Summary of Measuring an Entrepreneurial Ecosystem

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Measuring an Entrepreneurial Ecosystem summary
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The Kauffman Foundation is a nonprofit organization that advances entrepreneurship. In this paper, Kauffman researchers Dane Stangler and Jordan Bell-Masterson discuss four factors that will help assess whether a region or community is entrepreneur-friendly. Their handy overview explains why these factors are crucial, suggests ways to measure them and lists sources where you can obtain the relevant data. Although their analysis  focuses only on assessing – not promoting – these factors, getAbstract recommends it to entrepreneurs, investors and policy makers.


About the Authors

Dane Stangler is vice president of research and policy at the Kauffman Foundation. Jordan Bell-Masterson, a former analyst at the Kauffmann Foundation, is now an MBA candidate at the University of Chicago.



As “entrepreneurial ecosystems” develop globally, policy makers, entrepreneurs and investors seek ways of assessing their quality and predicting their growth. Measuring a community’s entrepreneurial “vibrancy,” can lead to better planning, development and investing. Look at concrete outcomes, and monitor four main criteria:

  1. “Density” – This indicator refers to the number of entrepreneurs in a given ecosystem. You can measure it, for example, by looking at the ratio of entrepreneurs to general population or the amount of companies that are less than five or ten years old. To assess...

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