Defining a New Hollistic Entrepreneurial Ecosystem

Abstract

Entrepreneurship and innovation are highly significant terms and continuously examined from all different kind of angles. In addition, success factors of startups, as a subset of entrepreneurship, have been analyzed in numerous academic papers. Often one can read in this context about a successful entrepreneurial environment and sometimes the term ecosystem is also being used. Yet the term Entrepreneurial Ecosystem has not been defined, analyzed and developed in such depth to understand what it actually stands for. According to Mader “An Ecosystem is a community interacting with the physical environment. An ecosystem possesses both living (biotic) and nonliving (abiotic) components” (Mader, Sylvia 2011, p.770). The term is however relatively new to the venture and entrepreneur community. During the years for this study between 2009 and 2011, there were still no settled definitions for an Entrepreneurial Ecosystem and the usage of the term was vague. It was professor Isenberg (2011) from Babson College in 2011 and The World Economic Forum in 2011 and 2013 that further shaped, defined and virtualized Entrepreneurial Ecosystems (World Economic Forum & Booz & Company 2011; The World Economic Forum 2013). The goal of this thesis has been to develop a holistic concept of an Entrepreneurial Ecosystem – taking economic, social and personal aspects into account – and identify areas, in which Germany, the local point of this study can improve. To start, the areas of innovation and entrepreneurship have been focused upon and analyzed. Innovation can change our lives extensively. Regardless of whether it is the food business, the medical sector, transportation, the energy industry or even information itself. Actual improvements and new introduced products have led to a longer life expectation, higher standard of living and a variety of options already available for many people on our planet. Whereas innovation is all about implementation of new things in a market, entrepreneurship is about people that are part of the innovation process. They are carrying and focusing on business based upon invention or something new that they introduce to the economy according to their own believes and goals. It should be noticed however that not everyone can thereby become a successful entrepreneur, since many of the necessary inherent abilities cannot be learned or trained. However, these qualities alone are not enough to guarantee success.