When you hear the word ecosystem, your mind goes to nature and how all manners of flora and fauna live in a complex environment that helps every species thrive. This is a perfect analogy for what we call the startup ecosystem – all the players in the ecosystem drive all businesses within it to succeed. 

The Startup Ecosystem – the Main Components 

To be a successful entrepreneur, you need to consider all facets of the startup ecosystem that you wish to enter. 

1. Environment – PESTEL factors. 

2. Investors – Where will you get the funding? 

3. Support – Startup-related organizations, forums, etc. 

4. Other Entrepreneurs – Build up your network. 

5. Suppliers – Where will you source your materials? 

6. Market – Who will be your customers or clients? 

Let’s take a look at these components in depth. 

The Business Environment 

Political, Economic, Social, Technological, Ecological, and Legal factors (Commonly referred to as PESTEL factors) are considerations that you must make before you attempt to enter a market. If one or more of these are unfavorable for your new business (E.g. You are selling a mobile app for farmers in an area where a majority of farmers don’t use mobile phones), chances are your business may never even leave the ground. Be mindful that PESTEL factors are not permanent; an economy might collapse, new laws may be enforced, or society might change its views. Your research into these factors will help you tackle this part of the ecosystem. 

Investors 

An ecosystem flush with investors eager to invest their money in your new business is the dream scenario, but like a dream, this is almost always unrealistic. You may be able

to find investors that are experienced in the industry of your choice and are keen to invest. If you are in a relatively new industry or if your product is untested in the market, finding investors will be more of a challenge. Some of the PESTEL factors, especially Economic, Technological, and Social factors may keep potential investors from giving you a second thought. This is where the next factor – Support – comes into play. 

Support 

Organizations such as Equitymatch.co are a fundamental part of the startup ecosystem in that it bridges the gaps between promising startups looking for their ideal investors and investors looking for opportunities to grow their wealth – what we call “Looking for the next Unicorn”. What we at Equitymatch.co provide is not just matchmaking between investors and startups. We have a team that can guide you, the entrepreneur, through the pitching process, give you advice and guidance on what investors look for, and prepare you for your first steps towards being invested in. 

The Internet is a friend for all new startups, because it provides you an opportunity to research the ups and downs of your business model and hone it until you have a winning combination. Online entrepreneur forums, blog articles, webinars, lectures, and social media provide ways in which to gather information as well as share knowledge and experiences with others. 

In addition, conferences, exhibitions, seminars, workshops, lectures, and presentations organized by various groups can provide valuable insights for startups. It is in the best interests of the modern would-be entrepreneur to get a feel of the startup ecosystem by participating in such events. 

Other Entrepreneurs 

The beauty of a great startup ecosystem is that other entrepreneurs would provide support and fellowship – rather than toxic competition – towards newcomers in the sphere. The events and forums mentioned above can help you get in touch with other startups that are in a similar position to yours, or have progressed to latter stages. A cooperative network of entrepreneurs will be at an advantage over individual entrepreneurs fighting each other over resources. You can never overestimate the value of knowing the right people, especially in competitive markets.

Suppliers 

Suppliers are a fundamental part of most businesses, even if you are a service provider. To what extent you need suppliers – in terms of material volumes, number of material types, etc. – depends on your business, but it is important that you have a range of suppliers from which to choose. The quality of the products you offer the market will depend on the quality of materials provided by your suppliers. Suppliers should also be able to provide the quantities that you need, when you need it. If suppliers are unreliable, your business is bound to suffer losses. Furthermore, whether you have a good supply chain is one of the fundamental questions your investors would have when you pitch your business to them. 

Your suppliers don’t always have to be already established businesses. Your network of other startups may be one way to find the suppliers you need. Startups tend to be more flexible when it comes to catering to your needs than established businesses. A strategic partnership with another startup will be a symbiotic relationship, where both startups thrive. 

Market 

None of what you do will matter if you don’t have a market for your product or service. If you are selling a niche product in a market where there is no demand for it, you are setting yourself up for failure. For this very reason, the market is the most important component to consider when considering the startup ecosystem. Considering all the other components – the Environment, the Investors, Support, Network, and Suppliers – would already have given you an insight into what the market for the product is, but doing your own research on the needs and wants of your potential client or customer base will give you good insight into whether you can succeed in that market, or whether you need to customize your product or service to the market. 

Good Ecosystems Beget Good Businesses 

The positive effects of a good business environment have been well documented throughout history, and it is imperative as an entrepreneur to be in the know about the ecosystem around you, especially if you are entering a new and untested market.