Entrepreneurship Thought for the Day:

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Entrepreneurship Thought for the
Day Entrepreneurship is the transformation of
an idea into an opportunity. Jeff
Timmons Babson College
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(No Transcript)
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But thats not what I came here to talk to you
about. Arlo Guthrie Alices Restaurant
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Global Entrepreneurship Monitor 2000

• NGA Policy Academy
• Palm Springs, California
• November 16, 2000

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What is GEM 2000?

• Collaborative effort of the worlds best scholars
  in entrepreneurship to study the relationship
  between entrepreneurship and economic growth.
• Comparable assessment in 21 countries (compared
  to 10 in 1999).
• Based on a sample survey of the adult population,
  in-depth interviews with national experts on
  entrepreneurship in each country, and
  standardized secondary data.

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GEM2000 Focuses on Three Questions

• Does the level of entrepreneurial activity vary
  between countries, and if so, by how much?
• Does the level of entrepreneurial activity affect
  a countrys rate of economic growth?
• What makes a country entrepreneurial?

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Finding One The level of entrepreneurship
differs significantly between countries.
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Finding Two Entrepreneurship is strongly
associated with economic growth?

• The level of entrepreneurial activity explains 70
  percent of the difference in economic growth
  among nations.
• All nations with high levels of entrepreneurial
  activity have above average rates of economic
  growth.
• Only a few nations that have above average rates
  of economic growth have low levels of
  entrepreneurship.

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Finding Three Most firms are started and
operated by men with peak entrepreneurial
activity among those aged 25-34.
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Finding Four Financial Support is highly
associated with the level of entrepreneurial
activity.
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Finding Five Education plays a vital role in
entrepreneurship.

• Taken alone, post-secondary education explains 40
  percent of the difference in entrepreneurial
  activity among GEM countries.
• Entrepreneurship education was ranked among the
  top priorities by experts interviewed in all of
  the GEM countries.

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Finding Six The perceived social legitimacy of
entrepreneurship makes a difference.
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National Expert Analysis
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Public Policy Implications

• Promoting entrepreneurship, its role in society
  and the opportunities it presents for personal
  gain, appear to be critical for facilitating
  economic growth.
• Policies geared toward enhancing the
  entrepreneurial capacity of a society (i.e., the
  skills and motivation to pursue opportunities)
  will have the greatest impact on the level of
  entrepreneurial activity.
• Increasing the participation of women and
  minorities in entrepreneurship is necessary for
  long-term economic prosperity.

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Public Policy Implications (continued)

• For the greatest long-term impact, policies
  should encourage the involvement of people
  younger than 25 and older than 44 in the
  entrepreneurial process.
• Any government committed to sustained economic
  progress must ensure that all aspects of its
  economic system are conducive to and supportive
  of increased levels of entrepreneurial activity.
  This includes minimizing taxation, ensuring
  access to labor, lowering non-wage labor costs,
  reducing the regulatory burden and making it
  easier to do business with the government.

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Public Policy Implications (continued)

• Policies should facilitate the development of a
  professional venture capital industry and create
  incentives for private individuals to invest
  directly in early-stage businesses. NOTE
  Private capital investment in the U.S. (63
  billion in 1999) outpaced investment by the
  venture capital industry (46 billion).