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Hamburg’s Entrepreneurial Ecosystem And The Next Media Initiative

Public Policy Towards Entrepreneurship

Written by Moritz Philip Recke

Paper category

Master Thesis

Subject

Business Administration>Entrepreneurship

Year

2016

Abstract

Master Thesis: Entrepreneurship Ecosystem The Entrepreneurship Ecosystem (often called the Entrepreneurship Ecosystem) approach is the most recent way to describe the relationship between entrepreneurial communities and regional parameters. One of the earliest researchers in this field is Isenberg (2010), who stipulated that specific measures to promote the local entrepreneurial economy must be combined with regional characteristics to be successful. This approach focuses on high-growth companies, which means start-ups with potential for innovation, economic growth and job creation (Mason & Brown 2014, World Economic Forum 2013), and therefore excludes any and all other types of entrepreneurship, such as self-employed or conventional Small business form of business. The main concept behind this approach draws on entrepreneurial activities associated with different participant communities, and strongly emphasizes the social background that hinders or promotes entrepreneurship (Stam 2015, Ács et al., 2014). Although there is no evidence that the success rate of each startup in a thriving startup ecosystem has increased, a healthy ecosystem can be said to produce more startups, which in turn will generate more successful high growth in the region Enterprise (Compass 2015). Like many other concepts-such as clusters or innovation systems-the entrepreneurial ecosystem approach focuses on the external business environment to describe the ecosystem and its internal relationships and dependencies. The main difference from other theories lies in the emphasis on the entrepreneur itself rather than the enterprise. Entrepreneurs are considered to be the main players in maintaining the vitality and prosperity of the system (Stam 2015). This fact leads the government to play a different role-compared to other policy concepts-as the "supplier" of the ecosystem, leaving the "leader" role to private entrepreneurs (Feld 2012). Entrepreneurship Ecosystem Attributes According to Feld (2012), there are nine core attributes related to the success of the entrepreneurial ecosystem. These attributes focus on the (social) interaction between different stakeholders in the ecosystem and their access to related resources (such as capital, labor, and services), as well as the supportive role of the government (see Table 1). There are other sources that indicate different factors related to the entrepreneurial ecosystem. The World Economic Forum (2013) listed eight pillars of a thriving ecosystem, which also require resources such as labor, capital, and services. All these principles emphasize local parameters and focus on the (social) bottom-up process. 3.1 Hamburg's media industry According to the nextMedia.Hamburg plan, Hamburg has more than 23,000 companies in the media/IT industry and is therefore one of the leading content locations in Europe. The vast majority of Germany's top 25 printed publications are published in Hamburg. There are 150 companies in the region, and it has positioned itself as a game city, providing game services to more than 760 million users worldwide. In addition, approximately 34% of the 96.000 companies in the service industry provide information and communication services, such as advertising or marketing (nextMedia.Hamburg 2016b), which can also be considered as part of the media industry. Hamburg’s creative workforce generates more than 10 billion euros in annual income, with added value of 2.8 billion euros. A diverse portfolio of companies at all levels of the media and digital economy value chain is considered essential to the economically relevant combination of content and technology and to Hamburg's success as a "media city" (nextMedia.Hamburg 2016c). According to the Hamburg Chamber of Commerce (2015b), the city of Hamburg is seizing emerging business opportunities during digital transformation and media convergence. It lists the effective network between politics and industry as an important enabler in this regard, listing nextMedia.Hamburg, a Hamburg media/IT industry initiative created by the Senate of the Free and Hanseatic City of Hamburg, the Hamburg@Work eV Association and Hamburgische Gesellschaft für Wirtschaftsförderung (Hamburg Business Development Company), as well as many other initiatives, associations and public-private partnerships. The top 5 cultural and creative industries in terms of employment in 2013 were software/games, advertising, news, design and architecture (Hamburg Chamber of Commerce 2015b). The most significant job growth occurred in the software/game industry, which has added 4,082 jobs since 2009. Hamburg's traditional advertising industry grew only slightly during this period, while journalism declined moderately, reducing 1,076 jobs (see Table 7). According to data from the Hamburg Chamber of Commerce (2105b), in terms of creative industry employees, Hamburg ranks fourth among the "media cities" in Berlin, Cologne and Munich. However, in terms of revenue, Hamburg only lost its lead over Berlin in 2012, highlighting Hamburg's effective strategic alliance as a “media city” (see Table 8 and Figure 8). Read Less