The Ecosystem Builder's Dilemma

There is a fundamental tension in economic development between the control desired by economic planners who report to funders and unlocking entrepreneurs through the chaos of Schumpeterian creative destruction. 

 A recent LinkedIn conversation about entrepreneurial “Ecosystem Strategies” led me to share the concrete dilemmas around the need of funding to implement a strategy and ecosystem needs to grow through connections.  So I thought I would pause drafting my book https://www.ecosystemmike.com/ and write a blog on this.  

Let me be clear, I have much respect for those who volunteer their time and lead and manage low and no-cost community events like Meet-Ups, Pitch-events, Hackathons, and weekend events. These activities are a great way to bring the community together and to build a pipeline of innovators. Most successful entrepreneur programs I have worked on have needed some funding.  

Much of this funding on building an ecosystem comes from Governments, International Donors, and Private Foundations. The issue is that these organizations are risk-averse by design and thus like clear and concise analysis, strategies, and plans. They want to fund ecosystem builders who will hold themselves accountable to a work plan with clear objectives and have monthly or quarterly reporting updates. I have done strategies and often waste resources in the following ways:   

• Developing a static ecosystem mapping/analysis, which is outdated by the time the final report is approved.

• Developing an entrepreneurial strategy based on “best practices” that actors will change as soon as there is funding to implement activities that entrepreneurs need. 

• Trying to manage and plan everything out with specific KPI’s for a reporting period and then explain all the changes implemented compared to the plan because an entrepreneurial ecosystem changes so quickly. 

The Ecosystem Builder is not a Manager.

An Ecosystem Builder's job is not to be the strategist and tries to control where resources go, this creates no value to the ecosystem. Our critical function is to be the connective tissue that builds a network and finds resources without controlling the ecosystem. A Builder's Job is to:

• Bridge Gaps: Actively seek out and connect people and organizations with the entrepreneurs.

• Hustle for Support: and leverage every resource and network we for the entrepreneurs in our community.

• Be a Hospital Nurse, and get your entrepreneurs healthy: We do what is necessary to keep our entrepreneurs moving. Sometimes we cheer, sometimes we advocate, sometimes we provide a shoulder to lean on, and once in a while, we have to kick them in the bum to keep them accountable.  

• Foster Trust: Cultivate the social capital that allows decentralized cooperation and risk-taking, reducing transaction costs in the ecosystem. 

  
  

So, the Entrepreneur Ecosystem Dilemma is how do you be a connector and problem solver when the ecosystem's funders want you to be a project manager and ecosystem reporter.  Here are some suggestions, so you can fullfill your role while still getting the funding you need:

1. Diversify your source of funding:  The more you can diversify your funding, the more control you have to build the ecosystem entrepreneurs need. 

2. Build trust in your community: An ecosystem builder is only as strong as their community. The strength and thus confidence from funders comes from the unique, trusted community you have built, 

3. Find Common Purpose and Collaborate:  A strong entrepreneurial ecosystem is when organizations with a common purpose leverage their resources to get more done with less. 

4. Hit/Record your numbers and tell your stories:  At the end of the day, funders want to to create impacts and communicate about the entrepreneurs that they are funding, your data and stories are the key to continue funding. 

5. “Do It” and Learn: Ecosystem builders don’t need strategy, ask what your entrepreneurs need, start a pilot, listen, adjust and scale.

   
   

I’ve been known to overthink entrepreneur ecosystem building. Trying to make it a complicated academic subject that could only be taught at the most elite schools. I made a mistake, it’s not that complicated. If you want to support entrepreneurs, you find out what they need and connect them to the resources and connections needed. At the end of the day 

Now manage the ecosystem builder's dilemma and secure funding while hustling to connect entrepreneurs with resources and thus building a dynamic, adaptable ecosystem.