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Wednesday, April 20, 2005

The Startup Ecosystem - Bay Area

David Hornik writes on what makes Silicon Valley so conducive to creating great startups - the things that makes any area conducive to business creation (the Bay Area or Boston or Austin or wherever) are an entrepreneurial culture and a supportive ecosystem of institutions and professionals. While it is certainly possible to create great businesses without those things, it is far more challenging. Places like the Bay Area tend to have a disproportionate number of individuals who are willing to bet on risky ventures. And they have a disproportionate number of lawyers, bankers, investors, accountants who have an expertise in business creation. In combination, all these things are self reenforcing and create an even stronger startup culture, which in turn creates a stronger drive towards business creation, which in turn fuels an economy of startup-focused service providers, which in turn lubricates the funding process, which in turn promotes startup growth, which in turn creates an even stronger startup culture, and so on.

Jeff Nolan Points out about a deal in LA where it is difficult to recruit a good management team,and there is not a big pool of seasoned enterprise software executives in the LA area. No doubt -location,culture, and talent all fuse together in a particular way to make a vibrant cluster of related entities as in an ecosystem,as we now see in offshoring in southern india - the Bangalore - Chennai axis, where things seem to be so conducive for doing business or in Taiwan & South Korea for OEM digital gadgets.

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Sadagopan's Weblog on Emerging Technologies, Trends,Thoughts, Ideas & Cyberworld
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