Frames of reference for a startup community

By Jamie McHale · Community DWS

What ingredients go in to making a successful startup community? Here in Scotland we need to change our frames of reference when thinking about the way we nurture early stage startups.

RookieOven is at the Dublin Web Summit 2012, speaking to individuals and startups from around the world about their own vision, community and support.

photo credit: WeeJames

I asked Josh Elman of Greylock on what we can do to build a bigger and better startup community here in Scotland. Josh believes that startups can be built anywhere in the world. The difference between Silicon Valley, the other successful startups hubs, and other cities is that people aren’t focused exclusively on revenue. Instead, they are thinking about how to change the world. The question that people have to ask themselves is:

“Can I see a world where 100m people use my product?”

Josh explained that the key to reaching that goal is building and iterating towards your goal. Is your activity growing your user numbers towards that vision? If not, why not?

So what can we do in Scotland to nurture to community around startups and install in entrepreneurs the confidence that they can build a high growth company?

Is it the frames of reference we use?

Firstly, a more traditional view of product development takes the steps to success in sequence: planning, developing, building, marketing and selling. With tech startups that process is repeated in often very short bursts. Asking when you are finished with the ‘build’ stage is nonsense, as the product will always be under active development!

Secondly, comparing early stage startups in our community to the outstanding successes of others is often not helpful. We have an outsiders perspective, and so may be at risk of drawing the wrong conclusions if we don’t understand the context of their community and network. We should be looking at Scottish success stories and tapping into their networks.

Thirdly, we should be inspired by the success of others. Wherever they are in the world, startups are built by people, no different to anyone else anywhere. The successful startup hubs use proximity and serendipity to leverage the power, skills and vision of people in the community. We should take confidence that here in Scotland we have the foundations of success, we just need to build on them.

http://twitter.com/ijonas Ijonas Kisselbach

One of the problems with any startup and venture capitalist community and tech media scene is the the focus on “100m users/eyeballs/consumers” and the desire to change the world.

Try building a sustainable business that lasts, employs people, pays off mortgages and helps collectively drive an economy forward.

Building a community around sustainable businesses helps attract talent allowing further startups to develop.

Remember, Silicon Valley has been around since the 1970s

http://www.jamiemchale.co.uk Jamie McHale

Thanks for your comment Ijonas.

I think the debate around what counts as a startup is interesting. A small business is dependent on a local community, and is therefore constrained in growth potential. A startup does not have this dependence, and has the potential for a wider market.

I guess some parts of the world to change aren’t glamorous – perhaps it’s simply providing an easier or better version of a current tool.

I agree – sustainable businesses are important, as they are the ultimate objectives for many (although, not all) – and can provide a great source for recycling investment and talent into a community.

http://www.ijonas.com ijonas

Not sure I understand your comment about a small business being dependent on a local community and is therefore constrained.

If a small Scottish business has a large, say US-based market then how is it locally dependent or constrained?

http://www.jamiemchale.co.uk Jamie McHale

If that business has a large market in the US (as well as the UK?) then presumably they are not constrained – they have a growth potential and can ‘change the world’ – a startup business can be sustainable AND focus on changing the world.

http://twitter.com/marcode Marco De Nichilo

traditional sustainable business is rarely scalable imo.

A startup is about proving scalable growth and a need, where a global business can be built on that need.

entirely different things. we already have run of the mill businesses in Scotland and it clearly isn’t helping.

in fact the whole.. “stop focussing on changing the world” comment is actually part of our problem.

maybe in 4 decades we’ll catch up :/

http://www.ijonas.com ijonas

Building a sustainable business is hardly traditional. Its the hard part. Doesn’t mean its boring, doesn’t mean it lacks aspiration. Doesn’t mean you can’t exit for £40-100million pounds in 5yrs time.

Silicon Valley didn’t end up with 250,000 tech jobs overnight. It developed track record.

http://twitter.com/marcode Marco De Nichilo

agreed, but they didnt end up with 250,000 tech jobs by focussing on traditional businesses either.

http://www.jamiemchale.co.uk Jamie McHale

Here is an interesting article from A Smart Bear blog on sustainability:

http://blog.asmartbear.com/unsustainable-companies.html

Pingback: Blogging from the Dublin Web Summit – Entrepreneurial-Spark Blog