This document discusses promoting entrepreneurship in developing countries. It begins with an overview of global youth unemployment trends and how new businesses are major job creators. Specifically, businesses under 5 years old create the majority of private sector jobs. The Empretec program, developed by UNCTAD, is highlighted as an effective method of entrepreneurship development through workshops that develop personal entrepreneurial competencies. Evaluations of Empretec found businesses experienced increased profits and employment after participating entrepreneurs completed the program. The document advocates for national entrepreneurship policies and strategies based on UNCTAD's policy framework to support startups and job growth.

1. Promo%ng
Entrepreneurship
in
developing
countries:
From
Policy
formula%on
to
program
implementa%on
Alejandro
Rubias,
November
2014

2. Agenda
• Entrepreneurship
and
Employment
trends
• Entrepreneurship
Policy
Framework
• Empretec

3. Entrepreneurship And
Employment trends

4. Global
Demographic
and
Employment
Trends
Overall,
the
global
youth
unemployment
rate
is
projected
to
rise
to
12.8
per
cent
in
2018
Geographic
dispariIes:
in
2012,
youth
unemployment
rates
were
at:
Source:
InternaIonal
Labour
OrganizaIon
(2013)
and
Youth
Business
InternaIonal
28.3%
IN THE MIDDLE
EAST
23.7%
IN NORTH
AFRICA
9.8%
IN EAST
ASIA
9.3%
IN SOUTH
ASIA
73.4
MILLION
YOUNG PEOPLE
UNEMPLOYED

5. Who
generates
employment?
• Over
the
last
25
years
the
majority
of
private
sector
jobs
were
created
by
businesses
under
5
years
old
• In
fact
there
is
a
stronger
correlaIon
between
the
age
of
a
business
and
the
ability
to
create
jobs,
rather
than
the
size
of
the
business
• Moreover
new
and
young
companies
contribute
to
economic
dynamism
by
injecIng
compeIIon
into
markets
and
spurring
innovaIon

6. Entrepreneurship
for
employment
creaIon
Entrepreneurship
and
new
innovaIve
firms
create
jobs
and
growth:
Source:
Endeavor
2011
from
companies
across
LaIn
America
to
Africa,
the
Middle
East,
and
Southeast
Empretec contribute to job creation:
•
Impact
assessments
from
the
Empretec
Programme
confirm
the
fact
that
invesIng
in
entrepreneurship
development
leads
to
job
creaIon.
•
E.g.
In
Brazil,
entrepreneurs
who
benefi[ed
from
the
Empretec
workshop
generated
jobs
and
an
average
employment
growth
of
16%
per
year.
•
Likewise,
in
businesses
surveyed,
employment
grew
by
14%
in
the
United
Republic
of
Tanzania.
Source:
Endeavor
2011
from
companies
across
LaIn
America
to
Africa,
the
Middle
East,
and
Southeast

7. Entrepreneurship and the Informal Sector in developing countries
• A lot of this entrepreneurial activity still happens outside the formal sector
• The crisis has increased informality in many developing countries. Globally, the
average size of the informal sector is estimated at 34.5% of countries’ official GDP.
Source: Schneider, Buehn and Montenegro (2010)
Size of informal sector
(% of official GDP)

8. Entrepreneurship
and
employment
creaIon
in
developing
countries
• Developing
countries
such
as
Mongolia
are
creaIng
new
opportuniIes
from
the
acIviIes
of
foreign
companies
and
internal
growth.
• But
in
order
to
seize
these
opportuniIes
the
local
market
and
SME's
in
parIcular
needs
to
have
the
sufficient
producIve
capacity.
• To
develop
this
capacity,
developing
countries
need
to
work
on:
– Regulatory
and
insItuIonal
reforms
for
foreign
and
local
private
sector
development
– Programmes
for
achieving
diversificaIon
– Tackling
the
infrastructure
challenge
–
Building
knowledge
and
skills
– Developing
financial
and
business
services
– Unleashing
the
potenIal
of
tourism
– PromoIng
niche
market
programmes
–
PromoIng
SME
development
and
entrepreneurship
for
regional
diversificaIon

9. Entrepreneurship and the Informal Sector in developing countries
• Entrepreneurship-friendly business environment reforms have helped to
increase formal business registration, especially in developing countries …
Source: World Bank, Doing Business 2013

10. Entrepreneurship
Policy Framework

11. Pedro
30
years
Building an innovative and entrepreneurial country
THE
STORY
OF
PEDRO:
just
a
kid
in
Ecuador
today
Pedro
10
years
16
years:
high
school
21
years:
no
advice:
look
for
a
job
or
start-­‐up?
25
years:
dealing
with
the
admin
26
years:
First
start-­‐
up
HOT
DOGS
28
years:
tough
to
access
credit
Scared
to
fail

12. Pedro-­‐
30
years
Entrepreneur
Building an innovative and entrepreneurial country
THE
STORY
OF
PEDRO
BY
20-­‐20
Pedro-­‐10
Years
16
years:
Development
of
entrepreneurial
competencies
21
years:
Bootcamp
on
Entrepreneurship
and
Innova%on
25
years:
Public
Private
Partnership
improving
business
environment
28
years:
Informa%on
to
create
innova%ve
start
ups
29
years:
Access
to
Finance
Network
support

13. The UNCTAD Entrepreneurship Policy Framework comprises
6 areas that have a direct impact on entrepreneurial activity

14. UNCTAD’s Entrepreneurship Policy Framework
Entrepreneurship development requires an enabling entrepreneurship eco-system
UNCTAD’s Entrepreneurship Policy Framework as a base to enhance the entrepreneurship
eco-system and formulating a national entrepreneurship strategy
• Identifies policy objectives and options in the form of recommended actions
• Proposes checklists, case studies and good practices
• Provides an interactive online inventory of good practices
• Offers a user guide and methods for policy monitoring and evaluation
• Provides a set of indicators to measure progress

15. www.unctad.org/epf
Malaysia: In its Vision 2020, and in the 10th Malaysia Plan 2011-2015
the Prime Minister identifies entrepreneurship as a key element to generate
economic growth and achieve the goals premised on higher income,
inclusiveness and sustainability.
Indonesia: Regional “Ease of Doing Business“ Benchmarks allow for
more easily comparable conditions within the same country and
creates peer pressure for reform
Jordan: Busines Development Centre hosts UNCTAD’s
EMPRETEC programme for entrepreneurship
development

16. www.unctad.org/epf
Uganda: CELAC - Collecting and Exchanging Local
Agricultural Content – Initiative distributes information to
farmers using mobile phones
unctad.org/epf
Nigeria: public-private partnership
to improve access to finance to
Women owned SMEs
Uzbekistan: 2011 State Programme,
“The Year of Small Business and Entrepreneurship”

17. The UNCTAD Policy Framework in action and using it as a guide:
1. Understand what are the existing policies that promote
entrepreneurship
2. Evaluate the current business environment in which entrepreneurs
start, operate and grow their businesses
3. Define the overall strategy of entrepreneurship in terms of
priorities, objectives and targets based on the gaps identified
4. Design-focused initiatives to address gaps and achieve goals
5. Regularly monitor and evaluate the impact of the policy to ensure
the relevance and effectiveness of implemented actions
1 month
3-5 months
3-5 months
4-5 months
Continuing
Process

18. EMPRETEC:
Key
competences
of
a
successful
entrepreneur
UNCTAD
Programme
on
entrepreneurship
development

19. What
is
EMPRETEC
Empretec
is
a
United
NaIons
programme
established
by
UNCTAD
to
promote
the
creaIon
of
sustainable
small-­‐
and
medium-­‐sized
enterprises
(SMEs).
Empretec
works
to
support
entrepreneurs
to
build
innovaIve
and
internaIonally
compeIIve
SMEs
«emprendedores»
(
entrepreneurs)
«tecnologia»
(techn
ology)
EMPRETEC

20. Program
evoluIon
1988
Program
was
first
introduced
in
ArgenIna
2014
340,000
graduates
35
countries
25
years
of
success

21. Empretec
Centers
Worldwide
CANADA
UNITED STATES of AMERICA
ALASKA (USA)
MEXICO
VENEZUELA
COLOMBIA
BRAZIL
PERU
BOLIVIA
HONDURAS
NICARAGUA
ECUADOR
GUYANA
SURINAME
FRENCH
GUIANA
COSTA RICA
PANAMA
GUATEMALA
CUBA
PARAGUAY
ARGENTINA
URUGUAY
CHILE
GREENLAND
ICELAND
UNITED
KINGDOM
REPULIC OF
IRELAND
NORWAY
SWEDEN
FINLAND
DENMARK
ESTONIA
LATVIA
LITHUANIA
POLAND
BELARUS
GERMANY
CZECH
REPUBLIC
NETHERLANDS
BELGIUM
FRANCE
SPAIN
PORTUGAL
SWITZ.
AUSTRIA
SLOVAKIA
HUNGARY
ROMANIA
BULGARIA
ITALY
UKRAINE
TURKEY GREECE
SYRIA
IRAQ
SAUDI
ARABIA
YEMEN
OMAN
UAE
LIBYA EGYPT
MOROCCO TUNISIA
ALGERIA
WESTERN SAHARA
MAURITANIA
MALI
NIGER CHAD
SUDAN
ETHIOPIA
SOMALIA
UGANDA
SENEGAL
GUINEA
LIBERIA
COTE
D’IVOIRE
BURKINA
GHANA
NIGERIA
CAMEROON
CENTRAL
AFRICAN REPUBLIC
GABON CONGO
DEMOCRATIC
REPUBLIC OF
CONGO
KENYA
TANZANIA
ANGOLA
ZAMBIA
NAMIBIA
ZIMBABWE
BOTSWANA
REPUBLIC
OF SOUTH
AFRICA
MADAGASCAR
RUSSIAN FEDERATION
KAZAKHSTAN
GEORGIA
IRAN
UZBEKISTAN
TURKMENISTAN
AFGHANISTAN
KYRGYZSTAN
TAHKISTAN
PAKISTAN
INDIA
CHINA
NEPAL
MYANMAR
THAILAND
SRI
LANKA
MONGOLIA
NORTH
KOREA
SOUTH
KOREA JAPAN
TAIWAN
CAMBODIA
LAOS
VIETNAM
PHILIPPINES
MALAYSIA
INDONESIA
PAPUA
NEW GUINEA
AUSTRALIA
NEW
ZEALAND
EL SALVADOR
DOMINICAN REPUBLIC
MAURITIUS
BENIN
JORDAN

22. Methodology
Developed
by
Harvard
University
Based
on
a
behavioral
approach
to
entrepreneurship
Concentrates
on
a
pracIcal
approach
to
educaIon
Training
by
changing
entrepreneurs
PracIcal
tool
for
the
mindset
development
of
Personal
Entrepreneurial
Competencies
(PECs)

23. Personal
Entrepreneurial
Competencies
(PECs)
Achievement
Cluster
• Opportunity-­‐seeking
and
ini%a%ve
•
Persistence
•
Fulfilling
commitments
•
Demand
for
efficiency
and
quality
•
Taking
calculated
risks
Planning
Cluster
• Goal-­‐se]ng
•
Informa%on-­‐seeking
•
Systema%c
planning
and
monitoring
Power
Cluster
• Persuasion
and
networking
•
Independence
and
self-­‐confidence

24. Results
(Brazil
assessment)
Annual
income
before
and
a`er
Higher
73%
The
same
21%
Empretec
Lower
6%
Profit
before
and
a`er
Empretec
Higher
61%
The
same
31%
Lower
8%
Level
of
influence
of
Empretec
on
your
High
80%
Middle
18%
business
Low
2%
Is
it
easier
to
get
a
job
a`er
Empretec?
Yes
88%
No
12%
76%
Made
more
tax
payments
aier
compleIon
of
the
program.

25. Reviews
«The
workshop
was
extremely
useful,
was
a
real
discovery
and
inspira:on.
It
demonstrated
the
lifestyle,
the
development
of
which
will
help
you
to
succeed.
I
think
that
the
main
thing
in
EMPRETEC
–
is
crea:ng
an
atmosphere
that
allows
you
to
understand
your
strengths
and
weaknesses,
as
well
as
the
path
of
cul:va:on.
The
program
has
changed
my
way
of
thinking
and
the
way
I
use
my
:me».
«I
had
the
opportunity
to
prac:ce
and
improve
many
of
my
business
skills.
I
realized
who
I
was
and
how
to
do
business,
how
to
set
different
goals
and
to
achieve
them».

26. Thank
you
for
acen%on!
For more information:
www.empretec.net
www.unctad.org
http://unctad-worldinvestmentforum.org/
Contact:
Alejandro.rubiashernandez@unctad.org