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How to measure an entrepreneurial ecosystem ?

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Par   •  2 Avril 2018  •  Dissertation  •  1 426 Mots (6 Pages)  •  556 Vues

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Directed by :                                                                     

Mustapha BEN MAGHA                                                                                            

Master EMPME

Academic Year 2017/2018

Introduction :

Entrepreneurs are the main drivers of economic and social progress. High growth firms are often seen as important sources of innovation, productivity growth and employment. Many governments are therefore trying to actively promote entrepreneurship through various forms of support.

What is an entrepreneurial ecosystem? How do you measure your entrepreneurial ecosystem? Which economic indicators should influence the entrepreneurial dynamism?

Development :

  1. Definition of entrepreneurial ecosystem :

According to Moore (1996):“a business ecosystem is made up of customers, market intermediaries (…), suppliers, and, of course, oneself. These might be thought of as the primary species of the ecosystem. But a business ecosystem also includes the owners and other stakeholders of these primary species, as well as powerful species who may be relevant in a given situation, including government agencies and regulators, and associations and standards bodies representing customers or suppliers”[1]

  1. Indicators of entrepreneurial ecosystem vibrancy and also the measures:

Stangler & Bell-Masterson propose four indicators of entrepreneurial ecosystem vibrancy and also the measures for each of them. These indicators are: Density, Fluidity, Connectivity and Diversity.

  1. Density : entrepreneurial density is “the statistical corollary of the number of entrepreneurs you’ll run into walking across the street”[2]. We can use this indicator by measuring the number of new firms in a given area. It can also be addressed by examining the employment impact of new and young firms. Finally, we want to get some idea of density in terms of specific sectors, specially on high-tech sectors.
  2. Fluidity : for this second, we can measure it in three ways: population flux, labor market reallocation, and number of high-growth firms.

For the “population flux”, “Entrepreneurial vibrancy means people both coming and going”[3].

 Concerning the “labor market reallocation”, it’s “The pace at which population are able to move from job to job and between organizations (what economists call “reallocation”) also should be an important indicator of vibrancy”[4] , “this reallocation, or churn, also has been found to be an important element in regional growth, and barriers to such fluidity will act as an anchor, dragging down entrepreneurial vibrancy”[5].

 For the third measure, “the number of high-growth firms” which allows locating the places of concentration of companies in strong growth, and this will allow the company to come into direct contact with those companies.

  1. Connectivity : we can three measures for it : “program connectivity”, “spinoff rates”, and “dealmaker networks”.

For the first measure, “Connections matter, and a dense network of connections, among a small number of programs, is arguably more important than a sparse network among a larger number”[6]. “The diversity of your entrepreneurial population is likely to be high, and a one-stop shop for serving entrepreneurs is unlikely to do much good in serving all of them.”[7]

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