In an era marked by digital transformation , many entrepreneurs have found opportunities to create their own company using technology. Unfortunately, this is not enough to achieve success.
The reality is that the environment where the company will carry out its activities has a lot to do with it. This is where the need to learn more about the entrepreneurial ecosystem arises.
Therefore, in this article you will learn what an entrepreneurial ecosystem is, what variables define it and how it is being configured in two countries in the region: Mexico and Colombia.
What is an entrepreneurial ecosystem?
An entrepreneurial ecosystem refers to the south africa telegram data context in which new businesses can create valuable connections with other companies , institutions or investors to develop innovative ideas that can be capitalized on.
An entrepreneurial ecosystem combines social, political, economic and cultural elements to create an environment – physical or digital – in which its different actors interact to strengthen the different types of entrepreneurship.
But who are these actors? In addition to entrepreneurs and new businesses, the entrepreneurial ecosystem brings together the following:
Startup accelerators and incubators
These are organizations that promote paths to prevention and future security high-potential ventures, usually in the early stages, through mentoring.
Its goal is to help entrepreneurs land their ideas or monetize their business plans.
Investors
Private groups, public institutions or established entrepreneurs responsible for identifying innovative, high-impact projects to finance them with the aim of achieving rapid and sustainable growth.
Educational institutions
Universities, business schools and sms to data research centres play a crucial role in promoting training in business management, the use of ICT (Information and Communication Technologies), adaptation to new digital trends and strengthening the entrepreneurial spirit.
Forum and event organizers
Chambers of commerce, coworking spaces or government institutions that create spaces for entrepreneurs to network , showcase their products or do short training sessions on specific topics.
Variables that allow the emergence of an entrepreneurial ecosystem
The entrepreneurial ecosystem is defined by 6 variables that you can see in the following diagram, taken from Leading Innovating . We explain them below!
1. Politics
Government policies can accelerate the growth of the entrepreneurial ecosystem, for example, by facilitating the opening of new businesses, granting tax incentives and providing financial support.
2. Finance
Having financial resources is essential for startups to be able to hire staff, rent work spaces and invest in marketing . Therefore, the existence of angel investors , venture capital funds and banks is vital.
3. Culture
Tolerance for failure, creative thinking and a culture of research create entrepreneurs prepared to face the challenges of creating a company.
4. Support
Both support for entrepreneurs through mentors, accelerators and business networks, as well as operational support such as ICT infrastructure or transport and logistics solutions, are crucial for an entrepreneurial ecosystem.
5. Human capital
The existence of skilled and unskilled labor is essential for entrepreneurial ecosystems.
Through education, entrepreneurs and their collaborators gain the knowledge to identify new opportunities and overcome difficulties.
6. Markets
Interaction with end customers and market trends determine the path that new businesses must follow to achieve success.
In addition to these variables, the entrepreneurial ecosystem is defined by the following characteristics:
- Density : refers to the quality of interactions between ecosystem actors. A dense entrepreneurial ecosystem attracts specialized talents, international investors, academic researchers, etc.
- Availability of investment: An entrepreneurial ecosystem must ensure a constant flow of money with which new businesses can sustain their operations and finance future projects.
- Maturity: refers to the experience that entrepreneurs must have regarding their own businesses and the dynamics generated by digital transformation.
- Education: Entrepreneurship requires well-prepared people, both in specific knowledge and in behaviors and attitudes.
The entrepreneurial ecosystem of Mexico and Colombia
The impact that entrepreneurship has on the economies of countries is undeniable. In addition to generating new jobs, startups attract foreign investment and capitalize on inexhaustible resources such as innovation and technology.
In Latin America there are important business hubs in Brazil, Mexico , Chile and, recently, Colombia .
Below, we will explain some of the reforms that the governments of Mexico and Colombia are implementing to consolidate their entrepreneurial ecosystems.
Entrepreneurial ecosystem in Mexico
Since 2010, the Mexican government has implemented a legislative reform that facilitates the creation of new companies and the attraction of foreign funds.
We have 3 examples of laws that represent that:
- of Commercial Companies, which speeds up the process of formalizing businesses in 6 days, while reducing the costs of the procedure.
- Fintech Law, which establishes a legal framework for companies in the technology and banking sectors .
- Re-entrepreneurship Law, which allows a business to be liquidated quickly in order to found another.
Likewise, numerous acceleration programs have been created, led by the National Institute for Entrepreneurship — INADEM —, the National Entrepreneur Fund — FNE —, the Mexican Private Capital Association — AMEXCAP — and the Mexico Emprende National Network.
Similarly, the existence of venture capital funds combined with the entrepreneurial culture promoted by the academic sphere has made Mexico one of the most important entrepreneurial hubs in Latin America, as shown by the increase in the number of virtual stores .
Entrepreneurial ecosystem in Colombia
In recent years, Colombia has ranked among the top 5 countries in Latin America for doing business according to the Doing Business ranking .
And it is no wonder, since the end of the armed conflict, sustained economic growth, its entry into the OECD and political stability have made Colombia one of the main focuses of foreign investment.
Behind the growth of entrepreneurship in Colombia is the internal coordination between the country’s public and private organizations.
These are led by the Ministry of Commerce, Industry and Tourism, and institutions such as Fondo Emprender, Bancoldex and Colciencias support projects in the early stages to ensure their sustainability.
Equally important has been the role of schools and universities in promoting entrepreneurial thinking , reducing the fear of failure and forming a society adapted to technology and innovation.