Entrepreneurial Ecosystems in Unexpected Places : Examining the Success Factors of Regional Entrepreneurship

'Entrepreneurship can make a difference in a society when its success stories are celebrated and its lessons learned are shared. By celebrating successes and extracting lessons, this text has the potential to engage more young people, experienced entrepreneurs and curious investors, and thus make a difference in the future of the region.' --Bill Aulet, Senior Lecturer & MD, Martin Trust Center for MIT Entrepreneurship, USA, and Author of Disciplined Entrepreneurship (2013) This book sheds light on one of the biggest development issues of our time: how the rise of entrepreneurship and the associated mindset is likely to unfold in unexpected places and change socio-economic and political fortunes. Focusing on the Balkan Peninsula, the authors explore the early success of young entrepreneurial ecosystems in the region and highlight the dangers of direct comparison with more mature entrepreneurial centres. Offering fresh insights, this brand new book presents an analytical overview of the entrepreneurial domain that enabled Bulgaria to become the start-up capital of the Balkans. With empirical data gathered from over 80 interviews and case studies, the authors address the needs of decision-makers and managers in many countries which are on the path towards nurturing entrepreneurial ecosystems Acknowledgements 5 Contents 8 List of Figures 13 List of Tables 15 Part I: Entrepreneurial Ecosystems in Numbers and Quotes 17 1: What Is an Entrepreneurial Ecosystem? 18 Introduction 18 What Is an Entrepreneurial Ecosystem? 19 How Can the Construct of Entrepreneurial Ecosystem Be so Clear and Empowering to Insiders but so Elusive and Vague to Outsiders? 20 Why Entrepreneurial Ecosystems in the Balkans? 22 So What’s New? 24 Data and Research Method 26 What Did We Learn in a Nutshell? 27 References 30 2: Entrepreneurial Ecosystems in the Balkan Peninsula 32 Introduction 32 Why Would a Chinese Peroxide Company Pay US$1 Billion for a Slovenian Talking Feline? 33 Key Entrepreneurship Indicators 34 The Entrepreneurial Framework Conditions of the GEM 36 Government Programmes and the Public Sector 38 Infrastructure, Human Capital and Innovation Capabilities 42 Universities and Entrepreneurship in the Balkans 44 Talent Is Abundant 45 Entrepreneurial Finance 48 Eleven, LAUNCHub and the Accelerator Experience 50 Looking for Regional VC Investors 53 Market Functioning and Private Sector Sophistication 54 Startup Internationalization in the Balkans 54 Multinationals and the Labour Market 56 Culture 58 Media 60 Academic and Research Institutions and R&D Transfer 61 Technological Entrepreneurship 62 The Entrepreneurial Ecosystem in Romania 65 Looking to the Future 66 References 67 3: The Creation and Development of the Ecosystem: The Role of ICT 71 Introduction 71 Current Entrepreneurship Dynamics and Key Players in the Region 72 Historical Background 75 The (Re)Birth of Entrepreneurship on the Balkans 77 The Growth of the IT Industry 81 The Development of a Young Ecosystem 85 Entrepreneurial Finance 86 Finance for the Full Growth Cycle 86 Local or Foreign Investment Sources 87 Government Programmes and the Public Sector 88 Weaknesses and Challenges with Governments as Ecosystem Members 91 Academic and Research Institutions (and R&D Transfer) 92 The Lack of ‘What Is Next’ Thinking 92 Entrepreneurial Education at Early Stages 94 Marketing and Business Culture 95 Market Functioning and Private Sector Sophistication 96 Limited Market Size 99 Infrastructure 101 Culture 106 The Role of Media 111 References 113 4: Balkan Startups and the Entrepreneurs Behind Them 115 Introduction 115 Balkan Entrepreneurial Ecosystems: A First Approximation 118 Balkan Ventures in the Entrepreneurship Database Program at Emory University 120 Baltic Ventures 126 Central European Ventures 128 Startup Genome Report 131 The Startup Genome of Balkan Ventures 134 Developing Strategic Thinking in Entrepreneurs in the Balkans 147 References 149 5: Founder and Stakeholder Interests: Combining Economic and Societal Factors in the Balkan Peninsula 150 Introduction 150 The Genesis of Early-Stage Ventures 152 Entrepreneuring Profit and Purpose 152 Business Models and Business Model Innovation 155 Values and Entrepreneurship: Startup Founders’ Identities and Investors’ Interests 158 Founders’ Identities and Sensemaking 159 Market Stakeholder Interests 161 Context, Data and Methods 162 Case Study Analysis 167 Stage 1: Experiences (Personal and Proximate) 168 Stage 2: Purpose 171 Stage 3: Team Formation 173 Stage 4: Interaction with Market Stakeholders 175 Interaction with Customers 176 Interactions with Investors 177 Stage 5: Balancing Purpose and Return in Business Model Innovation 178 Conclusion 182 References 186 Part II Case Studies 196 Introduction 196 Genesis 197 Team 198 Investors and Advisors 199 Environment 201 Investment Readiness 201 6: Coherent Labs 203 Company Profile 203 Case Study 204 Lessons Learned 205 Founder Interview 205 Investor Interview 214 7: Dronamics 223 Company Profile 223 Case Study 224 Lessons Learned 226 Founder Interview 226 Investor Interview 236 8: Enhancv 242 Company Profile 242 Case Study 243 Lessons Learned 244 Founder Interview 245 Investor Interview 257 9: FITE TV 260 Company Profile 260 Case Study 261 Lessons Learned 262 Founder Interview 262 Investor Interview 272 10: Sensika Technologies 276 Company Profile 276 Case Study 277 Lessons Learned 279 Founder Interview 280 Investor Interview 289 11: Rentl.io 295 Company Profile 295 Case Study 296 Lessons Learned 298 Founder Interview 298 Advisor Interview 305 12: Telerik 310 Company Profile 310 Case Study 311 Founder Interview 311 Part III: Conclusions 320 13: Concluding Thoughts and Lessons Learned from the Birth of Entrepreneurial Ecosystems in Unlikely Places 321 Why Did We Write This Book? 321 Our Own Story and Lessons Learned 323 What Mattered? 326 What Did Not Matter (or Mattered Less)? 329 Entrepreneurship as Spirit and Way of Thinking 331 Ambitions and Being Yourself 333 Index 335 Front Matter ....Pages i-xviii Front Matter ....Pages 1-1 What Is an Entrepreneurial Ecosystem? (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 3-16 Entrepreneurial Ecosystems in the Balkan Peninsula (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 17-55 The Creation and Development of the Ecosystem: The Role of ICT (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 57-100 Balkan Startups and the Entrepreneurs Behind Them (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 101-135 Founder and Stakeholder Interests: Combining Economic and Societal Factors in the Balkan Peninsula (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 137-182 Front Matter ....Pages 183-189 Coherent Labs (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 191-210 Dronamics (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 211-229 Enhancv (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 231-248 FITE TV (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 249-264 Sensika Technologies (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 265-283 Rentl.io (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 285-299 Telerik (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 301-310 Front Matter ....Pages 311-311 Concluding Thoughts and Lessons Learned from the Birth of Entrepreneurial Ecosystems in Unlikely Places (Veneta Andonova, Milena S. Nikolova, Dilyan Dimitrov)....Pages 313-326 Back Matter ....Pages 327-332