Entrepreneurship: An Engine for Economic Growth Converting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape

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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19 June 2013

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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!


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


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


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


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.


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


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


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


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


Let’s Get Serious …!

Entrepreneurs play a crucial role in the development and well-being of societies!


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


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!


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


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


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)


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 …


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)


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!


High-growth oriented approaches to entrepreneurship result in job creation and economic growth.



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!



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!


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.


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


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!


Documents

Entrepreneurship: An Engine for Economic Growth Converting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape