Holistic Hustle: Tackling Complex Systems in Entrepreneurship and Security

In this post, we will introduce some upcoming Storm King collaborations. These projects, which are the result of collective efforts, share common themes and ideas, highlighting the importance of collaboration in addressing complex challenges.

In our interconnected world, understanding complex systems has become crucial for addressing challenges across various domains. Recent research in entrepreneurship, financial risk management, and maritime security highlights the importance of holistic, adaptive approaches. More importantly, it underscores the need for systemic thinking and integrated approaches in tackling intricate problems. Let's explore how these approaches can be applied to these fields.

First, Dan Evans, as part of his ongoing academic research, has been sharing ideas with Mathew Sedze, a doctoral candidate who is also exploring entrepreneurial ecosystems. In a recent LinkedIn post, Mathew elaborates on the fact that entrepreneurial ecosystems are now being recognized as complex adaptive systems where interactions between actors and the broader economic environment lead to emergent behaviors. As discussed in recent work on entrepreneurial ecosystems, this perspective challenges the notion that such ecosystems can be intentionally created. Instead, it suggests that policymakers should focus on shaping economic systems to support productive entrepreneurship through approaches like "nudging" with safe-to-fail experiments.

This systems thinking approach aligns closely with recent developments in understanding global security challenges. Storm King is currently collaborating with Dr. Ike Wilson of Wilson Strategic Enterprises (WiSE), and Yiannis Koutelidakis, a noted expert in credit risk and scenario generation for both macroeconomic and climate change stress tests, for a project that bridges the concepts of Compound Security and traditional financial risk management. It explores how threats in geopolitical contexts can converge, multiply, and amplify each other, much like the interactions within entrepreneurial ecosystems. Our approach introduces the idea of mapping Threat Calculation metrics onto arithmetic and geometric means, linking these to the lognormal distribution—a concept familiar in both financial markets and complex systems.

The parallels between financial risk management and geopolitical risk become even more apparent when we consider the concept of "Compound Maritime (in)Security," another collaboration between Storm King and WiSE. This approach proposes a comprehensive "3D+C" (Defense, Diplomacy, Development, and Commercial) strategy to address security challenges in critical maritime chokepoints. Like the entrepreneurial ecosystem model, it views maritime security as an interconnected web of economic, political, environmental, and social factors.

All three areas of study emphasize the limitations of traditional, linear approaches to complex problems. Whether it's fostering entrepreneurship, managing financial risks, or ensuring maritime security, there's a growing recognition that we need to account for these systems' adaptive, emergent nature.

The common thread running through these fields is the need for holistic, multilateral approaches that address not only immediate threats or challenges but also underlying socioeconomic factors. In entrepreneurship, this means focusing on the broader economic system rather than trying to create ecosystems artificially. In financial risk management, it involves understanding how risks can compound and interact in non-linear ways. Geostrategy (including but not limited to maritime security) calls for polycentric analytical approaches, integrating multiple stakeholders, and considering a wide range of factors beyond traditional security measures.

Morrisson-Polycentric Environmental Governance

As we continue to grapple with complex global challenges, these integrated approaches offer valuable insights. They remind us that in our interconnected world, solutions often lie not in addressing isolated problems but in understanding and influencing the broader systems in which these problems exist. In fact, our research finds that attempts to address issues in isolated ways more often exacerbate the contagion of those problems rather than mitigate them. Whether we're looking to foster innovation, manage risks, or ensure global security, embracing complexity and systemic thinking will be vital to navigating the challenges of the 21st century.

By adopting these more comprehensive approaches, we can better prepare to address the multifaceted issues that define our modern world. It's an exciting time for researchers and practitioners alike as we continue to uncover the intricate connections between seemingly unrelated fields and develop more effective strategies for managing complex systems.

Expect to see more on these collaborative efforts in the future with a likely separate Substack that focuses more specifically on our Geostrategy efforts.