"Entrepreneurship is a mindset,” says Chiara Spina, Assistant Professor of Entrepreneurship and Family Enterprise at INSEAD. “It can really transform small businesses, family-run companies, large corporations and even governments.”

Spina knows a thing or two about nurturing start-ups, having worked with hundreds of founders, incubators, accelerators and governments in Asia, Europe and the Middle East. 

As she explains in this episode of INSEAD Explains Entrepreneurship, entrepreneurship is no business model; it is a mindset that can transform organisations of all sizes through rapid experimentation rather than slow, bureaucratic processes.

The three phases of thriving entrepreneurial ecosystems 

According to Spina, successful entrepreneurial ecosystems evolve in three distinct phases. They begin with individual experimentation, where budding entrepreneurs test ideas independently. This is followed by structured collaborative learning, with entrepreneurs, investors and mentors sharing insights through accelerators and incubators. The final phase is institutional adoption, during which entrepreneurial methods become integrated into established organisations and governmental structures.

Singapore exemplifies this evolution, says Spina. The city-state transformed from a regulated environment to one where government agencies actively support venture building and run innovation labs. 

Different strokes for different folks

Spina stresses that countries must leverage their unique characteristics and turn constraints into competitive strengths. For example, Indonesia, with its multitude of islands, has become a playground for logistics and fintech solutions by homegrown firm Gojek.

The professor identifies different strategic approaches based on market size and context, using the UAE, Saudi Arabia and Pakistan as examples. For emerging ecosystems facing capital constraints, she suggests alternative financing models beyond traditional venture capital. They include revenue-based financing, government-backed loans, peer-to-peer lending and family business partnerships.

The key is to be intentional about development strategies, says Spina.

“Countries that succeed are the ones that are intentional about whether they're building for global reach, domestic scale or regional leadership – and then they design and support systems accordingly.”