Thursday, May 29, 2014

Black Swan Start-Ups and Where They Flock To

In the Five Cs of Locating a Start-Up, Dr. Sami Mahroum, Founding Director of INSEAD’s Innovation and Policy Initiative, talks about why you should start your Internet company in California and how “Black swan” start-ups have cut paths beyond the hi-tech heartlands.

If you are wondering what the Five Cs are:
  1. Cost - factors such as rents, living costs, wages
  2. Convenience – including the entrepreneurs’ familiarity with a place, government policies, regulatory and legal environment, proximity to key markets and technological readiness
  3. Community – networks and social capital
  4. Calibre  - the quality of the workforce and infrastructure, such as roads, airports and ICT
  5. Creativity – the resourcefulness and ingenuity of the local community.
"Essentially, it is up to entrepreneurs to match the opportunities and challenges of a location with their products’ capabilities and needs.  Entrepreneurs are more likely to succeed if they are able to develop strategies and business plans that leverage local advantages and make up for deficiencies by tapping into surpluses in other locations," says Dr. Mahroum.

Read the entire article:  The Five Cs of Locating a Start-Up

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