The authors explain that effective entrepreneurial ecosystems have seven types of capital: intellectual, human, financial, network, cultural, physical, and institutional. Passion is the accelerator,” he describes. Successful entrepreneurial communities have a sense of camaraderie, according to Adam Hamilton, Founder of Backstage Capital in Los Angeles. “Topophilia” or “love of place” helps strengthen the local ecosystem, according to John Hickenlooper, brewpub entrepreneur and former Governor of Colorado. “Startup neighbourhoods” have now emerged within cities, the authors explain.Ĭultural amenities also feed into such clusters, as creative classes and high-growth entrepreneurs interact with each other. More tacit knowledge transfers and serendipitous exchanges take place in such contexts. The hierarchical mode of functioning of large player should not suffocate network-based startup communities.ĭense urban co-location of partners helps accelerate “knowledge spillovers” and “external economies” as well.

He also shows how the challenges can be solved and explains which methods and tools are used by startups, such as minimum viable products, course changes and the build-measure-learn model.The authors caution that there is an asymmetry between startups and the larger players in the ecosystem, and this should not upset the viability of startups in the community. Ries describes the five basic principles of The Startup Way philosophy and points out the cultural challenges involved in introducing the approach. Rather, it is more appropriate to gradually adapt start-up principles, from the first elementary unit of work to changes in deep-rooted systems. The key message: A modern company must not position itself as a start-up or try to be “more agile” under any circumstances. In “The Startup Way” Ries describes how the principles of Lean Startup can be applied to established organizations and provides a number of impressive examples as proof, from General Electric to government institutions such as the United States Citizenship and Immigration Services, that were successfully transformed by “The Startup Way”. How a company can function like a startup is an exciting topic that is addressed in “The Startup Way: How Modern Companies Use Entrepreneurial Management to Transform Culture and Drive Long-Term Growth.” It is the follow-up to Eric Ries‘ groundbreaking book “The Lean Startup: How Constant Innovation Creates Radically Successful Businesses,” a bestseller that sold over a million copies in 2011.

The startup way