Everywhere is an ecosystem

I hate analogies. To quote Britta Perry, "It's a thought.....with another thought's hat on it." Ot, as Ron Swanson said this week, "That's why my favorite book is Moby Dick: No froo foo symbolism, just a good simple tale about a Man who hates an animal" And yes, to answer your questions, I did not exactly excel in high school English classes. The biggest issue for me is when biological concepts are used as analogies for social or economic processes. When we borrow a basic concept from biology, like evolution, we also mentally import a lot of the scientific perspective on that concept that doesn't really apply to the social world. Evolution only occurs between generations, but evolutionary economics allows for change within firms during their lifetimes (who are the animal in this analogy). Yes we still think of firm evolution in terms of spinoffs and deaths. Should we be talking about Darwinian or Lamarkian evolutionary economics? What about Lysenkoisms?

I've been thinking a lot about the problems of analogies in the context of entrepreneurial ecosystems. The term ecosystem is decidedly biological. To quote the hive mind, an ecosystem is a:

community of living organisms...in conjunction with the non-living components of their environments...interacting as a system.

The entrepreneurial ecosystem is a combination of living (hopefully) actors like entrepreneurs, investors, and workers and non-living institutions like social networks, government polices and universities, that contribute to a vibrant entrepreneurial community. At its base, an ecosystem is a pretty good metaphor for what we're looking for, a biological ecosystem. An entrepreneurial ecosystem should be self-sustaining and depend on complex interactions between the various living and institutional components that reenforce and reproduce their functions.

However, the usefulness of the ecosystem concept starts to break down once we think about it a bit more. Much of the writing on entrepreneurial ecosystems are based on the question of how do we build ecosystems in new areas. How can policy makers and community leaders foster the institutions and people that will help build a strong ecosystem the likes of Silicon Valley, Waterloo, or New York City? This is based on the assumption that only a few communities have ecosystems, but we should all be working towards building them where ever possible.

There is where the analogy starts to fall away for me. In nature, everywhere has an ecosystem. There's not a place on the earth (from the atmosphere to deep sea trenches) which don't have some kind of ecosystem. Sometimes these are rich, vibrant, and sustainable ecosystems with lots of components, like those in a rain forest or savannah. Others are thin, with few components and resources, like a desert or the arctic. Some human-designed ecosystems, like those of a sorghum farm, could not exist without continual human intervention and involve a number of species (including bacteria) that you could count on two hands.

From this perspective, instead of saying we should build entrepreneurial ecosystems, we should instead recognize that all regional communities already have an ecosystem. Some of these ecosystems support the kind of high-growth, innovation-based entrepreneurship that we like to associate with successful regional economies. Others discourage entrepreneurship, either because there is no support infrastructure to help people start new ventures or there is a cultural discomfort towards the risks of entrepreneurship. In most cases I imagine, the ecosystem has no positive or negative influence on entrepreneurship, the ecosystem is simply neutral towards starting new firms.

A successful entrepreneurial ecosystem isn't created out of whole cloth: it requires the transformation of an already existing economic and social ecosystem within a region. While it's fun and interesting to read about success stories like San Francisco, Denver, or New York City, each region is fundamentally unique. You've got to look at what social, economic, and cultural resources already exist and how they contribute to how entrepreneurs are perceived. Only then can you start to build something new.