SME Development vs Entrepreneurship Ecosystem Development

When COVID hit in March 2020, we saw a shift from supporting entrepreneurs and startups to supporting small business development centers.

Many organizations shifted the effort to ensure that small business stayed in place. Owning a small business myself, I’ve much appreciated all the effort that went into it! We here at ISM created a program to support small business development, called the Resilient Entrepreneur.

We also noticed that many startup entrepreneurs who were looking to start a business back in March or April 2020 or were on track to open in July or August 2020 were left behind with no support. Initially we ensured that their voices were heard within the organizations with which we work. Ensuring that programs supporting new and aspiring entrepreneurs continues despite COVID could mean an opportunity for someone to deliver a new service or program, or replace an existing business that chooses to opt out.

In the past, crises have created opportunities. Many studies from Kauffman Foundation and other organizations show that most companies or large institutions today — including Microsoft and Google — were established in economic down times. 

What we have seen over the past few months — especially since January 2021 — is the rejuvenation of entrepreneurship ecosystem development focused on small and medium enterprises.

From my perspective, having worked with entrepreneurs, governments, and economic development agencies in over 60 countries around the world, these two go hand in hand. While each requires special skills and tools, they support each other by ensuring there are entrepreneurs looking for opportunities to create solutions and ensuring that small business is supported so they continue creating value for current and prospective customers.

One example is rental cars. We saw that some flight corporations no longer exist because many businesses stopped funding flights and travel. Many of the local travelers began to rent cars to go on a trip or experience something different.

Understanding that these shifts happen, a small business needs to focus on how to sustain itself.

BEFORE YOU GO

We see our blogs as opportunities for dialogue. Please share your thoughts as comments.

As an economic development agency or a corporation that supports the economy within a state or country, think about:

1. What are you doing to support startups today?

2. What are you doing to support small business development centers?

3. What are you doing to cultivate the ecosystem so it continues to evolve?