Entrepreneur
Key Takeaways
- To build a lasting regional innovation economy, communities must strategically invest in local talent, funding and policy incentives that encourage startups — and their leaders — to stay and scale locally.
Every founder celebrates launch day — that moment your idea becomes real. But far fewer plan for what happens next.
The truth is, the hardest part of building a company isn’t getting started. It’s staying — staying funded, staying competitive, staying in an environment that supports growth.
We talk a lot about “startup ecosystems,” but there’s a persistent myth that if a city funds a few startups, hosts demo days and attracts some investors, the rest will take care of itself. Capital will arrive. Leaders will follow. Companies will grow — and stay.
In reality, it rarely works that way.
Startups are mobile. If the local conditions aren’t right — if there’s no capital, leadership or infrastructure — they move. And they should.
For founders, that mobility is both a risk and an opportunity. Because if your environment can’t support your growth, the smartest thing you can do is find one that can.
Related: Rapid Business Expansion Can Be a Good Thing — But It Comes With Challenges. Here’s How to Make This Growth Sustainable.
Startups leave for the same reasons talent leaves
It’s a familiar story. A promising company launches in a smaller city — maybe Albuquerque or Lincoln. The community rallies, the local paper runs a feature, and there’s real momentum. Then, a few years later, the company moves.
They follow capital. They follow talent. They follow the next stage of growth.
It’s the same pattern you see with ambitious graduates — if opportunities aren’t available locally, they go where they are.
That’s not a sign of failure. It’s a signal. And as a founder, you should listen to it.
When I’ve worked with New Mexico-based startups, almost every one faced the same challenge: senior leadership talent. In many cases, the experienced executives who helped guide the company never actually relocated. Eventually, the company moved to them.
For founders, that decision can feel emotional — but it’s really strategic. Staying in the wrong ecosystem can slow your company’s adulthood.
Retention is about strategy, not sentiment
Founders often feel pressure to “represent” their region — to stay local out of pride or loyalty. But retention, for both companies and talent, is about strategy.
Ask yourself: What does my company need for its next stage of growth, and does my environment provide it?
Every thriving business ecosystem rests on three ingredients: ideas, people and capital. If your current city gives you two, you can attract the third. But if you’re missing two, it’s time to make a move.
Capital is obvious — early-stage funding may get you started, but growth capital is what gets you to scale.
People are the key. Compelling companies can recruit anywhere, but convincing top leaders to relocate takes more than salary. That’s where creative incentives — tax breaks, founder networks, equity reinvestment programs — come into play.
Even if you’re not designing policy, you can advocate for or participate in these tools. As your company matures, think of yourself as part of the growth infrastructure of your city.
Because while money launches startups, people build ecosystems.
Creative tools work — when they’re part of a bigger plan
There’s no single playbook for keeping startups or talent in a region. But creative approaches can make a difference — if they’re tied to strategy.
In New Mexico, the Taos Ski Lift Pitch connects founders and investors on a chairlift in the mountains. It’s quirky, and it works. Not because of the novelty, but because it builds real relationships.
If you’re a founder, look for (or create) those types of touchpoints. Reach out to investors and leaders outside your bubble. Build an alumni network of executives who have left your region — they might invest, mentor, or even come back when the right opportunity arises.
No single event or campaign will transform your trajectory. But a consistent pattern of visibility, creativity and connection absolutely can.
Create anchors that build momentum
Momentum is magnetic — and every company that stays and scales adds gravity to the local ecosystem.
When one startup succeeds, it attracts talent. It inspires spin-offs. Schools and investors begin to align with what’s working.
Even if you’re just one company, you can be that anchor. Every new hire, every reinvestment, every partnership you create helps build the infrastructure others can plug into later.
Consider New Mexico’s growing space sector. Companies aren’t just moving there for tax breaks — they’re moving because they see momentum. The ecosystem isn’t perfect, but it’s growing because founders stayed long enough to build something others wanted to join.
Related: Crush Your Growth Goals — Make These 5 Bold Moves to Scale and Keep Your Vision Intact
Play the long game
Scaling a company is a long game — and so is building a sustainable innovation community.
As a founder, you can’t control every factor in your environment. But you can control where you grow, how you invest, and whether you help build something that lasts.
Because the real success of a startup isn’t just getting funded or hitting an exit. It’s reaching the stage where your company — and your city — can both thrive because you chose to build for the long term.
Startup adulthood doesn’t happen by accident. It happens by design.
Key Takeaways
- To build a lasting regional innovation economy, communities must strategically invest in local talent, funding and policy incentives that encourage startups — and their leaders — to stay and scale locally.
Every founder celebrates launch day — that moment your idea becomes real. But far fewer plan for what happens next.
The truth is, the hardest part of building a company isn’t getting started. It’s staying — staying funded, staying competitive, staying in an environment that supports growth.
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