The Six Domains of the Entrepreneurship Ecosystem Model, by Daniel Isenberg

Daniel Isenberg, a professor of entrepreneurship, has made significant contributions to the study of startup ecosystems. He developed the "Entrepreneurship Ecosystem Model," which helps identify the components necessary for fostering a thriving environment for startups. His model has been widely adopted and discussed by policymakers, entrepreneurs, and researchers alike.

Isenberg's model outlines six primary domains that interact with one another to create a supportive ecosystem for entrepreneurship:

1. Policy: This domain refers to the governmental and regulatory environment. Policies should be designed to promote entrepreneurship, remove bureaucratic barriers, and provide incentives for startups and investors. Examples include tax incentives, grants, and streamlined regulations.

2. Finance: Access to funding is critical for startups. This domain encompasses the availability of venture capital, angel investors, banks, and other financial institutions willing to invest in early-stage companies. A healthy ecosystem has a variety of funding sources for startups at different stages of growth.

3. Culture: The cultural aspect of the ecosystem refers to the societal attitudes towards entrepreneurship. A supportive culture values innovation, risk-taking, and learning from failure. It also includes the presence of role models, success stories, and a network of experienced entrepreneurs who can mentor and guide new startups.

4. Supports: This domain involves the availability of resources and services that help startups grow and succeed, such as incubators, accelerators, and coworking spaces. It also includes professional services like legal, accounting, and marketing, as well as educational and training programs focused on entrepreneurship.

5. Human capital: Talent is a crucial component of a thriving startup ecosystem. This domain includes the availability of skilled workers, experienced entrepreneurs, and knowledgeable investors. It also involves the presence of high-quality educational institutions that produce graduates with the necessary skills for working in startups.

6. Markets: Access to customers, suppliers, and partners is critical for startups. A healthy ecosystem provides opportunities for startups to connect with potential customers, both locally and internationally. It also involves the presence of large corporations that can become customers, suppliers, or partners for startups, helping them scale and grow.

Isenberg's model emphasizes that the success of a startup ecosystem depends on the collaboration and interaction between these domains. Policymakers, entrepreneurs, and other stakeholders can use this model as a guide to assess and improve their local startup ecosystems by identifying gaps and implementing initiatives to enhance the environment for startups.