The Cracks and Catalysts in America’s Entrepreneurship Infrastructure
- Sherrod Davis
- Posted on
- Blog
Sherrod Davis,
CEO, EcoMap Technologies
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We don’t have a national shortage of energy or ideas. What we have is a shortage of systems that help those ideas move forward.
This commentary answers the following questions:
- What structural gaps are limiting the effectiveness of entrepreneurship support in the U.S.?
- Where are early signs of innovation or progress emerging within entrepreneurial ecosystems?
- How are different regions addressing the disconnect between existing programs and actual coordination?
Every week, I read through a mix of articles, data briefs, and reports related to entrepreneurship and economic development. Some stand alone, but others feel connected in ways worth noting.
Recently, six pieces caught my attention. Each focused on a different issue like succession planning, nonprofit funding, retraining, capital deployment, youth entrepreneurship, and geographic investment. But together, they outlined a pattern that many of us who work in ecosystems see every day.
The support structures around entrepreneurship are under strain. But we’re also seeing early signals of new models emerging.
Here’s a look at what each article says, and why I think the connections matter.
1. Millions of businesses are aging out without a plan
In The Conversation, Clinical Associate Professor of Innovation and Entrepreneurship, University of Rhode Island, Nancy Forster-Holt, writes that nearly 2.3 million small business owners in the U.S. are over 55, many of whom are nearing retirement with no clear succession plan. This is especially true in rural communities and communities of color. When these businesses shut down, the ripple effects are felt in local jobs, wealth circulation, and economic stability. What’s missing isn’t motivation, it’s infrastructure. We haven’t built systems to help transfer ownership, retain institutional knowledge, or keep value rooted in community.
2. Nonprofits are asked to do more with less
A recent piece from the Minneapolis Fed outlines how nonprofits, especially those focused on housing, workforce, and economic development, are seeing funding drop while demand for services climbs. Many of these organizations operate as the connective tissue in local ecosystems. They support entrepreneurs directly or help create the conditions where entrepreneurship can take root. When they’re forced to reduce services or cut staff, the broader system loses critical capacity. It’s not just a funding problem. It’s a structural one.
3. The retraining gap is real, and it’s growing
McKinsey’s latest research reinforces what workforce leaders already know. AI and automation are shifting the job landscape quickly, but retraining efforts aren’t keeping up. Millions of people will need new skills and better pathways to access them. In many places, those pathways haven’t been built. Without local infrastructure to guide that transition, the future of work conversation stays academic.
4. Public capital isn’t reaching the people who need it
The Albuquerque Journal covers commentary from Angelica Maestas, the director of strategic partnerships at Builders VC, around the underutilization of SSBCI funds. These federal dollars were meant to fill capital gaps, but many states and local governments aren’t positioned to move them efficiently. The issue isn’t a lack of interest. It’s a lack of systems. Without operational infrastructure, money gets stuck, timelines lag, and entrepreneurs are left waiting.
5. Young people are creating new entrepreneurial norms
The World Economic Forum highlights how youth entrepreneurship is driving resilience in communities from Nairobi to New Orleans. These founders aren’t just building companies. They’re building alternatives to traditional employment and legacy structures. They’re choosing values-based models, leaning into local challenges, and creating their own ecosystems—often without institutional support.
6. Investors are turning to overlooked regions
In Time, Walter Carter and Ratmir Timashev write about the American Heartland and why it’s an investment opportunity, not just a charitable cause. These regions are full of talent and ideas. What they lack is coordination. There’s a need for systems that help surface opportunities, connect stakeholders, and support early momentum. Otherwise, capital arrives without context and leaves without outcomes.
What ties these together?
Each article points to a different surface-level issue. But underneath, they all trace back to the same problem: missing infrastructure. We don’t have a national shortage of energy or ideas. What we have is a shortage of systems that help those ideas move forward. That shows up when programs operate in isolation, when data isn’t shared, when referrals aren’t tracked, or when capital isn’t coordinated. The result is friction. Entrepreneurs fall through the cracks, resources sit idle, and good work stays local when it could be scaled.
At EcoMap, we work with states, cities, universities, and entrepreneur support organizations to help fix this. Not with another directory or dashboard, but with tools that map what’s happening across the ecosystem and show where support is working, where it’s missing, and where it could go next.
Because until we take ecosystem infrastructure seriously, we’ll keep rebuilding the same programs without addressing why they’re not sticking.
Want to explore how your ecosystem could build toward this future?
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