HIGH IMPACT ENTREPRENEURS

1December 2012

HIGH IMPACT ENTREPRENEURS

Our economic future is in their

hands.

High-Impact Entrepreneurs

Aramex

Maktoub

Buenos AiresTech Network

Amman Tech Network

IstanbulTech Network

Top entrepreneurs are consistently influential in each city…

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Buenos AiresTech Network

Amman Tech Network

IstanbulTech Network

And, they touch the majority of other firms in the network.

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Sold to Banco Santander for $750M in 2000

Sold to Fox Entertainment in 2007 for undisclosed price

Went public on the NASDAQ in 2007;

now valued at more than $4BN

The entrepreneurs from the three

most influential companies are

very successful in their own right.

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Note: Shade of orange in the chart above illustrates the degrees of separation from the top three firms: 1 = 75% shaded and 2 = 50% shaded. Top 3 are 100% orange.

These entrepreneurs

influenced >80% of the

other firms in the network,

highlighted here in light orange.

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First tech incubator

opens

First local VC firm

launches

Google opens office

Yahoo opens office

Buenos Aires creates a

Tech District

$100M VC firm

launches

Two tech incubators

open

Facebook opens office

The growth of this network of entrepreneurs has also drawn other players into the local entrepreneurial ecosystem.

NUMBER OF COMPANIES IN THE BUENOS AIRES TECH NETWORK BASED ON YEAR FOUNDED

Endeavor launches in Argentina

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How is this relevant?

Can a few high impact entrepreneurs change the world?

There are over 65 million registered companies in the world.





If each company hired 3 employees, we would solve the world’s current unemployment.


Micro (Avg 1.39 employees) SMEs (Avg 35 employees) Big (Avg 1,250 employees)

59m

6m

200k

Number of companies by average size

# of

Firm

s






59m

6m

200k


# of

Firm

s




Nearly 90 percent of

all companies

in the world have

never hired a single

individual.



59m

6m

200k


# of

Firm

s



99.7 percent of all companies inthe world have on average less than

35 employees.




59m

6m

200k


# of

Firm

s

13%

32%

55%

% o

f W

orl

d’s

R

even

ues

200 thousand entrepreneurs

that became BIG have

created most of the wealth and

most of the formal jobs.





A country will grow only if its companies can grow.

Between the US, Spain & Greece, can you guess which countryhas more registered companies?

USA SPAIN GREECE

15,883

54,607

73,216

Micro companies per million people


USA SPAIN GREECE

15,883

54,607

73,216

Micro companies per million people

USA SPAIN GREECE

103

72

38

Large companies per million people


Greece Spain USA

25102

475

# of NEW large companies required to grow GDP by 1 percent%

The good news (for Greece & the world)

Greece Spain USA

25102

475


Bottom line:

1. High Impact Entrepreneurs grow fast and big; and once successful become investors in other ventures.


Greece Spain USA

25102

475


Bottom line:


2. There aren’t many high impact entrepreneurs in the world. But the world doesn’t need that many to grow and create jobs.


Greece Spain USA

25102

475


Bottom line:



3. Public policy can’t just buy more of these entrepreneurs. They only appear as a result of successful entrepreneurs, and success takes time.


Greece Spain USA

25102

475


Bottom line:



3. Public policy can’t just buy more of these entrepreneurs. They only appear as a result of successful entrepreneurs, and success takes time.


Lessons for building a high-impact entrepreneurial ecosystem:

Entrepreneur-led ecosystem development works best. Governments, accelerators, investment firms, service providers and multinational firms play important support roles, but ecosystem development must follow the lead of established entrepreneurs.

It takes more than just start-ups. Successful high-impact entrepreneurs, who “pay-it-forward” by supporting and inspiring the next generation of entrepreneurs, are required.

A small number of high-impact entrepreneurs turn out to be especially critical. Entrepreneurs at the top three most influential companies touched 60%+ of the other companies in the sector.

Entrepreneurs who have successful exits should be encouraged to become active angel investors and/or VCs. Local entrepreneurs who’ve “been there before” can offer the smartest capital to high-potential and attract high-quality partners from outside the region.

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28

THANK YOU

Contact:Cindy Ko

www.endeavor.org

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HIGH IMPACT ENTREPRENEURS