Entrepreneurship and Government Policy: An International Perspective

1. Based on the research of the Global Entrepreneurship Monitor Paula Fitzsimons National Coordinator of GEM in Ireland and Member of Executive Committee GEM Global Entrepreneurship and Government Policy: An International Perspective

2. Entrepreneurship and Government Policy • Moving higher up the policy agenda • Its merits lauded by policy makers • The benefits of entrepreneurship are now well accepted.

3. “The need for comprehensive action fostering entrepreneurship is increasingly being recognised by political and economic actors as one of the keys to unlocking greater employment, growth and competitiveness in Europe.” -EU Commission 1998

4. Benefits of Entrepreneurship EU Action Plan 2004: • Growth • Firm survival • Innovation • Employment creation • Technological change • Productivity increases • Exports • Vehicle for personal development • Harness social cohesion

5. “..making the UK the best place in the world to start and grow a business.” -Tony Blair

6. Entrepreneurship and Government Policy • Good policy must be based on good information • The challenge to bridge the information gap

7. A Personal Challenge • Review the 20 year old Enterprise Development Programme • Then and now - a greatly changed environment • Draw on the experience of other countries, as appropriate

8. Many questions • How entrepreneurial is Ireland? • Who are the entrepreneurs? • What are their concerns? • How many have growth aspirations? • What are we already doing well? • What badly? • What can we learn from other countries?

9. Global Entrepreneurship Monitor • Does the level of entrepreneurial activity vary between countries, and if so, to what extent?

10. Global Entrepreneurship Monitor • Does the level of entrepreneurial activity affect a country’s rate of economic growth and prosperity?

11. Global Entrepreneurship Monitor • What makes a country entrepreneurial?

12. Global Entrepreneurship Monitor • What can governments do to affect the level of entrepreneurship?

13. Global Entrepreneurship Monitor Definition of an entrepreneur: “Any type of start-up entrepreneurial initiative, including self-employment”

14. Global Entrepreneurship Monitor The level of entrepreneurship differs between countries and between regions

15. Total Entrepreneurship Activity (TEA) 2003

16. TEA in Selected Countries 2003

17. “Compared to the US, there is less entrepreneurial dynamism in the European Union. Europeans are less involved than Americans in new entrepreneurial initiatives and European businesses do not grow as much as in the US “ - EU Green Paper on Entrepreneurship 2003

18. Entrepreneurial Activity Rates Europe, Ireland and US+3

19. Does entrepreneurship vary over time? • The level of entrepreneurial activity changes overall from time to time • The general rank order of the various countries tends to remain stable.

20. Who are the Entrepreneurs? • Gender • Age • Socio/economic background • Motivation • Social networks

21. TEA Rates by Gender

22. Tackling the Gender Imbalance Providing tailor made support for women and ethnic minorities: • Identify good practices • Improve access to finance and • Develop entrepreneurial frameworks -EU Action Plan 2004

23. What sort of businesses are being started? • Sector • Employment Size • Growth orientation • Degree of innovativeness

24. Issues for Europe • How to produce more entrepreneurs? • How to get more firms to grow? -EU Action Plan 2004

25. Five Strategic Policy Areas • Fuelling entrepreneurial mindsets • Helping entrepreneurs handle risk • Gearing entrepreneurs for growth and competitiveness • Improving the flow of finance • Creating a more SME friendly regulatory and administrative framework

26. EU Faces Double Challenge • Co-ordination and focus • Need to tailor to meet different needs: (i) groups of entrepreneurs, and (ii) different countries and regions

27. GEM Key Informants • Capturing the views of entrepreneurs and experts • 1,300 from 31 countries • Standard questionnaire • Personal interview

28. GEM Key Informants • Drill down within national context • Understand the factors that limit and contribute to entrepreneurship • Facilitate learning from the experience of others

29. Role of Government How effective are Governments’ policy and programmes?

30. Government Policy • Rhetoric, not effective action • Lack of co-ordination • Tax burden • Bureaucracy • Government regulations

31. Government Programmes • Assistance difficult to find • Multiple contacts required • Staff not suitable

32. Influencers on level of entrepreneurial activity • Entrepreneurial framework conditions • Opportunity recognition • Capacity (skills and motivation) • Social networks

33. Environment for Entrepreneurship • Role of culture and social norms • Role of the media • Economic context • Demographic context • Role of Government

34. More than good policies.. “We need local heroes who will create employment and bring economic prosperity and rejuvenation into their communities.” -Barry Gardiner

35. GEM and Policymakers • Annual Monitor • International comparisons • Recommendations of key informants • Facilitates learning from other countries

36. Want to learn more? www.gemconsortium.org • Annual executive global reports • National reports • Contact details