City Hubs for Entrepreneurship Series
A Platform to Accelerate the Development of Local Entrepreneurship Ecosystems | Case: Miami, Florida
8 / City Hubs for Entrepreneurship Series: Miami, Florida FRAMEWORK FOR ACTION Successful Entrepreneurship Ecosystems Follow a Specific Growth Cycle. Successful entrepreneurship ecosystems enable high-potential entrepreneurs to access the resources they need — such as talent, financing, and access to customers — and build companies that create jobs and value for their communities. Entrepreneurship ecosystems are made up of individuals, companies, governments, and other organizations that interact to influence the development of entrepreneurs and their firms in a single metropolitan area or region. Ecosystems can exist within specific local industries or across all industries in an area. Their participants include entrepreneurs, investors, customers, suppliers, employees, policymakers, and many other individuals and institutions. While there are many actors in an ecosystem, successful ecosystems follow a specific cycle of growth that depends on one group in particular — successful local entrepreneurs who build scalable firms and go on to reinvest their financial, intellectual, and social capital into the next generation of local entrepreneurs and companies. In Silicon Valley, for example, hundreds of companies can be traced back to a single firm, Fairchild Semiconductor, a highly successful business founded in 1957. After Fairchild achieved success, its founders and employees invested their funds and experience into launching over 20 new tech companies, including Intel, and co-founding two venture capital firms, Kleiner Perkins Caufield & Byers (KPCB) and Sequoia Capital. Figure 4: Network Map of Relationships in Buenos Aires’ Tech Sector. The Impact of the Top 3 Companies 1 2 3 The entrepreneurs from the three most influential companies are very successful in their own right. 1) Patagon: Sold to Banco Santander for $750M in 2000 2) Digital Ventures: Sold to Fox Entertainment in 2007 for an undisclosed price 3) MercadoLibre: Went public on the NASDAQ in 2007 Legend: Size of circle reflects the influence of the entrepreneurs at each company based on their number of outgoing connections. MENTORSHIP INSPIRATION INVESTMENT FORMER EMPLOYEE FOUNDER Source: Endeavor Insight analysis. These entrepreneurs influenced 80% of the other firms in the network, highlighted here in light orange.