labex entreprendre publications
TRANSCRIPT
n°14 - APRIL 2016
LABEX ENTREPRENDREpublications
The entrepreneurial support ecosystem is composed of a wide range of actors, all with the same objective: to create value within a geographical area. This ecosystem is complex because of the many actors and the broad diversity of support services on offer (e.g., incubators, chambers of commerce, consultants, accountants, lawyers, banks, research organizations, funding agencies, entrepreneurship clubs, etc.). It is dynamic because of the continuous influx of new actors (such as TTOs or accelerators), new entrepreneurial profiles and the spread of new support methods. This diversity is a crucial element in assessing the effectiveness of the entrepreneurial support ecosystem in France (Court of Auditors, 2012; Labex, 2014).
In this context, the strength of the ecosystem lies in the interactions among its actors, with relationships that are both competitive and cooperative. The concept of coopetition is useful to gain insight into these interactions (Theodoraki and Messeghem, 2014).
The aim of this new issue of Labex Entreprendre Publications is to present the entrepreneurial support ecosystem and characterize the interactions among its key actors. What elements compose the entrepreneurial support ecosystem? How do the actors perceive their ecosystem? What is the nature and intensity of the relationships among them?
To answer these questions, we conducted a national survey of 249 incubator managers in 2015. The analyses were performed globally and according to the type of support actors (economic development, technology, academic, social and private incubators, and funding agencies).
EXPLORATION OF THE FRENCH ENTREPRENEURIAL SUPPORT ECOSYSTEM
Université de Montpellier
“LABEX Entreprendre” AGL ImprimeurRue de Lantissargues - Z.A. Maurin - 34970 LATTESTél. 04 67 07 09 80 - [email protected] / 04.67.07.09.80
Assistante de directionValentina TomasTél. +33(0)4 34 43 23 [email protected]
Entreprendre et innover durablement
Fostering sustainable innovation and entrepreneurship
“ “
www.labex-entreprendre.fr
Labex EntreprendreUniversité Montpellier 1
Faculté d’AdministrationÉconomique et Sociale
Espace RichterAvenue Raymond Dugrand
CS 5964034960 Montpellier cedex 2
Tél : +33(0)4 34 43 23 11
www.labex-entreprendre.fr
LABEX EntreprendreUniversité de Montpellier
University of Montpellier
SecrétariatAdeline FerreresTél. +33(0)4 34 43 23 [email protected]
Université de Montpellier 1 - Faculté d’Administration Économique et SocialeEspace Richter - Avenue Raymond Dugrand - CS 59640 - 34960 Montpellier cedex 2 - Téléphone : +33(0)4 34 43 23 11
www.labex-entreprendre.fr
Vos contacts
DirectionKarim MesseghemTél. +33(0)4 34 43 23 [email protected]
Labex Entreprendre
Université de MontpellierUniversity of Montpellier
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For information on our activities: www.labex-entreprendre.frChair Jacques Cœur « Entrepreneurial Support »
Contact: +33 (0)434 432 311E-mail: [email protected]
DIVERSITY OF ENTREPRENEURIAL SUPPORT ACTORS
The survey respondents covered the entire spectrum of entrepreneurial support. Some limited their services to information and counseling, others offered more extensive services such as physical facilities and coworking space, and still others offered specific expertise or funding. This national survey covered all regions of France even though the southern regions tend to be overrepresented. We have grouped the respondents in 7 major types (Figure 1).
249 questionnaires including: • 66 Business incubators
• 34 Private consultants
• 33 Chambers of commerce
• 33 Academic incubators
• 21 Commercialization services for pre-nascent startups
• 15 Small business support agencies
• 15 Local funding agencies
• 12 Communities
• 10 Clusters
• 6 Business angels
• 4 Employment support cooperatives
figure 1
Eco. dev. without physical facilities
Eco. dev. with physical facilities
Academic
Technology
Social
Private
Funding agency
Figure 1. Respondent types Figure 2. The location of respondents
LABEX ENTREPRENDRE publications
PRESENTATION OF THE ENTREPRENEURIAL SUPPORT ECOSYSTEM
What is the entrepreneurial support ecosystem?
The entrepreneurial support ecosystem is a localized system, with socio-economic actors interacting and sharing a common goal. Specifically, it is composed of networks of political and institutional actors, support organizations, universities, professional associations and financial institutions that can meet the needs of incubatees. Its aim is the creation and development of firms and, more broadly, the creation of regional wealth.
Our study aims to complement the White Paper on entrepreneurial support published by Labex Entreprendre (2014), indicating the perceptions of the entrepreneurial support ecosystem actors (Labex Entreprendre, 2014, letter n°6). The ecosystem can be characterized by environmental (dynamism, heterogeneity, hostility), cultural (local culture, shared goals, compatibility) and relational (trust, opportunism, complementarity) factors specific to each region.
Our results (Figure 3) show that the environmental dimension is characterized by the broad heterogeneity of the ecosystem actors (62.9%). However, dynamism and hostility do not stand out as strong factors.
Concerning the cultural dimension, the respondents believe that the ecosystem actors share common goals. However, the low compatibility among individual cultures may explain the perception of a weak entrepreneurial culture.
The analysis of the relational dimension reveals strong complementarity among ecosystem actors (61.8%) but also a high level of perceived opportunism and a low level of confidence.
These results raise questions about the ability of the ecosystem actors to develop cooperative relationships. In addition, one might wonder whether some of them manage to simultaneously reconcile the dynamics of competition and cooperation. In other words, can we find coopetitive relationships within the ecosystem?
Figure 3. Perceptions of the entrepreneurial support ecosystem
Approval Rate Rather agree Agree Totally agree
Dynamic environmentEnvironmental
dimension
Heterogeneous environment
Hostile environment
Strong entrepreneurial culture
Cultural dimension
Shared goals
Indiv. cultures’ compatibility
TrustRelational dimension
Opportunism
Complementarity
0% 75%50%25%
Eco
syst
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36.1 %
62.9 %
33.7 %
38.2 %
33.8 %
43.9 %
35.8 %
61.8 %
43.9 %
COOPETITION IN THE ENTREPRENEURIAL SUPPORT ECOSYSTEM
Figure 4. The strategy of cooperation and competition1
1 The analysis is based on 197 responses.
LABEX ENTREPRENDRE publications
What is coopetition?
Coopetition is defined as the combination of two strategic behaviors that at first glance appear to be opposed: cooperation and competition (Brandenburger and Nalebuff, 1995). Coopetition in the entrepreneurial support ecosystem is marked by both intensifying competitive dynamics and a need for cooperation in order to meet the requirements of most public funders (Theodoraki and Messeghem, 2014).
This survey allowed us to assess the importance of three types of relational strategy within the ecosystem: cooperation, competition, and coopetition. We also sought to evaluate the nature and intensity of the interactions among the actors.
Our results show that 56.4% of the respondents had developed a competitive strategy and 76.7% had developed a cooperative strategy. Thus, nearly 40% had adopted cooperation and competition simultaneously (Figure 4). Coopetition appears to be a very common situation in the ecosystem.
The figure below shows that the intensity of cooperation is higher than the intensity of competition. We note, however, significant differences depending on the respondent and the relevant stakeholders.
The strongest cooperation intensity is observed for academic and technology incubators. Private incubators have the highest intensity of competition, whereas technology and social incubators have the lowest (Figure 5). Figure 4
Co
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Cooperation strategy
Str
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Strongly developed
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Poorly developed
Figure 5. The nature and intensity of cooperative and competitive interactions of ecosystem actors1
Co
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Co
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LABEX ENTREPRENDRE publications
TAKE-HOME MESSAGE
1/ The decline in public funds as the main source of funding and the proliferation of support services in France has prompted a reexamination of the entrepreneurial support ecosystem.
2/ The French entrepreneurial support ecosystem is composed of heterogeneous but interdependent actors who nevertheless express low trust in other ecosystem members.
3/ Incubators combine cooperative and competitive behaviors, with marked differences according to the type of incubator.
Conducted by: Christina Theodoraki, Karim Messeghem, René-Pierre Beylier, Sebastien Jesel. The authors thank all the ecosystem actors who participated in the survey and those who contributed to the dissemination of the questionnaire.
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References
- Brandenburger A. M., Nalebuff B. J. (1995), The Right Game - Use Game Theory to Shape Strategy, Harvard Business Review, p. 57-71.
- Court of Auditors (2012), Les dispositifs de soutien à la création d’entreprises, Paris, Evaluation report.
- Labex Entreprendre Publication (2014), Les structures d’accompagnement à la création d’entreprise face à de nouveaux défis, n°6, p. 4, Montpellier.
- Labex Entreprendre (2014), Livre blanc sur les structures d’accompagnement à la création d’entreprises en France. Panorama des structures d’accompagnement en termes de management et de performance, Montpellier.
- Isenberg D. (2011), The entrepreneurship ecosystem strategy as a new paradigm for economic policy: Principles for cultivating entrepreneurship, Institute of International European Affairs, Dublin, Ireland.
- Theodoraki C., Messeghem K. (2014), Ecosystème de l’accompagnement entrepreneurial : Pour une approche en termes de coopétition, Entreprendre & Innover, vol. 4, n° 23, p. 10-19.
For information on our activities: www.labex-entreprendre.frChair Jacques Cœur « Entrepreneurial Support »
Contact: +33 (0)434 432 311E-mail: [email protected]
RECOMMENDATIONS FOR ACTORS IN THE ENTREPRENEURIAL SUPPORT ECOSYSTEM
1/ INCREASE THE VISIBILITY OF ALL ACTORS
The multitude of actors in the entrepreneurial support ecosystem makes it difficult for entrepreneurs and incubatees to see clearly. A better presentation of the ecosystem actors and their respective missions and strategies would improve the efficiency of the entrepreneurial support ecosystem.
2/ PROMOTE COMPLEMENTARITY AMONG THE ACTORS
Human and financial resources affect the quality of support and thus the incubator performance. The complementarity of the actors could compensate for a lack of resources or skills and might ultimately create synergies. Specialized support and enhanced cooperation should help to maximize the synergies.
3/ CREATE A SHARED ENTREPRENEURIAL CULTURE
Regular meetings to exchange news and share knowledge and best practices, as well as entrepreneurial events, would foster the relational dynamics within the entrepreneurial support ecosystem. To increase the compatibility of individual cultures and encourage the development of a shared entrepreneurial culture within the region, policymakers can use incentive systems based on the funding of collective actions.
4/ PROMOTE COOPETITION
Although collaboration among ecosystem actors is essential, especially for pooling certain resources, competition encourages emulation, which in turn may inspire a process of continuous improvement. The result is the enhanced professionalization of the actors. Coopetition thus appears to be a means to improve support performance of the entrepreneurial support ecosystem.