How to Start an Entrepreneurial Revolution

Cape Town needs 30 new high growth entrepreneurs each year to reach the tipping point towards an entrepreneurial revolution, says Daniel Isenberg, Professor of Management Practice at Babson College where he has established the Babson Entrepreneurship Ecosystem Project. He spoke at the Cape Town Entrepreneurship Week last week about his findings, as described in his recent Harvard Business Review article.

He says there is no exact formula for creating and entrepreneurial economy – it is more an art than a science — however there are pointers to help with creating an entrepreneurial ecosystem, conducive to the growth of entrepreneurial businesses. He identifies 9 key principles:

1. Stop emulating other success
2. Shape the entrepreneurial ecosystem around local conditions
3. Government must engage the private sector from the start
4. Give preference to the high potential entrepreneurs
5. Make sure to get at least one big success soon
6. Take on cultural issues head-on
7. Do not “water” the ecosystem too much (“stress the roots”)
8. Clusters must not be designed – they will be the result of growth
9. Remove regulatory hurdles

Thanks to Brent Williams for making this video clip after his talk in Cape Town…