Mapping Entrepreneurial Ecosystems: A How-to Guide

What do Facebook (now Meta), Netflix and YouTube (now Google) have in common?

Apart from the fact that they are large-scale global technology-companies, they share strongly similar origin stories - they were nurtured in rich entrepreneurial environments and supported by a dense network of entrepreneurial actors. Almost every successful entrepreneurial venture has made it ‘big’, in part, owing to the support, knowledge and expertise provided by the ecosystem and its players. One of the key elements of a flourishing entrepreneurial ecosystem is open access to the knowledge and resources for everyone, whether it is an entrepreneur or supporting player, like an accelerator, coworking space, government or startup organization. For any player in an entrepreneurial ecosystem, understanding the ecosystem, its players and the opportunities it can provide are important. Mapping an entrepreneurial ecosystem can serve as a first step in understanding an ecosystem and its players. In this article, we have touched upon mapping and interpreting the mapping of an entrepreneurial ecosystem, using a case study as an example. The case study is drawn from previous work on mapping Morocco’s entrepreneurial ecosystem for a client. The solution compiled existing data about the ecosystem and conducted 21 Key Informant Interviews (KIIs) across donors, financial institutions, and entrepreneurial support organizations to establish a baseline and uncover new insights on further needs to support small and growing businesses (SGBs) in Morocco.

Mapping out an entrepreneurial ecosystem is typically done in three phases. The first phase involves identifying all the environmental players and building out a framework to analyze the players in. Taking the example of Morocco’s entrepreneurial ecosystem, all the players in the ecosystem were identified. They were then classified according to the type of organization they were - Small and Growing Business, Event, Funder, Accelerator, Association or Government Entity. The relationships between these players were classified as Funding or Business Support based on the assistance specific organizations received from each other. The framework built in the case study is based on funding and support to small businesses. It is integral to adapt this analysis framework based on different purposes.

The second phase involves building out the visualization using a specific tool. In the case study, we used Kumu, a tool that helps build relationship maps, to gain a high-level view of the ecosystem and all its players. The circle sizes were determined by how influential players in the network were, with more influential players being represented by larger circles. Influence was determined by assessing how ‘connected’ players were with other players in the industry.

Caption: Complete mapping of Morocco’s entrepreneurial ecosystem classifying players according to type and connecting them based on their relationships

The third phase reverts back to the initial problem statement - identifying who the key players in the ecosystem are and performing a system analysis. From the mapping conducted, we can see that players, such as Morocco StartUp Ecosystem Catalyst, CCG Innov Invest, and Maroc PME play key roles in mobilizing efforts to increase access to finance for small businesses. The Netherlands Embassy and the Dutch Good Growth Fund directly support a number of funds, incubators, accelerators, and programs in the country that work with small businesses.

Caption: Key Players in the ecosystem and players that they’re directly connected to

Armed with the visualization and accompanying research, you can now perform a larger system analysis. In this instance, we were able to identify that the entrepreneurial ecosystem in Morocco has interesting development potential but faces a challenging and below-potential enabling environment in several significant areas such as limited availability of growth capital for late-stage venture funds, sub-par historical returns on early stage venture funding and lack of financial exits for early venture capital. Activities such as focusing on capacity building of incubators and accelerators, addressing dysfunction in the investment cycle which leads to poor returns and capital flight from small business investment, and catalyzing investment cycle linkages from early stages to exit in order to enable improved returns and attract capital could strengthen weak links and tackle existing challenges within the ecosystem.

This case study draws from Discovered Markets’ experience of mapping markets and ecosystems. This article outlines standard processes that have resulted in mapping and insights that clients have found useful. However, the process outlined isn’t one-size-fits-all! Adapting the process to suit the specific market needs and problem statement being solved for would lead to the solution being succinct and relevant.

Explore our full, free mapping of Morocco’s entrepreneurial ecosystem here.

Discovered Markets helps you leverage system analysis and insights to move markets. Our flagship solution on system analysis and insights provides a birds-eye view of an ecosystem and its stakeholders. Through data-driven analytics and insightful visualization, we help mission-driven organizations identify where they create impact.