Entrepreneurial ecosystems refer to the social and economic environment affecting local entrepreneurship.
New companies emerge because visionary entrepreneurs set up start-ups in places which help building up and developing such firms. Some factors which help the entrepreneurs with their start-ups are financing opportunities, existence of older more experienced start-ups which have established themselves already and an environment that is open to the creation of new firms.
Entrepreneurs help each other to explore ideas, to overcome obstacles like finance and fear of failure. With good social skills one can come further faster so it is good to use emotional intelligence. It is to recognise one’s own emotion and others, to guide thinking and behaviour and to adapt. Social skills should not be underestimated. One has to have empathy to connect and foster relationships with people in the industry.
Silicon Valley is probably the most famous start-up ecosystem where numerous high-tech companies emerged and live together. It has become a hub for innovation and development in the technology and science area. It has also a well-developed venture capital base which helped the start-ups to prosper and overcome financial droughts.
In East London there are start-ups arising which form an ecosystem, Tech-City. The article “Start Me Up”(2013) talks about it and how it grows. London is due to its language and modern thinking a magnet for young entrepreneurs striving for success. People come from abroad to try their luck. Although financing and finding people to hire are problems often, the ecosystem helps build businesses. Entrepreneurs invest in other start-ups and offer money and more importantly experience. It has become cheap to create start-ups due to free or inexpensive technologies such as cloud sharing and support by other entrepreneurs.
There is no guarantee that Tech-City becomes a new Silicon Valley but it grows into a self-sufficient ecosystem. Entrepreneurs can only survive with the right mind-set. They have to be prepared for set-backs and cannot simply quit when it gets problematic. Setting up your start-up in an environment where it can flourish is an significant factor to success. Entrepreneurs have to be courageous in order to be successful. They take risks to become their own successful boss. They want to gain independence and have a passion that pushes them forward. If you are surrounded by entrepreneurs like that you have a great motivation and also knowledge which you can access.
Start Me Up (2013) Available at: http://www.economist.com/news/britain/21587268-cluster-start-ups-east-london-thriving-all-they-need-now-big-success-start-me-up (Accessed: 05.11.16).