Zoltan J. Acs George Mason University

Laszlo SzerbUniversity of Pecs

Global Entrepreneurship and Development Index Launch

Victoria and Albert Museum, London UK

1 March 2011

The Global Entrepreneurship and Development Index

Shaping The Future

“Making predictions is really hard, especially about the future.”

Yogi BeraNew York

Yankees

Stages over time

In an age where human ingenuity powers growth,

the question of the developing economies & their human capital becomes the

largest economic and social opportunity in the history of the world

Jedi Warrior – Killer App

Purpose of GEDIGEDINDEX is a tool.The purpose of the GEDINDEX is to give the

world a “tool to support sustainable growth, and increased standards of living by measuring the contextual nature of successful entrepreneurship.

Support for entrepreneurs and entrepreneurship policy appears to be gaining acceptance globally

However, a real understanding of entrepreneurship & the successful implementation of policies that actually support and lead to the development of high impact firms is rare

Why is true understanding of entrepreneurship and policy rare?

Entrepreneurship is a complex phenomenon with individuals, societal norms, economic, political, and educational institutions interacting around the future (the unknown)

Very difficult to understand (not to mention measure)

What do we mean by entrepreneurship?

High Impact Firms:

•Microsoft•Lenovo•Infosys

NOT: coffee shops, home based businesses, and self-employed

Some call them Gazelles, because they grow fast, employ people, growing partners/suppliers, & generally have deep impact on regional, national, or even

Global Entrepreneurship and Development Index

Created to capture the multidimensional nature of entrepreneurship

Employs qualitative as well as quantitative measures

Uses institutional and individual variables

What the sub indexes can tell us

Attitude measures society’s basic attitudes toward entrepreneurship through education and social stability.

Activity measures what individuals are actually doing to improve the quality of human resources and technological efficiency.

Aspiration measures how much of the entrepreneurial activity is being directed toward innovation, high-impact entrepreneurship, and globalization.

More powerful collectively

Attributes in the sub-indexes, are more powerful collectively than they are individually.

This makes true entrepreneurship, the killer application for sustainable economic development

More powerful collectively

In an efficiency-driven economy (manufacturing) individuals need to be encouraged to be entrepreneurs and start businesses.

In an innovation-driven economy (knowledge-based economy) some entrepreneurs need to create large and successful enterprise

GEDI INDEXThe Global Entrepreneurship and Development Index GEDI is a collaboration between George Mason University, University of Pécs, and Imperial College Business School, London. The GEDI Index combines Global Entrepreneurship Monitor (GEM) data with data on country-level institutional conditions to estimate a country’s Entrepreneurial Attitudes, Aspirations, and Activities. Combined, these three pillars define the entrepreneurial character of a nation.

Each of the three pillars – Attitudes, Aspirations, and Activities – comprises several sub-pillars, such as Opportunity Perception, Cultural Support, Opportunity Start-Ups, Growth Aspirations and New Technology.

For the GEDI method, see www.thegedi.org.

www.thegedi.org

Policy Conclusions and ToolStages of developmentSimple measures do not workThe index tracks wellInstitutions and people both importantPeople become more important as we move

from factor to efficiency to innovation.

Back to the Future: the World in 2050Surging, Shifting

PopulationsAbundance of human

capitalWill we unleash the killer

application: entrepreneurship?

Can we use GEDIndex and others to focus investments, policies, and welcome 3 billion new global citizens to sustainable growth and improved standards of living