Entrepreneurs typically have limited resources during the start-up phase of a business. Business ecosystems are a strategy for entrepreneurs to access and exchange many different aspects of value, resources, and benefits. However, there may be business risks for entering a particular type of ecosystem, and further risks may be encountered after entering and participating in a business ecosystem. These risks are significant and can inhibit a startup's growth. In this article, the literature on business ecosystems is reviewed as it relates to risk to discover insights of relevance to entrepreneurs, top management teams, and business-ecosystem operators. First, the published research is organized into two streams: i) risks relating to categories of business ecosystems, and ii) risks relating to participating in business ecosystems. Then, the problem is abstracted to develop a potential strategy for managing these risks, which features a pre-entry inspection followed by realtime resource management. Finally, five recommendations are offered for entrepreneurs seeking to enter and participate in business ecosystems.
Smith, D. (2013). Navigating Risk When Entering and Participating in a Business Ecosystem. Technology Innovation Management Review, 3(5), 25–33. https://doi.org/10.22215/timreview685