A member of our Advisory Board and Minister of State for Industry, Trade and Investment, who is also a leading expert in microcredits and small-scale businesses, Mrs. Aisha Abubakar, answers this week’s question:
New firms emerge and grow not only because heroic, talented and visionary individuals (entrepreneurs) created them and develop them. New ventures emerge also because they are located in an environment or "ecosystem" made of private and public players, which nurture and sustain them, making the action of entrepreneurs easier. For example, the existence of prior ventures, the availability of start-up financing mechanisms, a patent system and a culture tolerating failure all facilitate the creation of new firms.
The best place an entrepreneur can get support is joining the entrepreneur’s ecosystem within the environment he is situated.
Entrepreneurship ecosystem consists of hundreds of specific elements that experts have grouped into six general domains: a conducive culture, enabling policies and leadership, availability of appropriate finance, quality human capital, venture-friendly markets for products, and a range of institutional and infrastructural supports. An ecosystem provides information to startups with regards to portfolio of investments ideal for an early stage company so as to create a privileged relationship with founders, human resource support, access to market etc.
In essence the best avenue that a startup will be handheld to success and prosperity is to identify and join a local entrepreneurs ecosystem close.