In definition, a startup ecosystem is a network that consists of driven individuals, young professionals, beginner entrepreneurs, and even established startup companies with a collective focus of forming an organized network. The ecosystem’s main goal is to form new startup ventures and also to strengthen existing ones.
The main factors that determine the structure of a start-up ecosystem include both external and internal pointers. These primarily include the state of the domestic and international financial climate, recent and predicted disruptions in the market, defining transitions within large companies, and even global financial bubbles.
Most of the interactions of startup ecosystem may take place in a physical environment, but since these networks involve members from all over the globe, the system can also be organized in a virtual location.
Coming from different geographical and cultural background, they have different strategies to entrepreneurship and access to necessary resources. That is why, even if several organizations belong to a single start-up system, they are expected to take on different projects and approaches.
The success of a startup ecosystem depends on the availability of vital resources such as time, money, and most importantly, skills. These vital components are expected to come from the individuals, groups, and organizations that comprise the entire ecosystem.
Even if the members of an active startup ecosystem may come from every part of the world, interactions, may it be physical or virtual, remain important. Planning of meeting, events, and conferences can enable the flow of these resources, fueling ideas for potential entrepreneurial ventures as well as strengthening existing startup companies.