A diverse set of interdependent actors within a geographic region that influence the formation and eventual trajectory of the entire group of actors, and potentially the economy as a whole. Entrepreneurial ecosystems evolve through a set of interdependent components which interact to generate new venture creation over time. Within an ecosystem, start-ups, established businesses, research institutions and others can interact and mutually benefit from each other's ideas, knowledge and connections. Formal accumulation of knowledge and the conceptualization of previous experiences contributes to improving the virtuous cycle.
Example of Entrepreneurial Ecosystem:
The ecological model has inspired business structures, especially in the entrepreneurial ecosystem model where all of the business’ entities work together for the best balance, mimicking the earth systems.