Fostering Productive Entrepreneurship Communities

Endeavor Insight has studied entrepreneurial communities in a number of cities around the world, from Cairo to Singapore to San Paolo. Insight’s latest report, titled “Fostering Productive Entrepreneurship Communities: Key Lessons on Generating Jobs, Economic Growth, and Innovation,” is the largest of these studies to date and goes far beyond analyzing individual cities. The study draws on numerous entrepreneurial communities across the world, particularly Bangalore and Nairobi, to develop a new set of findings on how entrepreneurial communities develop, and how decision makers can empower them to become more productive.

This study is also one of the first research projects to use network analyses to assess the collective impact of founders, investors, and other actors in entrepreneurship communities. The findings that were revealed are are likely to surprise many people working in the entrepreneurship field.

  • First, the bad news. A number of popular support initiatives may actually be harming entrepreneurs’ productivity. Data suggests that this is due to predictable mistakes. Many initiatives often elevate unqualified leaders and waste efforts on very low-potential businesses.
  • Decision makers can also play positive roles by empowering leaders with unique entrepreneurship experience to influence local founders in ways that can significantly improve their performance. This strategy, referred to as “Entrepreneur-Led Economic Development,” utilizes existing local strengths to increase the productivity of businesses in the community. A detailed discussion of how this can be implemented is included in the report’s recommendations.

The full report can be accessed here. An addendum to the main report that contains more detailed information about each of the specific cities studied in the project can be found at this link.

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