Entrepreneurial_Ecosystem.NL
Miracle and Paradox

Prof Dr Erik Stam
Utrecht University School of Economics &
Utrecht Cente...
Entrepreneurial_Ecosystem.NL
Oh no, not the next Silicon Somewhere…
Entrepreneurial_Ecosystem
Reflects two shifts:
Societal: from Managed Economy to
Entrepreneurial Economy (Thurik, Stam &
A...
NL: Entrepreneurship Miracle or Paradox?
• Amazing growth of entrepreneurship in the
Netherlands, 1987-2012
• Miracle: no ...
Entrepreneurship NL Facts - I
Entrepreneurship Facts - II

TEA Rate 2003-2012 (GEM)
Paraphrasing Einstein
• Not all entrepreneurship that counts can be
counted, and not all entrepreneurship that can be
coun...
Entrepreneurship Facts - III
Entrepreneurship Facts - IV
Entrepreneurship Facts - V
(Eco)systemic Causes & Consequences
• Positive feedback: virtuous circle (for self-employment!)
Changing
preferences

Chan...
(Eco)systemic Causes & Consequences
• Negative/no feedback
– No build up of system for high-growth start-ups (vicious
circ...
Is Entrepreneurial_Ecosystem.NL successful?
Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates
- >175.000 self-employed below poverty lin...
Is Entrepreneurial_Ecosystem.NL successful?
+ Relatively low unemployment rates
- >175.000 self-employed below poverty lin...
Entrepreneurial_Ecosystem.NL
• One entrepreneurial ecosystem, or many (selfempl, high-growth start-ups, intrapreneurship)?...
What’s next?
• Transition from an EE focused on selfemployment,
• To EE that facilitates high-impact new value
creation:
–...
How?
• Education: stimulate ambition and
entrepreneurship (preferences, skills)
• Facilitate / incentivize capital & labou...
Entrepreneurial_Ecosystem.NL
Miracle and Paradox

Prof Dr Erik Stam
Utrecht University School of Economics &
Utrecht Cente...
Entrepreneurial ecosystem nl stam
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Entrepreneurial ecosystem nl stam

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There has been an amazing growth of entrepreneurship in the Netherlands in the period 1987-2012. One the one hand this is a miracle: there is no European country in which the Total Entrepreneurial Activity rate has grown as much as in the Netherlands over the period 2003-2012. On the other hand there is a paradox: this growth is increasingly a matter of growing numbers of solo self-employed, with only low/mediocre rates of growth-oriented entrepreneurship.

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Entrepreneurial ecosystem nl stam

  1. 1. Entrepreneurial_Ecosystem.NL Miracle and Paradox Prof Dr Erik Stam Utrecht University School of Economics & Utrecht Center for Entrepreneurship “ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP” International Workshop jointly organised by the OECD LEED Programme and The Netherlands’ Ministry of Economic Affairs
  2. 2. Entrepreneurial_Ecosystem.NL Oh no, not the next Silicon Somewhere…
  3. 3. Entrepreneurial_Ecosystem Reflects two shifts: Societal: from Managed Economy to Entrepreneurial Economy (Thurik, Stam & Audretsch 2013) Scientific: from Equilibrium Economics to Complexity Economics (Beinhocker 2007)
  4. 4. NL: Entrepreneurship Miracle or Paradox? • Amazing growth of entrepreneurship in the Netherlands, 1987-2012 • Miracle: no country in which the TEA rate has grown as much as in the Netherlands over the period 2003-2012 (and precourse of rising new firm formation and self-employment) • Paradox: increasingly a matter of growing number of solo self-employed, and low/mediocre rates of growth-oriented entrepreneurship
  5. 5. Entrepreneurship NL Facts - I
  6. 6. Entrepreneurship Facts - II TEA Rate 2003-2012 (GEM)
  7. 7. Paraphrasing Einstein • Not all entrepreneurship that counts can be counted, and not all entrepreneurship that can be counted counts. • Entrepreneurship: explore and exploit opportunities for new value creation
  8. 8. Entrepreneurship Facts - III
  9. 9. Entrepreneurship Facts - IV
  10. 10. Entrepreneurship Facts - V
  11. 11. (Eco)systemic Causes & Consequences • Positive feedback: virtuous circle (for self-employment!) Changing preferences Changing formal institutions Higher entry rates Lower entry barriers + Context: high labour protection, concentrated financial sector, + Shocks: 1997-2001 dot.com boom&bust 2008+ financial crisis
  12. 12. (Eco)systemic Causes & Consequences • Negative/no feedback – No build up of system for high-growth start-ups (vicious circle high-growth start-up scandals early 2000s: Baan, World Online) a) Mobility of skilled labour: employment protection legislation, non compete clauses b) Capital market: VC, trade-sales, IPO c) Lack of venturesome demand: innovative procurement d) a)+b): Lack of serial entrepreneurs/informal investors – No champion of intrapreneurship, like Scandinavian countries (in spite of high levels of trust, knowledge work, and decentralized decision making)
  13. 13. Is Entrepreneurial_Ecosystem.NL successful?
  14. 14. Is Entrepreneurial_Ecosystem.NL successful? + Relatively low unemployment rates - >175.000 self-employed below poverty line… (CBS)
  15. 15. Is Entrepreneurial_Ecosystem.NL successful? + Relatively low unemployment rates - >175.000 self-employed below poverty line… (CBS) - No increase in innovativeness SME sector
  16. 16. Entrepreneurial_Ecosystem.NL • One entrepreneurial ecosystem, or many (selfempl, high-growth start-ups, intrapreneurship)? • One national ecosystem, or many (reg, sect, corp)? – Regional ecosystems: e.g. Amsterdam, Eindhoven area, Utrecht, Twente, … – ‘Sectoral’ ecosystems: e.g. gaming, biotech, (construction?) – Corporate ecosystems: intrapreneurship • Systemic causes – Institutions -> resources (capital, labour) for value creation • Success? Successful? +/-/-
  17. 17. What’s next? • Transition from an EE focused on selfemployment, • To EE that facilitates high-impact new value creation: – High growth start-ups – Intrapreneurship – Coalitions of self-employed and other organizations
  18. 18. How? • Education: stimulate ambition and entrepreneurship (preferences, skills) • Facilitate / incentivize capital & labour towards high-impact opportunities
  19. 19. Entrepreneurial_Ecosystem.NL Miracle and Paradox Prof Dr Erik Stam Utrecht University School of Economics & Utrecht Center for Entrepreneurship “ENTREPRENEURIAL ECOSYSTEMS AND GROWTH-ORIENTED ENTREPRENEURSHIP” International Workshop jointly organised by the OECD LEED Programme and The Netherlands’ Ministry of Economic Affairs

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