Five Key Factors to Foster Entrepreneurship in Ecuador

Entrepreneurship is vital not just for economic growth and prosperity, but also for social harmony. It creates jobs and gives peoples’ lives more purpose and meaning. The solutions for many of society’s most intractable problems come not from governments or established companies, but from new companies that unleash the creativity and energy of the human race.

Today, we need entrepreneurship more than ever to help mitigate problems related to climate, energy, healthcare, education, and unemployment. Innovation-driven entrepreneurship should be a top priority that will help Ecuador on all fronts.

As Ecuador seeks to build a vibrant entrepreneurial ecosystem, it is critical to keep the following factors in mind.

1. Keep the Main Thing the Main Thing: The single necessary and sufficient condition for an entrepreneurial ecosystem is entrepreneurs. That is the goal. Success means more, higher quality, and connected entrepreneurs. By high quality, I mean entrepreneurs who have built or are building scalable ventures that sell products beyond the local market. They create exports. Keep the focus on this goal and put entrepreneurs at the center of all efforts. 
2. Create Your Own Model: A common mistake is trying to replicate Silicon Valley in other places. There is only one Silicon Valley and it is customized to the specific assets of that region. Other areas have different assets and should not try to compete, but rather to create their own unique ecosystem. Vibrant entrepreneurship hubs have been created in London (FinTech), Boulder, Colorado (lifestyle), and Pittsburgh (food). Ecuador should understand and leverage its special assets to create something new.
3. Global Perspective: Scalable new companies must have an international capability, so they must be aware of international markets. Ecuador is not a big enough market to create large businesses on its own. Understanding these markets and making connections to enter it is essential.  
4. Entrepreneurship Education and Training: Entrepreneurship is a craft that can be taught. Ecuadorian universities and schools are starting to invest and build their capabilities to provide this curriculum. This education should be complemented with external training and experience. Awareness of current best practices worldwide is not a “nice to have,” but rather is an essential tool to scale the new businesses. Fernando Moncayo Castillo was a successful businessman in Ecuador, but it was the training he received at MIT that enabled him to reach the next level to scale Inspectorio into a global power. 
5. Think Long Term: Ecosystems are systems, which means that they are complicated with many different first-order and second-order effects. Any action that is taken will almost certainly have time delays between the time they are implemented and when positive results are realized. It is crucial that a long-term perspective is taken in implementing a systematic solution for it to be sustainable. Impatient entrepreneurial ecosystem builders who think linearly and only appreciate quick wins might feel good in the short term, but find they are not building long-term sustainable benefits. They may even be making the situation worse than before.

Having been an entrepreneur, taught entrepreneurship, and worked with leaders globally to foster entrepreneurship, I’ve seen first-hand the importance of these steps. They are all critical factors in building an innovative-driven entrepreneurial ecosystem in Ecuador.

Bill Aulet is the managing director of the Martin Trust Center for MIT Entrepreneurship at MIT and a professor of practice at the MIT Sloan School of Management. He is the author of Disciplined Entrepreneurship: 24 Steps to a Successful Startup and the Disciplined Entrepreneurship Workbook.