Comparative study of enterpreneurship schemes of 3 countries

8/9/2019 Comparative study of enterpreneurship schemes of 3 countries

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ENTREPRENEURSHIPENTREPRENEURSHIPENTREPRENEURSHIPENTREPRENEURSHIPSCHEMES OF THREE DIFFERENT COUNTRIESSCHEMES OF THREE DIFFERENT COUNTRIESSCHEMES OF THREE DIFFERENT COUNTRIESSCHEMES OF THREE DIFFERENT COUNTRIES

BRAZIL , INDIA &TURKEYBRAZIL , INDIA &TURKEYBRAZIL , INDIA &TURKEYBRAZIL , INDIA &TURKEY

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BRAZIL

Population: 198,739,269

GDP: $2.03 Trillion ('08)

GDP Growth Rate: 5.2% ('08)

GDP per Capita: $10,300

Government: Federal Republic

Total Entrepreneurial Activity in Brazil Average = 12.8%

In 2004, Brazil was the 3rd largest export market for U.S. goods and services.

In 2004 Brazils GDP exceeded $812 Billion Dollars.

Sometimes Highest TEA level in the world.

South Americas dominant economy.

Part of MERCOSUL, 2nd largest customs union in the world and fourth largest consumer

market with a GDP of $221.44 Billion Dollars.

In 2004 Brazils population exceeded 177 million

More than 79 million people in the workforce.

Majority of their industrial activity is concentrated in the south.


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Brazils landmass is larger than the U.S. at 3,290,000 sq. mi.

Worlds 4th largest road system and a large % of the worlds navigable rivers.

Brazil is a leader in entrepreneurship, with an estimated one in eight adults being

entrepreneurs. Much of the business that occurs in Brazil is done by single businesspeopleeither selling their homemade goods or providing their services. Foreign entrepreneurship is a bit

of a rarity in Brazil. It is simple for a local businessperson to open a business by, in most cases,

circumventing the typical red tape associated with starting a business. The regulatory boards are

so poorly managed and so open to bribes that local entrepreneurs can easily sneak by without

following proper procedure. For foreign businesspeople it is much more difficult. Foreigners

draw attention to themselves and therefore fall prey to greater scrutiny. It is imperative for the

foreign businessperson to hire a good broker to handle their interactions with government

officials.

The TEA in Brazil is a little more than 13. Also almost half of this number is women (46%),

which is up from 4 years ago when it was only 29%. New programs have recently been started to

help women become even more involved. Opportunity based entrepreneurship and need based

entrepreneurship are close to being equal.

One of the major problems to getting started in Brazil is paperwork. Bureaucracy in Brazil is

very bad and it takes a while for things to get through certain channels. Despite this, Brazil ranks

very high on the Global Entrepreneurship Model (GEM) list of countries with the highest

entrepreneurial activity.


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INDIA

Population: 1,166,079,217

GDP: $3.319 Trillion ('08)



Government: Federal Republic

Total Indian Entrepreneurial Activity Average = 12.1%

India was second among all nations in Total Entrepreneurship Activity as per the Global

Entrepreneurship Monitor Report of 2002. But after several years of data, India appears to have a

TEA level rather close to the world average. India is ninth in the Global Entrepreneurship

Monitor (GEM) survey of entrepreneurial countries. It is highest among 28 countries in

Necessity based entrepreneurship, while 5th from the lowest in opportunity based

entrepreneurship.

The liberalization, which was started in 1991, and the Information Technology boom of the mid-

late 90s, have been significant factors, leading to a wave of entrepreneurship sweeping through

the country. Indians have entrepreneurial capacity. However the society and government are not

very encouraging towards entrepreneurship. To a large extent, the Indian society is risk averse.


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People usually seek secure and long-term employment, such as government jobs. The physical

infrastructure needs to be improved. Social Attitudes, lack of capital, inadequate physical

infrastructure and lack of government support are major factors of hindrance. India is the fifth

largest economy in the world (ranking above France, Italy, the United Kingdom, and Russia) and

has the third largest GDP in the entire continent of Asia. It is also the second largest among

emerging nations. The liberalization of the economy in the 1990s has paved the way for a huge

number of people to become entrepreneurs.

Over the years India and China have followed opposing strategies for development. While

Chinas growth has been fuelled by the heavy dose of foreign direct investment, India has

followed a much more organic method and has concentrated more on the development of the

institutions that support private enterprise by building a stronger infrastructure to support it. Its

corporate and legal systems operate with greater efficiency and transparency than do Chinas.

The Government has encouraged entrepreneurship by providing training and also the facilities to

succeed, particularly in the rural areas. One style of innovation that really works in a country as

large and diverse as India, is grassroots innovation: this includes inventions for a milieu that is

quintessentially Indian.

Moreover, in India, the post-liberalization and globalization era has brought with it a growing

middle class - roughly estimated to be 250 million - and rising disposable incomes. This presents

a huge potential, which if tapped can be a veritable gold mine. Entrepreneurs can make the best

of this by catering to various demands of this segment. India, with its abundant supply of talent

in IT, management, and R&D, has become the hot bed of outsourcing of services from all parts

of the globe where companies can reduce their costs, but not their quality. In terms of

improvement, there needs to be an increase in the quality and quantity of VC / Angel Investors in

India. Also, the Governments need to still continue reducing the administrative burden on

entrepreneurs, and coordinate among their agencies to ensure that the necessary resources are

directed where they are needed. The physical infrastructure needs to be improved. Socially, the

Indian society is adapting to a more risk friendly environment and also looking for jobs in the

private sector.


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TURKEY

Population: 76,805,524

GDP: $930.9 Billion ('08)



Government: Republican

Parliamentary Democracy

Total Turkish Entrepreneurial Activity Average = 5.9%

Entrepreneurship is increasing in Turkey. The country suffered from very high inflation rates of

up to 100% for the last 10 years. Entrepreneurial projects have had difficult times finding

financial support because of a lack of loans available with reasonable interest rates. However the

recent growth of the economy, decreasing inflation rates and possible membership to the

European Union. Turkey is a good trade partner for U.S. international business firms. Turkeysadvantages include: (1) low labor costs; (2) production of goods that have a ready market in the

U.S., including textiles, leather, and craft products; (3) a political structure that the constitution

mandates to remain secular; (4) aspirations to join the EU; (5) membership in NATO; and (6) a

declining inflation rate.


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The integrity of the constitution was to be guaranteed by the military, and over the last several

decades Turkey has managed to avoid a military government. The influence of the West, through

NATO and the EU, has softened somewhat the hand of the military in Turkish politics. Istanbul,

located at the entrance to the straits leading to the Black Sea, is a major city and major port. It

offers great opportunities to take advantage of the resources from a vast geographical area that

funnel through that marvelous city.

Endeavor Entrepreneurs (Turkey) - are those poised to develop new technologies andinnovations that will transform societies and create thousands of jobs and generate

millions in wages and revenues in developing countries - but lack the role models and

networks to reach their potential. Each month they hold roundtables to leverage the

experience and expertise of our network in discussing the most common management andentrepreneurial challenges in an informal setting. Along with EE from Latin America

and South Africa, they met with the Boston Business Community with a goal to advance

private sector development in emerging markets.

Cisco Systems to invest up to $275 million in Turkey over next five years. One of theinvestment initiatives is for a Cisco Entrepreneurship Institute set up between Cisco, the

Union of Chambers and Commodity Exchanges of Turkey (TOBB) and the Turkish

government, to teach skills for opening and running small businesses.

Growing interest in womens entrepreneurship since the beginning of the 1990s due towomens entrepreneurship development activities by public institutions and civil society

organizations. This has been seen as an increasingly solution to womens unemployment

and means by which women can have a certain degree of economic independence.

The small entrepreneurship project (funded by Japanese Grant Fund) was utilized toevaluate the banking sector and credit policies with a focus on their effects on women

entrepreneurs. These organizations were evaluated to identify ways to serve in provision

of fiscal and economic services to develop womens entrepreneurship.

Businessmen Allen Collinsworth has been a leading entrepreneur in Turkey and believesthat doing his best entails bridging people and businesses locally and internationally. His

success in Turkish business has been being respectful of traditions and values.


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Progressive governments policies protect ideas and encourage entrepreneurshipaccelerate growth growth that has the potential to create opportunity for all Turks and

improve their standard of living.

Small & medium scale enterprise development in Southeast Anatolia (GIDEM) is asector developed by the United Nations Development Program (UNDP) of Turkey to

prepare analytical examination on womens entrepreneurship opportunities in

southeastern Anatolia. Established a Women Entrepreneurship Center in Sanliurfa with

the government and Harran University. Along with an internship program for female

university students to introduce them to business environment and to encourage their

entrepreneurship potential. This is all due to the still prevalent gender equality within

Turkey.

Turkey is ranked 43 out of 178 economies for ease of starting a business. Pozitron, www.pozitron.com, a mobile and alternative communications solution provider

based in Turkey, won the Global Business Plan Contest sponsored by the Harvard

Business School's Entrepreneurship Club. Their business plan focused on its integrated

mobile banking product. Every day, over 100,000 users enjoy Pozitrons mobile

applications and more than 250,000 people communicate through Pozitrons solutions.

Analysis:

After going through the Entrepreneurship schemes of three different countries, we can make

comparison as, Brazil which ranks very high on the Global Entrepreneurship Model (GEM , has

many flaws in its operations. Its regulatory boards are so poorly managed and open to bribes that

local entrepreneurs can easily sneak by without following proper procedure. The TEA in Brazil

is a little more than 13. Also, Foreign Entrepreneurship is rarity in Brazil as they are always

posed to scrutiny. Despite of these drawbacks, efforts are being made to involve more women

and have opportunity based entrepreneurship equal to need based entrepreneurship.


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India which is ranked as second among all nations in Total Entrepreneurship Activity as per the

Global Entrepreneurship Monitor Report of 2002, is also ninth in the Global Entrepreneurship

Monitor (GEM) survey of entrepreneurial countries. Indians have good entrepreneurial capacity.

But social attitudes, lack of capital, inadequate physical infrastructure and lack of government

support are major factors of hindrance. Its corporate and legal systems operate with greater

efficiency and transparency than that of Brazils.In terms of improvement, there needs to be an

increase in the quality and quantity of VC / Angel Investors in India. Also, the Governments

need to still continue reducing the administrative burden on entrepreneurs, and coordinate among

their agencies to ensure that the necessary resources are directed where they are needed.

In Turkey entrepreneurship is at growing stage. It had suffered very high inflation rates of up to

100% because of which its entrepreneurial projects have had a difficult times finding financial

support because of a lack of loans available with reasonable interest rates. But, now

entrepreneurship is being promoted by its various efforts as there are Endeavor Entrepreneurs

who are poised to develop new technologies and innovations, Cisco Entrepreneurship Institute is

going to be set up, Women Entrepreneurship is being encouraged and progressive governments

policies are also implemented.

References

Websites

http://www.factmonster.com/

http://www.entrepreneur.com/

Magazine

Four Ps

Documents

Comparative study of enterpreneurship schemes of 3 countries