How Entrepreneurship Can Revitalize Local Communities! Entrepreneurial initiatives often fail to address urgent local issues, and high-tech growth in poor regions tends to enlarge income gaps rather than creating much-anticipated trickle-down effects Ventures developed through different modes of resourcing - financing vs. local bricolage (making do with what is at hand) - grow at different spatiotemporal scales - scaling up towards fast geographical expansion vs. scaling deep towards locally anchored endurance - and consequently generate distinctive yet complementary contributions to their depleted place of origin Unlike scaling-up ventures whose local impact is explosive yet short-lived, scaling-deep ventures create jobs, products/services, and spillover effects that stay local and addressed specific local problems If the goal is to harness the power of entrepreneurship to revitalize impoverished places, we need to think about entrepreneurial ventures not as investment vehicles designed to maximize return, but as collaborative platforms that enable us to leverage local resources in creative ways to address urgent local problems. And this mindset shift has implications not only for how founders and advisors think about new ventures, but also for how policymakers support the entrepreneurial ecosystem To make a meaningful impact on local communities, business leaders and policymakers should foster a mindset of scaling deep, supporting not only the ventures that offer strong returns, but also those that lift up poorer places to achieve sustained self-reliance A great piece of research by Suntae Kim and Anna Kim. Make sure to check out the Harvard Business Review article here: https://lnkd.in/d5G2CgMB as well as the full study results here: https://lnkd.in/di5qVbqZ #innovation #entrepreneurship #impact #sustainability
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2yThank you for sharing. "Ventures that focus on scaling up may achieve financial success, but they will never turn a Detroit into a Silicon Valley by themselves. To make a meaningful impact on local communities, business leaders and policymakers should foster a mindset of scaling deep, supporting not only the ventures that offer strong returns, but also those that lift up poorer places to achieve sustained self-reliance." Ed Morrison Susan Hasty Melinda McClimans, PhD