This article answers the questions:
- Why is it important to consider local culture in ecosystem-building efforts?
- What challenges do entrepreneurs face, and how can local culture help address them
- How can ecosystem-building efforts effectively incorporate local culture?
Immersing in Local Culture for Ecosystem Success
Entrepreneurs have this formidable, forward-thinking mindset for innovation. They are wired to look at a complex problem, dissect it and develop creative solutions. This kind of thinking has led to transformational developments and has positively affected communities across the globe. But sometimes, listening, honoring and building on what already exists in local communities can create change that is just as powerful.
Small business owners in a tight-knit community don’t need outside experts coming in with blanket solutions—they need experts who take the time to understand their world and offer solutions that make sense for them.
Entrepreneurs in underserved communities face the same barriers to success as others, plus unique challenges such as a lack of time, resources, and social safety nets. Because of that, these founders tend to be more flexible because they have been forced to be creative and innovative in how they build. They also bring diverse skills and perspective.
Take military veterans, for example.
Katie Kilby, Founder of Reveille Grounds, a nonprofit connecting people, programs, resources, and opportunities with emphasis on the military and veteran community, highlighted the value veterans bring to entrepreneurship because their training equips them with resilience, leadership, and a solution-oriented approach to overcoming challenges, making them highly effective in both business and social enterprise settings.
“We’re talking about an entire demographic of people who are trained to see a problem and act on it with a solution,” Kilby said.
External development initiatives often fail to take into account these perspectives, the local culture and existing industries. Initiatives are more likely to succeed, however, when they integrate and build upon existing local structures.
“Modern economic development does not acknowledge history, doesn’t acknowledge culture, doesn’t acknowledge language,” Casey Long, Research and Evaluation Manager at Roanhorse Consulting, said.
According to Long, this oversight can create a disconnect between development efforts and the actual needs and traditions of local populations. For indigenous communities like Long’s own Diné community, economic development strategies that do not consider these fundamental elements are less likely to succeed because they fail to align with the values, practices, and worldview of the people they aim to support. For instance, economic initiatives that push for rapid, external-driven growth might disregard traditional ways of life that emphasize relationships, community, and sustainability.
Successful ecosystem-building happens when entrepreneurs are deeply connected to the people they serve, reflecting an understanding that cannot be imposed from the outside.
The panelists cited a study conducted by Endeavor, a global organization that supports high-impact entrepreneurs, that compared the ecosystems of Bangalore and Nairobi. The study looked at the differences between the two cities’ ecosystems and how they shaped entrepreneurial success.
While both ecosystems had their strengths, Bangalore’s success was largely attributed to its dense networks and local foundation, which allowed entrepreneurs to leverage existing resources for growth. In contrast, Nairobi’s ecosystem faced challenges due to fragmentation and a reliance on external support.
When ecosystem-building efforts focus on local strengths, existing industries, and deepening connections within communities, rather than imposing external models or relying solely on outside actors, more effective change and growth can be made.
“Ecosystem building can’t be something that you just lay on to an existing infrastructure,” Abby Davidson, Director of Research & Impact for the Aspen Network of Development Entrepreneurs (ANDE), said.
Local culture immersion is the way to create solutions that work for underserved communities and will be most effective in the long term. Panelists encourage action, such as:
- Hiring locals, especially entrepreneurs familiar with their community’s networks and needs, to ensure culturally aligned support.
- Spending time with entrepreneurs to understand their visions and ensuring close community engagement.
- Focusing on human-centered design by keeping the people at the center of problem-solving.
- Using research, evaluation, and motivational interviewing techniques to better understand community dynamics and ensure entrepreneurs feel cared for throughout the process.
However, it’s important to note these approaches need to be genuine or entrepreneurs will feel it.
“Authenticity is critical in Baltimore,” said Jay Nwachu, who supports social entrepreneurs working to reduce the racial wealth gap in Baltimore City as CEO of Innovation Works. “While it is welcoming, people know when to cut you off if you’re not being authentic to yourself.”