1. The Entrepreneurial
Ecosystem
Part 2:
Dr. Michael R. Burcham
6 Forces that
Accelerate or Destroy e. michael@michaelburcham.com
the Entrepreneurial w.
t.
www.michaelburcham.com
www.twitter.com/michaelrburcham
Spirit of a Community f. www.facebook.com/michael.r.burcham
l. www.linkedin/in/michaelburcham

2. 1 The Talent
Index
Regulatory
Index
Talent
Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

3. 1 The Talent Index
A knowledge economy is driven by educated people. Additionally, high
growth entrepreneurship is magnified with the engagement of great
mentors and advisors.
In evaluating your community’s Talent Index, key elements include:
• Educational institutions (colleges, universities, trade schools)
• Growing pool of high school graduates, bachelor degree graduates
and advanced degree graduates that are interested in staying within
the community and contributing to the overall entrepreneurial
ecosystem
• Research institutions
• Growing pool of technology talent
• Access to experienced, successful entrepreneurs who will serve as
Mentors and Advisors to early stage companies

4. 2 The Cultural
Index
Regulatory
Index
Talent
Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

5. 2 The Cultural Index
One size does not fit all. Your community will need to build your
Entrepreneurial Ecosystem around you own strengths.
In evaluating your community’s Cultural Index, key elements include:
• The degree to which your community encourages risk taking
• How does the community value of launching of a business – even if it
fails
• How often do community leaders celebrate the startup process
• Does your community encourage diversity and differing views –
entrepreneurship is inherently a contrarian activity!
• Number and types of meet-ups and events for the entrepreneurial and
startup community

6. 3 The Capital
Index
Regulatory Talent
Index Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

7. 3 The Capital Index
Early stage capital is ALWAYS scarce – so get used to it! Building access
pathways to capital for the most compelling “investable stories” will take
time, but is an essential part of any entrepreneurial community.
In evaluating your community’s Capital Index, key elements include:
• Presence of seed capital and angel financing - and a growing angel
community
• Lending and banking organizations focused on entrepreneurial ventures
• An active SBA that is connected with the community
• Access to venture capital
• Active and engaged private foundations

8. Attracting Investors
The ability of a community to attract capital becomes a critical piece of
growing the Entrepreneur Ecosystem. If local capital is not
available, startup companies will often “follow the money” and move
their operations to the locations where financing is available.
Factors That Tend to Drive Investor Interest in a Community:
• An improving entrepreneurial environment
• A strong R&D climate supported by the government
• Growing market
• Effective tax policies that encourage risk taking and investment
• Lower cost environment for operations

9. 4 The Infrastructure
Index
Regulatory
Index
Talent
Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

10. 4 The Infrastructure Index
Few startups can succeed without great support and reasonable
infrastructure. This is a wide area for discussion and should be as inclusive
as possible.
In evaluating your community’s Infrastructure Index, key elements include:
• The engagement in the process by local universities and trade schools.
• The degree of support and engagement of
attorneys, accountants, advisors, bankers, outsourcing firms
(HR, Payroll), Chambers, local industry trade groups.
• The visible support of serial entrepreneurs, and experts on topics such as
operations, marketing, sales, and financial modeling.
• Basic infrastructure access such as broadband
networks, logistics, transportation and reasonably priced work space.

11. 5 The Community
Index
Regulatory
Index
Talent
Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

12. 5 The Community Index
Unlike other countries, where business policy is centrally planned, in the
US, many policies and decisions are shaped & implemented at the local
level. There are 74,000 local governments. Local leaders must
deliberately choose to invest in the future, be entrepreneurial and build the
partnerships necessary to harness the strengths of the community.
In evaluating your Community Index, key elements include:
• The single most important factor to get “right” is education
• Access to affordable housing
• Quality of Life – Arts, Diversity, Parks, Sense of Community
• Tolerance for Risk Taking
• A progressive, entrepreneurial mindset of leaders

13. 6 The Regulatory
Index
Regulatory
Index
Talent
Index
Community Cultural
Index Index
Infrastructure Capital
Index Index

14. 6 The Regulatory Index
Government can serve a significant role in removing barriers to
entrepreneurship and being a collaborator with the various organizations
and individuals who will invest their time, expertise and capital to create the
local Entrepreneurial Ecosystem.
In evaluating your community’s Regulatory Index, key elements include:
• Focus on economic development
• Public infrastructure – logistics, transportation, housing
• Tax policy that encourages entrepreneurship and early-stages investment
• Community and government leadership that is supportive of innovation
and entrepreneurship
• Government support of an R&D climate
• Cost of living

15. A Community must
evaluate and
understand these
forces and determine Regulatory Talent
Index Index
if they currently
encourage or
discourage
entrepreneurship
within the community. Community Cultural
Index Index
If you want total
clarity – simply
Ask the Infrastructure
Index
Capital
Index
Entrepreneur
s