based on Creativity

According to an article about the Creative Class in Canada’s Countryside (www.ottawacitizen.com/business/Creative+Class+country/2030974/story.html), to capitalize on the opportunities that exist in rural and small town communities, we must recognize that the benefits and importance of creativity extend across the entire economy and are not limited to selected places or chosen industries. That is, creativity is as important for rural areas as it is for urban ones.

Several assets are highlighted as being strategic in contributing to the success of the creative economy in Rural Areas, namely:

• an educated work force;
• a significant base of educational institutions;
• an ethos of innovation (in agriculture, food health care, manufacturing);
• recreational and other amenities that contribute to a high quality of life;
• a culture of environmental sustainability (green agriculture, renewable energy, local food and local busines support);
• a regional focused economic development strategy that includes the creative economy;

Based on this framework, and in the adoption of a  collaborative attitude focused on leveraging the strenghts of this territories,  it’s possible to overcome the “less favoured region” syndrome and build new and sustainable development paths for rural areas.