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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


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


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,


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


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.


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


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


populationstartedabusinessasopposedto.30%in2015;constitutingajumpthatoutpaced

thepopulationsofSanDiegoandKansasCity.

ThedemographicspointtoaTampaBayapproachingthehighestperformingareasinthe

countryintermsofstartupactivity,butjustnowcomingintoitsownintermsoffirmgrowth.

Thecommunityhasrespondedtotheshiftawayfromthelegacyindustriesofrealestateand

tourismwithpolicyleadersspeakingoutinsupportofentrepreneurialefforts,universities

investingintheirentrepreneurshipprogramsforstudentsofallbackgrounds,andthecreation

ofahostofsupportorganizations.Theresearchteamfound64entrepreneurialsupport

organizations,providingcoaching,networking,co-workingspace,orresourcesthroughthe

universitysystem.


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


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,


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:


"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


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


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


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.


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


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–


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?


• 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.


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


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.

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