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TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 1
TheTampaBayEntrepreneurialEcosystem:TheTideisHigh
RebeccaWhite,DianaHechevarría,SiriTerjesen,ZoltanAcs,andDavidAudretsch
Acknowledgement:SpecialthankstoallintervieweesintheprojectandtoJacobVanLoon,UniversityofTamparesearchassistant,andMelanieHicks,fortheirinput,assistanceandsupport.
Forward
OpeningAddressbytheHonorableBobBuckhorn,Tampa’s58thMayor,ontheeveningofNovember15th,2016whenthefindingsofthisresearchwerepresentedtotheTampaBaycommunityattheLowthEntrepreneurshipCenter,SykesCollegeofBusiness,UniversityofTampa,TampaFL.Firstofall,it’sbeenaninterestingweekandIcouldn’tbemoreexcited.Thishasbeenthehighlightofmyweektoseeallofyouhere,preparedtoembarkon,whatIthinkwillbe,oneofthemostcriticalchaptersofTampa’sexistence.AsRebeccasaid,I’vebeenthemayorsince2011.WhenIcametooffice,thiswasacitythatwasadonorstateofourtalenttoothercities.Someofthebestandbrightest,whoIseealongthewallhere,wereleavingforotherhigh-techplacesthathadanecosystemthatwasrewardingentrepreneurs.Thenyouthinkabouthowfarwehaveprogressedasacity,notjustintermsofbrickandmortarthatyoumaysee,Imeanthiscityreallyisinthemidstofanamazingtransformation,andthenexttenyearsaregoingtobemostcritical!ThisUniversityandthe[Lowth]EntrepreneurshipCenterispartofthataswestarttogrowandcreatethatentrepreneurclassandswagger.Thatbeliefinyoungstudents-thattheycandoanythingandbeascreativeasthey’dliketobe,whilegettingthetraining,leadershipandmentorshipthattheyneed.And,theywillgooutandbecomethatnextgenerationofleadersandentrepreneursthatwilldriveourcityforthenextdecadetocome.So,Icouldnotbemoreexcitedaboutwhatweareabouttoheartonight,becauseIthinkit’sourroadmaptoamuchbetterfuture.MyabilityandourabilitytokeepourkidsinFlorida,dependsonyou.It’sthatsimple,I’mnotlosingmydaughtertoCharlotte,NC,Nashville,TN,Austin,TX,ortoSiliconValley.Iwantmydaughterandyourstobehere.You,andthey,representamuchbrighterfutureforourcity.Wecan’tdoitonahopeandaprayer,either.Wehavegottohaveaplanwhichiswhatyou’regoingtohearabouttonight-thenwehavetogoexecute.Wehavetotakewhatwearegoingtolearntonight,andnotputitontheshelfandsaythatwasnice,butwehavetotakethisblueprintandexecutemovingforward.Ipromiseyouthis.Thefoundersofthismovementtookmeundertheirwingandtoldmewhattheyneededtobesuccessful.Cheapland,cheaplabor,andcheaptaxesarenotgoingtocutitanymore.Ifwearegoingtohavethethirdlargest
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 2
economy,ifwearegoingtodrivethiscountrymovingforward,wehavetocreateanenvironmentwhereentrepreneursarewelcome,honored,andallowedtosucceed.Myjobistobethecheerleaderinchief,celebrateyoursuccessesandpropyouupinyourfailures…[and]createaplacewhereyoucanbesuccessful.Thatspiritresonatesthroughoutthiscommunity.Wecannotjustdevelopcommunitiesanymore.Ourfuturelookslikewhatisemergingfromcenterslikethis,andatUSF,theresearchathospitals,itisafuturethatisverydifferentfromFlorida’spast.Let’stakewhatwearegoingtolearntocreatethatblueprint.Ineedyoutobelieveinthecapacityforthiscitytobecompetitive,tobethatplacethatAmericawillinvestinthebestandbrightest.Iwantyoutobringyourfriendsherebecauseifyouareabletoattracttalent,thenwecanattractjobsandmoreentrepreneurialtalent,andcorporationsbecausetheywillcomewherethereistalent.Gobesuccessfulanddon’tletanyonetellyouthatyoucannotsucceedbecauseultimatelyit’snotwhathappenswhenyougetknockeddown-becauseIpromiseyouwillgetknockeddown-it’swhathappenswhenyougetbackup,wipethatbloodoffyourchinandbecomesuccessful.And,don’tforgettohelpyourfellowfriendsandentrepreneursalongthewayandalwaysrememberthatthisisbiggerthanjustyou.
ExecutiveSummary
TheTampaBayEcosystemStudywasfundedbytheEwingMarionKauffmanFoundation
(KansasCity)andconductedthroughtheJohnPLowthEntrepreneurshipCenter,SykesCollege
ofBusiness,UniversityofTampa.TheresearchteamincludedZoltanAcs(GeorgeMasonU),
DavidAudretsch(IndianaUniversity),DianaHechavarria(UniversityofSouthFlorida),Siri
Terjesen(AmericanUniversity)andRebeccaWhite(UniversityofTampa).
Thepurposeofthestudyistwo-fold.First,theteamsoughttoexpandthelimitedcurrent
theoryinentrepreneurialecosystems.Second,theprojectsoughttobetterunderstandthe
specificstateoftheecosysteminTampaBayandcreateabaselineforfutureresearch.
Theresearchteambeganbyreviewingandsummarizingtheextantacademicliteratureon
entrepreneurialecosystems(tobepublishedin2017inSmallBusinessEconomics).Inaddition
totheacademicfindings,bestpracticesfromotherecosystemswerereviewedandcompiled
andacomprehensivelistofESOsintheTampaBayregionwasassembled.Secondarydataon
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 3
theTampaBayMSAwasgatheredtodetermineabaselineandmeasurethecurrentstartup
andinvestmentactivityintheTampaBayecosystem.Oncethisdatawascollectedand
analyzed,In-depthinterviewswereconductedwith43individualsfromverydistinctgroups
includingpolicymakers,regionalbusinessdevelopmentmanagers,investors,incubator
managers,entrepreneurialserviceproviders,entrepreneurswhostartedtheirventuresin
Tampa,entrepreneurswhorelocatedtheirfirmstoTampa,entrepreneurswhotooktheirfirms
publicfromTampa,andentrepreneurswhorelocatedtheirfirmsfromTampa.Baseduponthe
findingstheauthorsdevelopedageneralmodelforanalyzingthemaininfluencesunderlying
entrepreneurialecosystemsandappliedthemodeltoTampaBay.Furtherrelatedacademic
workisinprocess.
Toanalyzeandsummarizingthefindingsofthequalitativeportionofthisstudy,theresearch
teamusedtheTheoryofBottlenecksdevelopedbyoneoftheauthors,ZoltanAcs,inhiswork
ontheGlobalEntrepreneurshipIndex(GEDI)toprovideinsightintothestrengthsand
bottlenecksintheTampaBayEntrepreneurialEcosystem.TheTampaBayEntrepreneurial
Ecosystem’skeystrengthsincludeastrongandpositiveenergydirectedtowardsthe
developmentofastrongecosystem,adiversepopulation,ampleknowledgespillover,lowcost
ofliving,lotsofincubationopportunitiesandanexcellentinternationalairport.Bottlenecks,or
areasthatimpedegrowthanddevelopmentoftheecosystem,includealackofvisionandalack
ofcollaboration(andredundancy)amongecosystemstakeholders,lackofastrongurbancore,
lackofactionabledirectiononpublictransit,limitedcorporatebuyersforentrepreneurs’
products,aperceiveddifficultygettingourstoryoutvianewsmediaoutlets,talentneedsfor
individualswithcodingskillsandCEOleadershipskillsandexperience,andalackoffundingfor
earlystagecompanieswhoneedmorethan$1m.Thetheoryofbottleneckssuggeststhatuntil
theseissuesareaddressedtheecosystemwillnotgrow.
Baseduponthefindings,theauthorsextendedpreviousKauffmanFoundationresearchtooffer
amodeloftheTampaBayEntrepreneurialEcosystem.Thefindingsfromtheyear-longstudy
aresharedinthefollowingsectionsandwerepresentedataneventonTuesday,November15,
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2016,attheJohnPLowthEntrepreneurshipCenter(SykesCollegeofBusiness,Universityof
Tampa).Thegoaloftheeventwastobringtogetherinterestedpartiestobeginaconversation
abouthowTampaBaycancollectivelyusethesefindingsandestablishasystemofmetricsto
strengthenthealreadydynamicandemergingentrepreneurialecosystemintheregion.
Introduction
TheTampaBayMSAhasapopulationofapproximately3millionpeopleandincludesthefour-
countyregionofHillsborough,Hernando,PascoandPinellasCounties.Thethreeprinciplecities
inregionincludeClearwater,TampaandStPetersburg.Locatedinthethirdlargeststateinthe
USandwiththelowestcostofliving,Floridaisbecomingmuchmorethanavacation
destination.InarecentstudybyForbesofthe“BestStatestodoBusiness”i,Floridaclimbed
morespotsthananyotherstate(8)tobelistedasthe12thbeststateintheUSforbusiness.
Amongthereasons:FloridarankedsecondamonglargerstatesintheKauffmanFoundation’s
“indexofstartupactivity”ii.
WhileonmanyfrontsMiamiholdsthenumber1spotinthestateforstartupactivity,Tampa
Bayisastrongsecondandisamoreaffordableandeasyplaceforentrepreneurstodo
business.Infact,TampaBayisamongthemostaffordableplacestodobusinessintheUnited
States.AccordingtoKPMGratings,Tampaearnedthe#6spotforMostCost-FriendlyBusiness
LocationsAmongLargeU.S.Cities,outrankingDallas,Cleveland,andBoston.KPMGalsonoted
thatTampaandHillsboroughCountyhavethethirdlowestlaborcostintheU.S
InarecentForbesarticle,JeffVinik,formerFidelityMegellanFundManager,discussedwhyhe
choosetobetonTampaBay.ShortlyafterbuyingtheTampaBayLightninghockeyteamand
movingtoTampaBay,MrVinikhasinvestedbillionsalongsideBillGate’sCascadefundinthe
Tampawaterfrontarea.WhenaskedwhyhechoseTampaBayhesaid,“Thebigreasonwas
movingtoandadoptinganareathathasrealpotential.Thisisagreatplacetolive.Peopleare
friendly.IviewthewholeTampaBaymarketasbeingveryundervalued,veryunderappreciated.
It’sfullofeager,ambitiouspeople,butneverreallycaughtonintermsofstrongeconomic
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growth.Butithasalltheingredientstobeagreatplacetoliveworkandplay….Thisisacity
earlyinitsgrowth.It’saprocessandwe’reinthebeginningtomiddlestagesofthatprocess.As
someonewho’saninvestor,Ilookforpotentialandthishaseverybitoftherawmaterialstobe
agreatplace.”iii
TheTampaBayMSAisbecomingahotbedofeconomicopportunity,yetoutsideoftheTampa
BayMSA,theregionisstillonlyknownasavacationdestinationoraplacetoretire,despitethe
factthattheaverageageofTamparesidentsis34.8whiletheUSmedianageis37.2.Thegoal
ofthisresearchistotellthestoryofTampaBayandtobegintheprocessofputtinga“fitbit”on
theTampaBayentrepreneurialecosystem.Inotherwords,theauthorsexpectthistobethe
firstoutputfromongoingresearchthatwillprovidevitalstatisticsonthehealthofthebusiness
environmentthatincludesentrepreneursandotherstakeholdersthatfuelstartupsandearly
stagecompaniesintheTampaBayMSA.
EntrepreneurialEcosystems
Entrepreneurialecosystemsareprimarilyabouteconomicperformance.Communitiesinvestin
entrepreneurialecosystemsforavarietyofreasons.Whilebusinesshaslongbeenviewedasan
engineforeconomicgrowthandwealthcreationandcriticaltogainingregionalandnational
advantage,today,entrepreneurshipisalsoviewedasasolutiontosocialproblemsandas
havingtheabilitytoprovidethenecessaryemancipationto individualstopursuefreedom,
financial independence,andescapethestatusquo.Ahighperformingentrepreneurial
ecosystemleadstoincreasedknowledgespilloverandinnovativeness,andtheopportunities
thatemergebecomeinfluentialinaregion’sabilitytoattractandretainthebestandbrightest
talent.
What dowemeanby an entrepreneurial ecosystem? The idea of an ecosystem is borrowed
from thebiological sciences and canbedefined as: “…a community of interactingorganisms
and their physical environment.”iv Ecosystems are robust, scalable and can solve complex
dynamicproblems.
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Andwhatarethecomponentsofanentrepreneurialecosystem?Anyecosystemhasthree
components:thecommunity(agents,non-agents,andnutrients),thesystem(howitworks),
andtheoutcome(ahealthysustainableplacefortoexist).Therecipeforanentrepreneurial
ecosystemisthesame.Andthus,itisoftenthoughtthattheingredientstothiseffortcanbe
formulaicallyapproached.Identifyentrepreneurs(agents),addeducationalinstitutionsand
entrepreneurialsupportorganizations(non-agents)andmixwithinvestors(nutrients),andthe
desiredoutcomeisastrongandvibranteconomy.However,effortstodosohaveoftenstalled
anddeeperstudyoftheseecosystemshavebeguntorevealthatthesystemisoftenmessy,
complexandmoreemergentthanplanned.
ThepurposeofthisstudyistodoadeepdiveintotheTampaBayecosystem.Towardthisend,
theauthorsreviewedthedevelopmentoftheliteratureonentrepreneurialecosystemsvandin
agreementwithresearcherBenSpigelviwhosuggeststhat“…ecosystemtheoryshouldfocuson
theinternalattributesofecosystemsandhowdifferentconfigurationsoftheseattributes
reproducetheoverallecosystem…”developedamodelfortheTampaBayMSAbasedon
groundedtheoryandinformedbytwopreviousmodels.
Tobettercategorizeandunderstandthefindingsfromourstudyparticipants,weappliedthe
TheoryofBottlenecksadaptedfromtheworkAcs,Autio,andSzerbvii.Thebasicpremiseofthis
theoryisthatsubsystemvaluesorpositiveaspectsare‘penalized’bypoorlyperforming
subsystemsandthuscompromiseoverallperformance.Byfocusingonthebottlenecksinthe
system,communityeffortsandresourcescanbeadvisedtoseektoaddressthosefirstsothat
themorepromisingaspectsofthesystemcanfunctioneffectively.Second,weusedthe
IndicatorsofEntrepreneurialEcosystemVibrancyviiidevelopedbyStanglerandBellMasterson
toguidetheframeworkforthesystemcomponentsofthemodelformeasuringthe
entrepreneurialecosystem.
AboutTampaBay
TheabilitytounderstandtheTampaBayecosystemandproviderecommendationsthatcan
helpimprovetheMSA’sabilitytospawnandnurturenewventuresrequiresadeepknowledge
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 7
ofthepresentsituationandhistoryoftheecosystem.TampaBayiscurrentlyrankedasthe18th
largestMSAinthecountry,andisthefastestgrowing—receivingnewresidentsfasterthanany
otherareaofthecountry.TheTampaBayareaisdemographicallydiverseandisoftenchosen
asatestinggroundduetothearrayofethnicandagegroupsthatcallithome.TheTampaBay
MSAisalsogeographicallyunique,consistingoffourcountiesandtwourbancores.The
locationontheGulfCoastofFloridaprovidesadeepwaterport,alogisticalhubforshippingto
OrlandoandothersuburbanareasaswellasauniquerelationshipwithneighboringCuba.
RoundingoutTampaBay’sassetsarethreecommunitycolleges,privateandpublicuniversities,
andUnitedStatesSpecialOperationsCommandattheMacDillAirForceBase.
TheTampaBayareajumpedfourspotsintermsofgrowthentrepreneurship,from30thto26th,
asdeterminedbytheKauffmanIndexinonlyayear’stime.Thismeasurementisdeterminedas
thepercentagegrowthofyoungfirms,intermsofemployment,fiveyearsafterfounding.
TampaBayjumpedfromagrowthrateof21.33%allthewayto56.79%between2015and
2016.
Inanothermeasure,startupactivityindexprovidedbyKauffman,Tampajumpedfromthe21st
spotto19thoutofall382MSAsintheUnitedStates.Themeasureexaminedthepercentageof
theadultpopulationthatbecameentrepreneursinanygivenmonth.In2016,.35%ofthe
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 8
populationstartedabusinessasopposedto.30%in2015;constitutingajumpthatoutpaced
thepopulationsofSanDiegoandKansasCity.
ThedemographicspointtoaTampaBayapproachingthehighestperformingareasinthe
countryintermsofstartupactivity,butjustnowcomingintoitsownintermsoffirmgrowth.
Thecommunityhasrespondedtotheshiftawayfromthelegacyindustriesofrealestateand
tourismwithpolicyleadersspeakingoutinsupportofentrepreneurialefforts,universities
investingintheirentrepreneurshipprogramsforstudentsofallbackgrounds,andthecreation
ofahostofsupportorganizations.Theresearchteamfound64entrepreneurialsupport
organizations,providingcoaching,networking,co-workingspace,orresourcesthroughthe
universitysystem.
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Manyofthesesupportorganizationsarenew,withonlyahandfulbeingactiveformorethan
thepastfiveyears.Manyoftheseorganizationsofferduplicativeservicesthatmayactually
createabottleneckfortheecosystem,butbrightspotsincludeanationallyranked
entrepreneurshipeducationprogram,worldclasstechnologyincubator,andapartnership
organizationsourcingtalentandideasfromthecivilianpopulationforfundingbythemilitary.
StudyMethodology
OurinvestigationoftheentrepreneurialecosysteminTampaBayhastwogoals:(i)tobuild
furtheronthetheoryofecosystemsandpavethewayformoregranularandquantitative
studiesinthefutureand(2)toapplythetheorytobetterunderstandthespecificstateof
TampaBayandtopointtoopportunitiesforimprovement.Toreachthesegoals,theteam
initiatedaqualitativestudyintheTampaBayMSA.
Thisstudyissupportedbyquantitativedata,buttherealinformationisinthestories,
experiences,andperceptionsofthoseinterviewed.Thesamplewasbrokendownintoeight
categoriesinordertogatheravarietyofperspectives:nascententrepreneurs,experienced
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entrepreneurs,supportersofentrepreneurship,venturecapitalists,angelinvestors,public
policyleaders,bankers,accountants,&lawyers,anduniversityleaders.Ecosystemplayerswere
interviewedwithastandardsetofquestions,butwithflexibilityinthescripttoallowforthe
pursuitofspecificdetails.TheTampaBayEntrepreneurialEcosystemsteamproposedagoalof
30in-depthinterviewsandrecorded43interviewsoveraperiodofninemonths.
Inadditiontoalistofprospectsdevelopedbytheteam,additionalparticipantswereidentified
throughsuggestionsfromintervieweesaswellasresearchthroughnewsmediaand
professionalnetworking.Gapswereaddressedbysourcingintervieweesfrommultiplecounties
andindustries,andtheteamensuredthattherewereseveralinterviewsineachcategoryof
ecosystemplayer.Theinterviewslastedbetween30minutestouptoanhour(averagetime45
minutes)andwereoutsourcedforprofessionaltranscription.Thetranscriptionswereuploaded
intoasingledatabaseusingNvivosoftwareforqualitativeanalysis.
Codingqualitativedataisaprocessof‘meaningcondensation’withtheresearchteamagreeing
onrelevantthemesor‘nodes.’Nodescanbeaslongasasentenceormultiplepagesoftestand
canbeoverlapped.Throughreviewingandcodingseveralhundredpagesofinterviews,all
possiblecommonthemeswereexhaustedwithjustunder200nodes.Thegenerationofnew
codesstoppedatapointreferredtoas‘theoreticalsaturation’wherealladditionalcodes
becomereusedfromtheestablisheddictionary.Allnodeswerereviewedasecondtimewithan
eyeforrelationshipsandwerethenorganizedintosethierarchies.Thiscodingprocessfollowed
thetraditionof‘GroundedTheory,’wheretheteamallowedrelationshipsandvariablestorise
outofwhatwastranscribedwithoutinfluencefromtheoreticalpreconceptionsaboutthe
potentialfindings.
Findings
StrengthsandBottlenecks
Thein-depthinterviewprocessaffordedtheresearchteamwithanopportunitytounderstand
morefullythecomplexityoftheTampaBayMSAentrepreneurialecosystem.Notsurprisingly,
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manyofthedimensionsprovidedmixedresultsfortheresultingecosystem.Forexample,the
TampaBayinfrastructurecannotbedescribedaseitherfullysupportingornotsupportingthe
ecosystem.Intervieweesconsistentlymentionedtheinternationalairportsasbestofclass(TPA
consistentlyrankedasoneofthebestinthecountry)yetlackoftransitintheTampaBayMSA
wasjustasfrequentlymentionedasoneofthebiggestchallengesintheregion.Moreover,with
regardtoinfrastructure,thelackofastrongcentralurbancorewasalsomentionedfrequently
asaproblem,however,hotspotsinYborCity,StPetersburg,andthemuch-anticipatedrevival
oftheChannelsideDistrictwereidentifiedasassetsfortheecosystem.Thoughsomeefforts
areunderway(anewferrysystemforexample)thelackofaplantoconnectthesehotspots
witheasyandaffordabletransportationwasviewedasabottlenecktotheecosystem.
Anotherimportantpositivetakeawaywasthevibrancyandpositiveenergydirectedtowards
entrepreneurshipintheMSA.Weheardfrommanyintervieweesaboutalargecollectiveof
like-mindedindividualsworkingtirelesslyandaltruisticallytosupportentrepreneurship.Infact,
ourresearchidentified64ESOsintheTampaBayMSAatthetimeofthestudy.Inaddition,
diversityamongthepopulationintheregionalongwithstronguniversitiesandpopulation
growth(anaverageof200peopleadaymovingintoTampaBay)wasfrequentlymentionedby
thoseinterviewed.Inaddition,governmentsupportwasidentifiedasstrongandthissupport
wasdisplayedbygovernmentofficialsweinterviewedwhoeachexpressedstrongsupportand
citedsignificantresourcesinvestedtosupportentrepreneurship.However,interestingly,those
forwhomthesystemiscreateddidnotseetheresultingoutcomeasmuchasasafelynetasa
challengetoutilize.Entrepreneurs,whileexpressinggratitudeforthesupport,feltthe
entrepreneurialsupportorganizations(ESOs)andpublicofficialswerefrequentlymore
competitivethancooperativeandthatthesystemwasdifficulttonavigate,costlyandnot
worthit.
Accordingtooneentrepreneurinterviewed,"...Youendupspendingsomuchmoneyjoiningthe
ESOsandlearningtonavigatetheecosystemasanentrepreneur."Another
entrepreneur/investorsharedthefollowingabouttheecosystem:
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"Anotherbigchallengewhichyouguyscansolveisthatwehavetoomuchfracturewith
alltheprogramsthataretryingtodrivethesuccessoftheecosystems.Itcomesfroma
perspectiveofmorecompetitivethancollaborative.Austinhadsimilarsituationand
AustinVenturepartnerskindofcorralledeverybodytogether.Ithinkthat...[weneed]
sometypeofinitiativewheretheyareallworkingtogethertogrowinthesame
direction."
Butitwasn’tonlyentrepreneurswhowereconcernedaboutalackofcooperationand
collaborationamongecosystemsupporters.EvenanESOrepresentativeshared"...Infactwhat
weseeismorecompetitionamongtheESOsratherthancoordination."Andoneinvestoradded
thefollowing,"...alotofwhatwe'retalkingaboutisthekindofconnectivetissuebetween
everything,makingsurethatpeoplearenotreplicatingeachother'sworkandmakingsurethat
it'salleffective."
Tampa’sbusinessecosystemhaslongbeenbasedonsmallbusinesswithsomeunique
characteristicsandintervieweesfrequentlyacknowledgedtheimportanceofavarietyof
componentsintheTampaBayeconomythatprovidesignificantopportunityforknowledge
spilloverandentrepreneurship.TampaBayishometoelevenportsandhaslonghadthe
advantageofwaterlocation.Moreover,theclimate,strategiclocation,andlowcosttolive
haveledtostrongbusinessopportunitiesinhospitalityleadingtothebirthandgrowthofsuch
companiesasBloominBrands.SeveralofTampaBay’ssmallcompanieshavegrownintomajor
Fortune500firms;examplesincludeTechData,WellCare,andRaymondJameswhichwereall
foundedinTampaBay.OtherfirmssuchasHSNhavegrownfromhumbleTampaBayrootsto
becomehouseholdnames.InadditionTampaBay’slargeimmigrationpopulationoverthe
yearsledtoanumberofsmallfirmsandcottageindustriessuchasthecigarindustryinYbor
City.TampaBayalsobenefitsfromthepresenceofMoffittCancerCenterandResearch
InstituteandtheMcDillAirForceBasewhichhousesthe6thairmobilitywingoftheUSAirforce,
aswellasamulti-servicebaseandhometoSpecialOperationsCommandandCentral
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Commandandthushousesallbranchesofthemilitary.Takentogether,thesemanyresources
createanexceptionalopportunityforinnovationandentrepreneurshipinTampaBay.
However,aboveallelse,theTampaBayeconomyhaslongbeenbasedonrealestateandthe
strongfocusonrealestateasaprimaryinvestmentvehicleintheTampaBayareaposesa
problemforentrepreneurs.Whilemanyentrepreneursinterviewedacknowledgedapresence
ofmoneyavailableforinvestment,theyalsonotedaproblemwithgettingfundingforanynon-
collateralizedinvestment.Toparaphraseandsummarizethefindings,InSiliconValley,
investorsareafraidofmissingthenextbigopportunitywhereasinTampaBay,investorsare
alwayslookingforthenextbigopportunity.Accordingtotheinterviewees,thatsubtle
differenceofstandingonthesidelinesandwaitingsuggeststhatinvestorsinTampaBaydon’t
fullyunderstandhowtoevaluateriskinearlystageinvestmentsandtheresultingoutcomeisa
lackoffundingfornewventuresespeciallyintheB2Cspaceandforearlystagefundingneeds
over$1m.
Withrespecttohumancapital,thefindingswereagainmixed.Whiletheintervieweeslauded
thestronguniversitiesintheregionandlowcostfortalent,theyalsoidentifiedlowwages,lack
ofastrongtechmarket,andtalentgapsincodingandCEOreadyleadershipaschallengesfor
entrepreneursintheTampaBayarea.Inparticular,theintervieweescitedthelackofaclear
directionandbrandfortheecosystemasamajorchallenge.Inparticular,thefactthatTampa
Baydoesn’thaveabrandandisn’tknownbeyondthebaymeansthatinordertoattract
entrepreneurialtalentandinvestmentcapitaltotheregion,educationandinformationabout
theopportunitiesandadvantagesoftheregionhavetobecommunicatedbeyondtheTampa
Bayarea.
TheModel
Likeanyecosystem,theTampaBayEntrepreneurialEcosystemcanbeconceptualizedashaving
threecomponentsthatexistwithinitsgeographicboundaries:1)thecommunity(agents),2)
thesystem(dynamics),and3)theoutcomes.Whileitisanticipatatedthatthismodelwillhave
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 14
applicationoutsideofTampaBay,theauthorssuggestthatthemodelasdesigned,especially
withrespecttothesystemdynamics,describestheTampaBayecosystem.
Agency.
Theheartofanentrepreneurialecosystemisthepeople.Therearebothprimaryandsecondary
stakeholderswhoengageinandbenefitfromtheecosystem.Inourresearch,threeprimary
agentsinanentrepreneurshipecosystemmodelwereidentified:theentrepreneurs(founders,
topmanagementteamsandemployeesofthecompanies),thestakeholders(vendors,
customers,investors,entrepreneurialsupportorganizations[ESOs],governmentleadersand
citizenry),andstewards(neutralthirdparties).Individualsororganizationsmayserveinmore
thanonecapacity.Forexample,allcitizenrycanlogicallybeplacedinthestakeholdercategory
whenoutcomessuchaseconomicdevelopmentandenhancementoflifestyleareconsidered.
Baseduponourfindings,theneutralthirdparty,orstewardship,isoftenthemostchallenging
roletofill.Thepresenceorlackofaneutralthirdpartywascitedfrequentlyinourresearchasa
gapinTampaBayandassomethingthatwaspresentinothercitiesthatourintervieweescited
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 15
asstrongentrepreneurialecosystems.Inmostcitiesmentioned,thestewardshiproleemerged
fromacollaborativeeffort.Typically,universitiesorbusinessesthatdrawsignificantlyfrom
outsideoftheregionorindependentlywealthycommunityandbusinessleaderswerethemost
likelycandidatestoserveinthiscapacity.Forexample,theintervieweesmentionedPittsburgh,
wherethegrowthcamefromuniversityandcitycollaboration,andSanDiegoConnect,where
UCSanDiegopartneredwiththeChambertoprovidethisleadership,andtheEntrepreneur
CenterinNashville,whichisanincubatorthatemergedfromapartnershipbetweenthe
NashvilleChamberandpreviouslysuccessfulentrepreneurs,asmodelsofthisstewardship.
SystemDynamics.
UsingtheKauffmanstudyasabasisforunderstandingthesystem,theteamfoundevidenceof
six(6)systemvariablesinTampaBay.Thefirstfourarebasedonthepreviouswork;however,
inTampaBaythesefourdidnotfullydescribethesystem.Inaddition,theresearchprovided
evidenceoftheexistenceoftwoadditionaldimensions–vibrancyandredundancy.
• Density–thekeymeasureofanecosystem,thisfactormeasuresthenumberofnew
andyoungentrepreneursandstartups,theshareofemploymentfornewandyoung
firms,andidentifiesdepthinlegacyindustries.
• Fluidity–movementinandoutofaregion(measuredbypopulationchanges).Astrong
ecosystemhasfreshnewperspectivesandpositivepopulationgrowthtoallowfor
remixingofpeople.
• Connectivity–theconnectionsamongtheelementsandtheavailabilityofsocialcapital
matterasmuchastheelementsinanentrepreneurialecosystem.Thenumberof
elementsisnotthekeyasmuchasthecollaborationamongthem.
• Diversity–citiesthatspecializeinmultipleeconomicareasandhavediverse
populationswillenjoygreatercreativeoptionsandoutcomes.
• Vibrancy–whenorganized,thevibe,positiveenergy,anduniquecultureofaregioncan
leadtothecreationofarobustentrepreneurialenvironment.
• Redundancy–duplicativeservicesandcompetitionforresourcesamongESOsinthe
ecosystemcanunderminesuccessandreducecollaboration.Immatureecosystemswill
exhibithighratesofredundancyuntilthesystemreachesastateofhomeostasis.
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 16
SystemOutcomes.
SystemOutcomesareuniquetoaregionandmustbedesignedbytheecosystemagents.
However,oneneedonlylookatcitieslikeAustintounderstandwhyanentrepreneurial
ecosystemisdesirable.Austinexperiencedoneofthemostexceptionaltransformationsinthe
U.Surbanlandscape,growingfromastatecapital/universitytownofunder400,000in1970to
aleadingtechnology-basedregionwithapopulationoftwomilliontoday.Inthe1970s,a
numberofregionssharingAustin’sbasiccharacteristics–majoruniversity/statecapitalcity,a
highlyeducatedworkforce,agoodamenity/quality-of-lifemix;however,onlyafewcitieslike
AustinandSanDiegocametogethertopurposefullybuildanentrepreneurialecosystem.
However,inordertotransformabusinessecosystemtoanentrepreneurialecosystem,a
“collaborativeoutcomesvision”isrequired.Theoutcomesmayincludeoneormorefactors
suchas:economicdevelopment,morehighpayingjobs,newbusinesses,innovation,creative
solutionstoproblems,abilitytokeepbrightyoungtalentintheregion,prosperity,andhigher
qualityoflife.
TampaBay’sEntrepreneurialEcosystem
Agency.
WithrespecttothecommunityoragentsintheTampaBaysystem,therewereample
entrepreneursandstakeholders(asdiscussedpreviously),however,onekeythemethat
emergedwasalackofleadershipandvision.Theabsenceofaclearleadershipforthe
ecosystemisoneofthekeyfindingsofthisresearch.
SystemDynamics.
Ourfindingsindicatethatallbuttwoofthesixdimensionshavebothpositiveandnegative
items(fluiditywasallpositiveandredundancywasallnegative)inTampaBay.Regarding
connectivity,TampaBayisweak,withnegativesoutweighingthepositivesbyamarginof5to
1.However,vibrancywasjusttheoppositewithmostlypositivefindings.Densitywasamixed
reportwithasmanypositivesasnegatives.Thelistingbelowillustratesthesummarizedresults
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 17
oftheresearchonthesystemdynamicswhereaplussign(+)isusedtoindicatepositive
responsesandanegative(-)signisusedtoidentifynegativecomments.
Fluidity• Lowcostofliving+• Excellentairports+• Attractiveclimate+
Density• Talentandconceptgenerators+• Knowledgespilloverpotential+• Lowcost+• Talentgaps–• Legacyincollateralizedinvestments–• Investmentcapitalnotavailableforearlystagecompaniesrequiredabove$1m–
Vibrancy• Significantenthusiasmforentrepreneurship+• SignificantsupportandinvestmentinESOs+• Pocketsofactivity:StPetedowntown,ChannelsideDistrict,Ybor+• Noclearregionalbrand–
Connectivity• Significantinterestandsupportforentrepreneurship+• CompetitionamongESOs–• Competitionamonggovernmentalgroups–• Lackofunifiedvisionandleadership–• Lackofstrongurbancore–• Lackofactiononregionalpublictransit–• Mediaandmessagingchallenges–• Noclearbrandoroutcomesvision–
Redundancy• Cumbersometonavigatethesystem–• ESOsprovidingduplicativeservicesandcompetingforfunds-• Lackofvisionandcollaborationamongsystemstakeholders-
Diversity• Diversepopulation+• Uniquemixofyoungandexperiences;andmoneyandenergy+• Mixofsmallbusiness,mid-sizedregionals,pocketsofbiotechandthemilitary+• Stronglegacyinrealestatedominates–
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 18
SystemOutcomes.ThelackofaclearvisionorcommonthemeorgoalfortheTampaBayecosystemwasanother
keythemeofthefindings.Manykeyestablishedinfluencerswhowereinterviewedstatedthat
“therewasnoclearvisionofthedirectionofwhereTampaBaywasgoing”intermsof
comparativeregionaladvantage.Accordingtotherespondents,thelackofaclearlegacy
industrythatcouldprovideguidanceforthesystemwasanotherkeyfinding.WhileTampa
Bay’seconomyhasclearlyhasbeendependentuponrealestate,studyparticipantsstrongly
indicatedthattheybelievethisisnotalegacyindustrythatshouldbebenchmarkedfor
ecosystemadvancement.ManyrespondentssuggestedlookingatpeercitiessuchasNashville
andCharlotte.However,itwasnotedthatgeographicallythesecitiesareverydifferentthan
TampaBayandthatTampaBayneedsathemeordirectionforitsentrepreneurialecosystem.
TheonecitythatwasmentionedasverysimilartoTampaBaywasSanDiego(watercity,good
climate,strongmilitarypresence).However,itwasnotedthatSanDiegohasalsobenefited
fromspilloverfromSiliconValleyandTampalacksthiskindofproximitytoamajorhubof
entrepreneurship.
EcosystemRecommendationsandNextSteps
EntrepreneurialEcosystemsarecreatedbyandforentrepreneurs.Yettheentrepreneurswho
wereinterviewedforthisprojectfeltthemostpowerless.Insuccessfulecosystems,the
stakeholders(nottheagents)helptocreateaplacewhereentrepreneurscanthriveandfocus
onthechallengesofrunningacompany.Thefindingsofthisresearchsetforthabaselineof
informationandamodelforthedevelopmentofTampaBayentrepreneurialecosystem.As
notedearlier,thisresearchcanbeusedasthestartingpointforcreatingadatarepositorythat
canbeused,likewearabletechnology,toconsistentlymeasurethehealthofthesystem.
Empoweredwithvision,metricsandentrepreneurialmindset,theresultingecosystemwillbe
uniquelysuitedtosupportentrepreneurshipinTampaBay.
Toreachthatend,thefollowingrecommendationsareoffered:
Addressthevisionandlackofcollaboration:
• BrandTampaBay’sentrepreneurialecosystem–createamantrathateveryonecan
relateto…e.g.whyisthisimportanttome?
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 19
• Createasenseofplacethroughcollaborativediscussion…thinkTownHalltypemeetings
tobuildawarenessandsupportforwhywecareaboutourentrepreneurialecosystem.
• Identifyacommonprojectwithwidespreadappealtobringpartiestogetherandinvolve
keyecosystemplayersinthediscussion.Moreover,wemustensurethatthosewho
havethepowerandresourcestotakeactionareatthetable—thinkofacompetition
and/oracrowdfundingsitethatisopentothecommunitytosupportentrepreneurs
collectively.
• Identifyanorganizationalsteward(individualorpartnership)toprovideleadershipfor
collaborativediscussionanddecisionmaking.
• Developmetricsandmapthesystemanddevelopanactionplantofillgapsandreduce
redundancy.
• Developasuiteoftechnologytoolstoenhanceconnectivity.
Continuetobuildentrepreneurialmindset:
• Collaborationamongthekeyeducationalinstitutionstomapoutandcommunicate
educationalopportunitiesforentrepreneurs,investorsandotherstakeholdersatall
stagesofstartupandgrowth
• Encourageentrepreneurialimmigration–createaprogramtoattractentrepreneurial
talenttotheregion…thinkbroadlyaboutresourceacquisition.Anationalcampaignthat
bringstalenttoTampaBaybyofferingfreeorlowcostresources-funding,revenue
generationopportunities,talent,spaceand/oreducationalopportunities.
Consistentwiththefindings,ameetingwillbeheldintheJohnPLowthEntrepreneurship
Centerearlyin2017tobringtogetherinterestedpartiestobeginthediscussionsonvisionand
collaboration.Inaddition,adatarepositoryisbeingdevelopedthatwillprovidethesefindings
aswellasupdatedmetricsandadashboardfortheTampaBayentrepreneurialecosystem.
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 20
Conclusion
TampaBaypresentsauniqueopportunitytoexamineanemergingandnascentecosystem.
Mostresearchtodatehasexaminedmoredevelopedecosystemswithagoalofunderstanding
howtoreplicatethatsysteminothercitiesandgeographicareas.Bystudyinganecosystemas
itisemerging,thereisanopportunitytoimpact,accelerateandimprovethesystemwhilealso
pavingapathforothercitiestoemulate.
Asnotedbefore,oneofthekeyfindingswasthatforeachecosystemassetidentified,there
werechallengesorbottlenecksthatneededtobeaddressedsothatsystemefficacyand
optimizationcouldberealized.Byfocusingononlyoneortheother,thefullcomplexityofthe
systemismissed.
Twoanalogiesareappropriatetoconclude.First,entrepreneurialecosystemsarelikesocial
movementsinthattheyaregrassrootsinfluencedandledandtheythriveoncollaborationand
knowledgesharingandspillover.Thecomplexityandlikenesstoasocialmovement,makeit
difficult,ifnotimpossible,foranecosystemtobefosteredviapublicpolicyormoneyor
incubatororanyoftheotherecosystemstakeholdersalone.So,whatmakesagoodsocial
movement?Avision,lotsofconveningthatkeepthepopulaceengagedandinvolved,anda
strongmantraorbrand(e.g.“the99%”).Inthisresearch,whenaskedtousethreeadjectivesto
describetheTampaBayecosystem,theauthorsheardthatTampaBay’secosystemis
emerging,young,illdefined,ambitious,andgrowing–anopportunitythathasnotyetbeen
realized.Thisisincrediblyexcitingforanyonewhothinkslikeanentrepreneur.However,social
movementsfailwithoutacatalyzingmomentwhenthevisionandreasonforthemovement
becomecrystalcleartothegroup.
Interestingly,manycatalyzingmomentsareconstructed.Byilluminatingtheprogressand
tellingtheTampaBaystory,thisresearchcreatessuchasopportunity.Tobetterunderstand,it
isimportanttoexplaintheetymologyofthewordopportunity.Thewordopportunitystems
fromLatinorigin:ob(toward)andportus(port).Theoriginalterm:Op-port-tu:referredtothe
TheTampaBayEntrepreneurialEcosystem–Draft11/29/2016 21
time,beforeportsweredredged,whenthecaptainandcrewhadtowaitforthetidetoriseto
gointotheports.Sailorsusedthephraseobportustodenotethebestcombinationofwind,
current,andtidetosailtoport.However,theonlywaytoseizesuchweatherconditionswasif
thevessel’scaptainhadalreadysightedtheportofdestination.Knowingtheweather
conditionswithoutknowingthedestinationwasuseless.Therefore,ashipwasinastateof
opportunitaswhenitscaptainhaddecidedwheretogoandknewhowtogetthere.
Theanalogyisespeciallyvaluableforthisstudy.TampaBayisbuiltaroundwaterandthe
findingsofthisresearchdemonstratethattheregionisveryclosetoastateofopportunitas.
Entrepreneurialecosystems,likesocialmovements,arecreatedbyandfortheparticipants.
Clarifyingthevisionandcollaborating(orrowing)inthesamedirection,willtaketheshipto
port.Thetideishigh,thetimeisnow.
ihttp://www.forbes.com/best-states-for-business/#2e4b20fc18cciihttp://www.kauffman.org/microsites/kauffman-index/rankings/stateiiihttp://www.forbes.com/sites/amyguttman/2016/11/08/why-bill-gates-and-jeff-vinik-are-investing-billions-to-build-an-ecosystem-in-tampa/#209f66c16dd8iviv https://www.google.com/?gws_rd=ssl#q=ecosystem August 4, 2014. vTerjesen,S.,Hechavarría,D.,White,R.,Acs,Z.J.,&Audretsch,D.A.2017..(forthcoming).EntrepreneurialEcosystems:AReviewandResearchAgenda,SmallBusinessEconomics.vi Spigel,B.(2015).Therelationalorganizationofentrepreneurialecosystems.EntrepreneurshipTheoryandPractice.. viiAcs,Z.J.,Autio,E.&Szerb,L.(2014)NationalSystemsofEntrepreneurship:MeasurementIssuesandPolicy
Implications.ResearchPolicy43(3):476–449.viii Stangler,D.,&Bell-Masterson,J.(2015).MeasuringanentrepreneurialecosysteM.KauffmanFoundationResearchSeriesonCity,MetroandRegionalEntrepreneurship.EwingMarionKauffmanFoundation.http://www.kauffman.org/~/media/kauffman_org/research%20reports%20and%20covers/2015/03/measuring_an_entrepreneurial_ecosystem.pdf.