20140714 stam_dutch_entrepreneurial_ecosystems
DESCRIPTION
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.TRANSCRIPT
A Healthy Entrepreneurial Ecosystem
Workshop Entrepreneurial Ecosystems, Utrecht, 14 July 2014
Prof Dr Erik Stam
Outline
I. Entrepreneurial Ecosystem concept II. NL situa6on: Entrepreneurship Paradox III. NL policy
I. Entrepreneurial Ecosystem Concept
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
Entrepreneurial ac6vity
Entrepreneurial Ecosystem Elements
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
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
Formal ins6tu6ons
Framework condi6ons
Systemic condi6ons
Culture
Networks Leadership Finance Talent
Physical infrastructure
Demand
New knowledge
Support services /
intermediaries
Entrepreneurial Ecosystem Elements
Formal ins6tu6ons
Framework condi6ons
Systemic condi6ons
Culture
Networks Leadership Finance Talent
Physical infrastructure
Demand
New knowledge
Support services /
intermediaries
Entrepreneurial Ecosystem Elements
II. NL situa6on: Entrepreneurship Paradox
A Healthy NL Entrepreneurial Ecosystem?
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
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
Self-‐Employment & New Firms, NL
Solo Self-‐Employed & Employers, NL
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
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
Entrepreneurial Employees
(Eco)systemic Causes & Consequences
• Posi6ve feedback: virtuous circle (for self-‐employment!)
Changing preferences
Changing formal
ins6tu6ons
Lower entry barriers
Higher entry rates
+ Context: high labour protec6on, concentrated financial sector, + Shocks: 1997-‐2001 dot.com boom&bust 2008+ financial crisis
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
(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)
III. NL Policy
Towards a Healthy NL Entrepreneurial Ecosystem
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
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.
Improved Monitoring of Entrepreneurial Ecosystem(s)
• Na6onal • Regional • Corporate • …
Entrepreneurial Ecosystem Index NL
?
Entrepreneurial Ecosystem Index NL
0
2
4
6
8
10
12
14
Regelgeving Cultuur
Netwerken Leider-‐schap Finan-‐ciering
Talent
Fysieke infrastructuur
Vraag
Nieuwe kennis
DV Bedrijven
Noord-‐Brabant
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 • …
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
A Healthy Entrepreneurial Ecosystem
Workshop Entrepreneurial Ecosystems, Utrecht, 14 July 2014
Prof Dr Erik Stam