The Five Essential Things You Need to Create an Entrepreneurial Environment in Your Community.

My recently published guidebook was a step-by-step roadmap for creating the perfect environment for a business formation-centric community. In other words, the type of community that comprehensively provides a system for multiple business formations.?

The idea is that the more businesses that are started in your community, the more opportunities you will have to create jobs, increase capital investment and create prosperity for all. Recently, Victor Hwaung, a long-time promoter of entrepreneurship, created the “Right-to-Start” campaign and wrote a manifesto regarding the need to improve the opportunities for people to start a business. I subscribe to his ideas, and you can find more about his initiative by going to his website here.??

Brad Feld's book, Start-up Communities -- Building an Entrepreneurial Ecosystem in Your City, first published in 2012,? provides a lot of my inspiration and informs my thinking on how communities can best position themselves as startup communities.?

Feld’s book is a practical guide that offers a different perspective on building thriving entrepreneurial ecosystems. He has the “chops,” too. His experience as an entrepreneur, investor, and mentor gives him invaluable insights into what it takes to create and sustain a thriving startup community. He is a partner in the Foundry Group? a venture capital firm in Boulder, Colorado

The book begins by dispelling the notion that Silicon Valley is the only place where successful startups can emerge. Feld argues that any city or region has the potential to foster a vibrant entrepreneurial culture. He emphasizes the importance of collaboration, trust, and a long-term commitment from all stakeholders involved, including entrepreneurs, investors, government officials, and educational institutions.

One of the key takeaways from Startup Communities is the concept of the "Boulder Thesis." Feld introduces this framework, highlighting four crucial principles for building a thriving startup community. His concept says foremost that Entrepreneurs must lead. He also says that the community (of business and entrepreneurs) must be inclusive, engage all stakeholders (or as many as possible), and have a long-term perspective.?

Another noteworthy aspect of the book is Feld's emphasis on the importance of giving before you get. He stresses the need for individuals to contribute to the community selflessly and offer their support and expertise without expecting immediate returns. By cultivating a culture of generosity and collaboration, a startup community can thrive and attract more talent and resources.

Keeping in mind the emphasis on creating the right environment for business formation (download the guide here), and Hwangs’s focus on the “right to start,” let’s take a look at the four fundamental essentials to create a startup community as defined by Feld:

1. Entrepreneurs must lead the process and be “there” for each other -- According to Feld, entrepreneurs are the driving force behind a thriving startup community. They need to take the initiative, connect with one another, and actively contribute to the ecosystem's growth. This is one of the key inspirations I used to create the Circles of Seven mentoring program: Businesses helping businesses…each other.?

1. The community must be inclusive -- There must be inclusivity and diversity within a startup community. It is essential to create an environment where individuals from different backgrounds and industries can come together, share knowledge, and collaborate. Innovation and creativity come from the “cocktail of different ideas.” mixing and matching the thoughts and ideas from various sources.

1. Engage all stakeholders -- ?Building a solid startup community requires active involvement from various stakeholders. This includes government officials, local businesses, universities, investors, mentors, and of course, economic developers and the organizations they operate. Feld emphasizes the need for these groups to work together, align their goals, and support the ecosystem's growth. However once up and running, he suggests to get out of the way and let the tribe lead (see #1 above).

1. Have a long-term perspective -- The most challenging thing is to incorporate and instill a long-term outlook on results. A thriving startup community does not emerge overnight. Elected Officials, board members, and other stakeholders must be patient and committed to long-term results. Building a flourishing ecosystem takes time, and it requires consistent effort, support, and perseverance.

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1. Communication of Expectations --- With #4 above, the long-term nature of the expectations must be communicated consistently and creatively to all engaged stakeholders and the community at large. The communication should be creative and always point to original goals and objectives and potential key performance indicators.??

The role of economic development professional, elected official, or any designated advocate for business start-ups in the community must be aware of the need to plant the seeds, nurture the growth and step back when the fruit is ripe. Nurture, promote, fertilize, and then back off.

What Feld says points to the next post in this series which will talk about how mentoring can be the structure for business-to-business assistance.?

There is a? role for coworking spaces, startup accelerators, angel investors, and venture capital in supporting entrepreneurial growth as well; however, the basics must be mastered first.?

Are you interested in how creating a local small business program can create economic development success in your community? Let’s talk about it. You can schedule a call here, or you can email me at [email protected]