The Right Way to Build a Local Startup Ecosystem

It pains me every time I see a press release from the government of an area with no startup ecosystem that decides to dump millions into shiny facilities to "spur local startup innovation." More often than not, these initiatives end up providing a hip workspace for local freelancers to code while sitting in beanbags, but little else.

In my experience helping to build startup ecosystems in over 60 countries, the "bottom-up", slow approach is what works. Just look at emerging startup ecosystems like those in Colombia, Indonesia, and Vietnam, and you will see that the government-funded "innovation centers" don't create lasting companies - grassroots efforts led by a few local and passionate entrepreneurs are what drive results.

In my latest Forbes article, Five Steps to Build a Startup Ecosystem in Your City, I outline simple steps for startup leaders to build sustainable local startup communities from the ground-up.

The five steps include:

1. Start with a Collaborative Mentality: Startup ecosystems that operate with a "me-first" mentality die, and they die quickly.
2. Map the Local Market: Create a map of your ecosystem to help newcomers, foster collaboration, and identify needs.
3. Gather the Network: Host dinners with top local entrepreneurs, and startup events where ideas can be shared and connections forged.
4. Work with Your Government: Governments can be very helpful when the seeds of an authentic ecosystem have been planted.
5. Stay Honest: Resist the temptation to "grade on a curve" with local companies, and focus instead on metrics and honest feedback.

Give the article a read - and I would love to hear your feedback or experiences on building an ecosystem. As I describe in the article, collaboration and a sharing of lessons learned is key to driving growth.