Innovation is driven by startups, economic growth, and job creation; hence, the startup community is important. A startup ecosystem is in essence a group of entrepreneurs, investors, mentors and support organizations working together to assist a business get onto its feet and hopefully prosper.

For regions that aim at stimulating innovation in their territories and boosting economies, a vibrant local startup scene has become one of the first priorities. The gains from these firms go past the direct jobs and revenues they generate. Not only does the culture of innovation created by startups extend to other sectors besides tech sector only but it also leads to increased investment and talent inflow into such areas.

Funding and capital

The availability of funding and capital is essential for any new venture. startup community usually facilitate this through connecting entrepreneurs with sources of investors who provide them with required funds at early stages. This helps more entrepreneurs realize their dreams with ease especially when there are strong funding resources available.

Mentorship

Startups need guidance as well as financial support. Mentors can be experienced entrepreneurs or veteran businessmen who share their understanding with the founders. They often do this through incubators for startups; accelerators; shared workspace; community events etc., whereby these kinds of mentors offer an invaluable avenue for founders’ development.

Talent pool

The strength of an innovation hinges on having a good talent pool that equips budding businesses with the right skills set and labor force to change ideas into products. Tech hubs and start-up ecosystems attract risk takers ambitious enough to enter upstart companies in their crusade towards being the next big  venture. Universities are also gateways where interface with the environment for start-up is provided through innovations development centers. Such ability mainly in terms of technical talent works wonders especially for startups that look forward to scaling up or establishing themselves critical mass wise.

Infrastructure

Some cities have made investments in infrastructure, resources, and facilities to directly help start-ups. These include shared equipment, incubators, accelerators, prototyping labs, co-working spaces, legal/accounting services among others that give start-ups a foundation for starting out. On the other hand governments have a role in start up grants; special economic startup zones; investment funds among others as incentives to spur formation of new businesses.

Networking and events

Conferences, pitch competitions, incubator demo days, founder mixers and startup crawls provide connection points for different players in the ecosystem. During these occasions entrepreneurs receive feedback from other entrepreneurs on their ideas; meet potential partners or investors; recruit team members or talk with founders of other startups who are experiencing similar difficulties. In particular for first time entrepreneurs it cannot be underestimated how invaluable this knowledge sharing can be facilitated by these events.

Culture of innovation

Strong entrepreneurial cultures support innovation and make starting one’s own business an attractive option. At the same time success stories about local start-up scenes inspire prospective entrepreneurs thereby telling them what is possible.

Closing

However, the effects of new business ventures go beyond just the immediate economic effects; they have the ability to restore life within neighborhoods and bring in fresh energy. For instance, former manufacturing hubs have led the way in this regard with respect to start-up activity igniting urban renewal efforts. The entrepreneurial landscape then feeds on itself to continually progress the ecosystem.

Paul watson