Building the Ecosystem New Founders Actually Need

The Rapid Growth of Entrepreneurship

Since 2020 the number of self-employed entrepreneurial workers has nearly doubled from 13.6 million, to 27.7 million. The headlines tell the story: Forbes recently answered “Why Women Are Turning To Entrepreneurship As Corporate Paths Stall,” while the Wall Street Journal has declared “Starting Your Own Business Is All the Rage Again,” recognizing the exponential increase in new-business applications this year. 

This shift, in how we work and build, represents an opportunity. Studies show that the innovation from new businesses has historically driven roughly 25.7% of aggregate economic growth. 

Why This Moment Requires A Strong Ecosystem

If we want to build an innovative economy that leaves no talent on the table, we need to invest in what comes before venture capital, and build the ecosystem that most founders actually need.

That means investing in a strong entrepreneurial ecosystem of funders, technical specialists, strategists, and a community who can provide critical support to founders at every stage of business growth.

An ecosystem that defines success not by pressure to scale but building to last, by meeting real needs, passing on legacy, and remaining community rooted.

At Founder Forward we work with founders like Dani Lopez, creator of Lulo, an app helping WIC recipients access benefits, and Daniel Mahoney of Sol Cacao, a bean-to-bar chocolate company preserving the craft and sustainability of chocolate making.

These founders operate outside the traditional means of capital and opportunity, yet they are building community-centered innovations that improve industries and strengthen local economies.

Looking Beyond Traditional Models, Toward a More Effective Ecosystem

At Founder Forward we know there is no lack of ideas or ambition to solve some of society’s most pressing issues. The problem is a failure to invest in the ecosystem that helps entrepreneurs, like Dani and Daniel, turn those ideas into reality.

Too often capital and resources are concentrated in cities and networks that leave founders in non-dominant markets – especially non-traditional founders – without access to early-stage support.

Economic development strategies tend to focus on scaling high-growth startups with policymakers pointing to America’s global leadership in venture capital funding as proof entrepreneurs are well-served. To put it in perspective, America invests more than four times the venture funding of the next closest country.

But venture capital is not designed to support the majority of entrepreneurs. Those in early stages of business development, or those operating outside of traditional high-growth industries fall through the gap. Venture capital will not be the solution to our entrepreneurial boom.

Let’s make sure the next Dani and Daniel, with extraordinary talent, ideas, and solutions, don’t fall through the gap. With collective effort to strengthen the entrepreneurial ecosystem, we will increase transformative innovation, and boost communities.