It is no longer news that there are important links between the high-growth firms and well-developed entrepreneurship ecosystems. Developed entrepreneurship ecosystems are key to sustainable economic growth, and policymakers try to do everything in their power to cultivate them.
A new study from the journal Local Economy emphasizes the importance of place-based models of regional development. Instead of providing a conventional micro-level overview of high growth entrepreneurship, the authors looked at the entire entrepreneurship ecosystem, and identified five actions that seem to impact all entrepreneurship ecosystems in a similarly positive manner.
- Create policies to support underserved populations. In most local areas there are certain social groups that are excluded. Creating or upholding policies that support minority groups can help firms to access underutilized talent and spur growth.
- Identify economic areas that are doing well within the specific community. As past research has shown, regional ecosystems grow up alongside specific sectors. Additional growth can come from supporting specific sectors in a region.
- Support and create institutions that are relevant to the local population. It is important to create institutions that match the needs of the community before investing the time and capital to build and develop them.
- Strengthen the relationship between community, government, and business leaders. A well-developed network between and within different sectors in a community is necessary for all healthy entrepreneurship ecosystems.
- Pool resources between private actors. Within an entrepreneurial ecosystem, growth comes from entrepreneurs investing into up-and-coming entrepreneurs.
The full article is available to Local Economy subscribers, here.
Contributed by Emily Luepker
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