Entrepreneurship: An Engine for Economic GrowthConverting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape
USA • UK • INDIA
Progressive IntelligencePartners in Achievement
Power of the millions … that’s entrepreneurs, not $’s!
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Wave of Global ChangeChange in
economic parity between countries
Slowdown in the larger western
economies
Migrating populations of economically
disadvantaged
Shifting demographics of
metro areas
Limited institutional
accountability
Pace and impact of technological
innovation
Powerful and dynamic forces have dramatically transformed the business and social landscape across the globe, bringing new challenges and opportunities to the forefront!
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Increased emphasis by governments, through direct programs and public institutions, volunteer organizations, and private foundations to encourage entrepreneurship.
Intuitive and Obvious Response
While it is not a panacea solution, common sense suggests that entrepreneurship must play a significant part in our
response to these changes globally.
An entire generation of disenfranchised youth awaits
Current economic malaise will stretch well into this decade
Fiscal deficits have straight-jacketed most of the developed world
Job markets have thinned; while eligible job seekers have risen
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Global population
stands at 7B; all are
potential prospects
1.4B still live without
electricity and 780M without
drinking water!
Global Online Retail $0.5T; growing @
15% p.a
World has shrunk; 1B connected with Gangnam Style as though Psy were a
local folk singer!!
Unimaginable opportunities exist!
Android, Samsung & Apple mobile ecosystem $10B;
750M devicesMobile Gaming $7.5B; next 3 yrs
But all is not Doom and Gloom
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It is crucial that we understand entrepreneurship and its influence on economic growth; identify factors that
encourage and/or hinder this activity.
Understanding Entrepreneurship
Entrepreneurship is not a defined science, but neither is it a game of dice that must be left to Lady Luck!
Entrepreneurial success and economic well-being can be made systemic and
less a matter of chance.
Chances of entrepreneurial success (leaving aside celestial interference) are commensurate to the enabling environment that supports it
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Entrepreneurship can be taught; one does not have to be born with a particular DNA strand.
Making Entrepreneurship Accessible
Significant lead time to any planned remediation or organic programmes before they start to have an impact!
Is one born with an entrepreneurial mind set or is it something that one can learn?
In the genetic debate, if Nature is about genes then Nurturing offers effective gene-splicing.
Education, mentoring and coaching, and effectual networking override or strengthen the existing bonds.
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1. Develop an idea under incubation
Seeding the Entrepreneurial Mindset
Connecting the dots …!
2. Mentor through a maturing phase
3. Guide towards sustainable growth
Entrepreneurs require vital support throughout their venture lifecycle!
4. Monetize the developed asset
1.
2.
.3 . 4
Seeding the Entrepreneurial Mindset
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Contribution of EntrepreneursTangible evidence and broad consensus among mature and
emerging economies that entrepreneurs can catalyse economic growth
Entrepreneurship encompasses start-up activity, as well as the running of new and established businesses!
Entrepreneurs contribute by spurring creativity, encouraging innovation, forming new ventures, and instigating productive activity
Entrepreneurs raise collective consciousness on benefits of self-reliance, by enhancing the sense of control on one’s own destiny
Entrepreneurs highlight individual initiative, collaborative ambition, and innate desire to grow what they build
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Please forgive the rhetoric but hopefully, at least some of it is useful in crystallising your views on entrepreneurship!
Risks of Listening to Someone on a SoapboxPrivilege of the Stage: project evangelical fervour as
insightful or a profound revelation
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Entrepreneurship is a promising career choice, offering people a way to place themselves in the
driver’s seat and often, grab a windfall of disproportionately high returns.
We are not talking about the successful few who are making millions but rather
the millions who simply aspire to make a success of it …!
The Sermon
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Let’s Get Serious …!
Entrepreneurs play a crucial role in the development and well-being of societies!
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Global Entrepreneurship Monitor (GEM)
Activity
World’s Largest Study (85 Countries) of Entrepreneurship
Global perspective on entrepreneurship, its key economic drivers, motivating factors, and the required enabling
environment to sustain it!
Growth Aspirations
Attitude
Job creation potential; important policy concern in the aftermath of a 5-
year global recession
Perception of opportunities, own
capabilities, fear of failure, entrepreneurial intentions
and societal beliefs Start-up/new, growing and discontinued
businesses, necessity and opportunity driven efforts, and age/gender
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Soft Factors with a Hard ImpactAcceptance of entrepreneurship as a career
Positive attitudes
Perceptions
Stakeholders to enhance and assist
Cultural & Institutional support
Propensity
Status and media attention on entrepreneurs can be a significant boost to self-confidence and an incentive to carry
on in the face of diversity!
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Developed EconomiesWell-developed economic, political and institutional
environments have lower entrepreneurship rates
Presence and attractiveness of employment alternatives for income
Lower necessity based motivation due to higher level of wealth
Job protection and social security lower the incentive to start businesses
Conservative financial systems and bankruptcy laws pose barriers to entry and exit
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Presence and attractiveness ofemployment alternatives for income
Lower necessity based motivationdue to higher level of wealth
Job protection and social security lower the incentive to start businesses
Conservative financial systems and bankruptcy laws pose barriers to entry and exit
Developed Economies
Cultural factors also play an extremely important role
Professional careers evoke higher social status
Mortgages and tuition fees increase reliance on stable
incomes
Individuals (and their parents) value jobs more highly
Social and legal costs of failure limit the extent of a
safety net
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Developed Economies
At the end of 2012, its TEA* rose to 13%
43% of working age adults believe there are good opportunities for entrepreneurship, a jump of more than 20% from 2011
56% believe they have the capabilities to start a business, a steady ratio despite severe economic volatility of the last 5 years
… highest since 1999; a third higher than 24 other developed economies!
US stands as a dramatic exception …
Policy makers appreciate and indeed, count on the role played by new and small businesses in the US economy!
*Total Early Stage Entrepreneurial Activity (TEA)
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Back in 2008, IHS Global Insight had found that while VC investment represented 0.2% of US GDP, the revenue of companies created by the
industry represented 21% of GDP (2008 - $14T).
A strong VC industry is essential to entrepreneurial growth.
Developed Economies
US is counting on its entrepreneurial sector for job creation, economic development, better healthcare, cleaner technology, and a faster, better, and more secure internet to
build a thriving new economy.
US stands as a dramatic exception …
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Role of Effective Policy
Equity, Debt, Subsidies, Grantsfor start-up, small and growing
businesses
FinanceAccess to Comms., Transp.,
Util., Land & Space for start-ups,small and growing businesses
InfrastructureAccounting & Legal Svcs and
Institutions to promote start-ups,small and growing businesses
Commercial & Legal
No inhibition for individuals tocreate new businesses leading
to greater dispersion of wealth
Cultural & Social
Market Dynamics and Opennessfor start-ups, small and growing
businesses to enter/exit
Entry Regulations
Policies & Regulationsencouraging start-ups, small
and growing businesses
Govt. Policy
Favourable Tax and RegulatoryRegime for start-ups, small
and growing businesses
Programs
Training at Primary & Secondaryschool, and Mentoring & Coaching
at post-school early stages
Education
Commercial Opportunities forstart-ups, small and growing
businesses from National R&D
R&D Transfer
9-Point Entrepreneurship Framework*
*Global Entrepreneurship Monitor (GEM)
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High unemployment and a growing youth population is an incendiary mix that presents a high risk scenario for any country.
Need programs tailored to entrepreneurs that improve the labor market, grow the internal market and provide access to int’l markets.
Identify and implement policies that encourage start-up businesses and support businesses with high growth expectations.
No country can afford to curtail the ambitions and sustainable well-being of its youth … they are its future!
Role of Effective Policy
High-growth oriented approaches to entrepreneurship result in job creation and economic growth.
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Role of Effective Policy
For entrepreneurship to take root in a country, it takes more than just smart people with good ideas
Appetite for entrepreneurship can be dramatically influenced by attitudes and extent of ongoing entrepreneurial activity.
Policies that discourage divisive classifications of race, age, class, gender, and ethnicity, while assimilating socio-economically deprived sections of society promote inclusiveness and fuel economic growth.
Encouraging entrepreneurship education and societal values in primary and secondary schools is a key factor in sustainability of
entrepreneurship as the preferred career choice.
Economic growth through entrepreneurship must not be at the cost of inclusiveness, global awareness of issues and a social conscience; it is this that ensures societal well-being!
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Role of Effective Policy
High-aspiration entrepreneurs are also sensitive to the rule of law:if that is weak, entry regulations might increase the number of new
entrepreneurs, but fewer of these will seek growth.
Protection of IP encourages specialization and supports a course of action that best fits entrepreneurs’ core strengths.
Policy-makers can encourage the entry of entrepreneurs by alleviating red tape with starting new business ventures
Government must consciously formulate effective and targeted policies with supporting programs to stimulate
and support the efforts of entrepreneurs!
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In the absence of a supportive policy framework, quality of entrepreneurial effort suffers and in turn, it diminishes the
economic impact of entrepreneurship.
Role of Effective PolicyMigratory populations and changing demographics as a
consequence is a leverage point
Robust, forward-looking, and equitable immigrant policy contributes to developing an environment within which entrepreneurship can thrive.
Developed economies derive value from migrant entrepreneurs through job creation, while emerging economies benefit from connections to
émigrés who help local businesses expand their reach globally.
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EventsPartnershipsEffective networksBusiness affiliations Cross-border collaborations
Academic Programs
Informed policy agendaPublic/Pvt enabling bodiesAwareness and excitement
Influence
Extend
Deliver
Launch
Asp
irat
ion
Where we want to be
Fostering Entrepreneurship
Flag Discuss Explore Practice
Maturity
Where we are today
Thought leadershipMentoring and coachingAccess to willing capitalInstitutional involvement
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ConclusionEntrepreneurship is a multifaceted and dynamic
phenomenon whose manifestation and behaviour varies widely around the world
Impact of evolution in social values, political climate, economic priorities, technology-driven upheavals in how businesses are run, coupled with an increasing “migration sans frontières” has shaped
the entrepreneurial landscape.
Entrepreneurship is picking-up pace; institutional environment to support it will have to adapt quickly at
local, national, regional and global levels, or risk missing out on the economic benefits of this unstoppable
phenomenon!
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