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Ydir Vissers

  1. 1. Driving Entrepreneurship through Strategic Policy Making Ydir Vissers Monitor Group
  2. 2. Economic competitiveness of countries depends on three interdependent pillars Specialized Human Assets Entrepreneur Innovation -ship
  3. 3. Entrepreneurship drives economic competitiveness by cultivati economic agility & innovation The Challenge  High and rising standard of living The Context  Pace of change and global competition The  Cultivating “economic Entrepreneurship agility” and innovation “Solution”
  4. 4. However, it is not always clear how to boost entrepreneurship because of the large number of possible actions and initiatives country could pursue Financing Technology & Infrastructure  Establish community/regional investment funds; tie to  Streamline listing regulations for growing firms seeking to  Upgrade physical infrastructure  Increase number and size of specialized R&D facilities local funding campaigns raise public funds (transportation, utilities, and telecommunications) to  Establish shared R&D facilities / joint university, public  Establish minimum small business lending thresholds for  Streamline regulatory barriers to mergers / support new and growing firms sector and industry facilities banks and lending institutions buy-outs  Offer subsidies such that cost of access to infrastructure is  Create angel funding networks  Establish organizations to facilitate firm buy-outs not prohibitive  Allow indirect personal contributions to seed funding  Establish government subsidies / loans for new and (e.g., pensions) growing firms  Establish a centralized organization to advise entrepreneurs on available financing options  Ensure lending policies are no more stringent for new/growing firms than for established firms Legislation and strategies  Provide tax incentives to increase R&D activities, and to  Provide legislative incentives for use of stock options increase commercialization of R&D  Ensure stock option laws apply equally to new, growing  Ensure business taxes have a similar effect for and established firms new, growing, and established firms Skills & Talent  Establish tax policies that do not interfere with launch or  Ensure competition laws treat all firms equally; no unfa blocking of new firms entering the market by establishe  Establish curriculum requirements on entrepreneurship  Set up co-op / internship programs growth firms and new firm formation in primary and secondary schools  Scholarship/ award / sabbaticals for highly meritous  Strengthen intellectual property rights  Establish colleges and university course / program candidates to create greater access to and affordability of offerings or distance learning partnerships on post-secondary schooling entrepreneurship and new firm creation and  Set up a regular talent scan in schools, colleges and  management education Support / establish business programs for  industry for high-potential and serial entrepreneurs Set up mentorship/ apprenticeship programs for high Administrative Burdens mid-career professionals  Refine regulations to ensure they do not interfere with  Ensure that administrative costs of compliance with potential individuals start up of new firms and apply to new and existing firms government regulations do not unfairly burden new firm  Support endowment giving to grow number  Support new venture competitions in a predictable way  Streamline the number licenses / permits needed to sta and size of local colleges and universities  Recruiting targeted talent to a region; offer relocation  Refine procurement policies to apply equally to new as to a firm to reduce time and complexity  R&D grants & financing for experimentation assistance established firms  Establish a “Small Business Clause” in considering futur infrastructure  Ensure labor regulations do not discourage hiring of small legislation or large number of employees  Provide support for business tax filing Support Services  Increase number, variety, and quality of business support services to fill needs of new and growing firms  Provide incentives for colleges, government research centers and anchor firms to make their technology Mindset  Dedicate a regular media column / publication to profiles  Support regional enhancements and initiatives to attrac  Offer discounts, grants & matching programs to ensure available to new / growing firms for commercialization of successful and high-potential entrepreneurs diverse, young people and families availability of affordable support  Establish formal tech transfer mechanisms to capture (e.g., Parks, entertainment complexes, pre-school  Sponsor conferences, workshops and business case  Set up a centralized agency to link support services and knowledge spillovers education) competitions; leverage business associations and government programs  Subsidize new and growing firms seeking to acquire networking organizations  Review personal income tax levels to ensure individuals  Increase number and size of incubators to launch and/or develop latest technology are not discouraged from starting or growing firms  Establish entrepreneurship awards, research grants and different types of firms  Provide incentives for spin-offs from research institutions scholarship programs  Review the personal effects (financial & reputation-  Create business associations and anchor firms related) from bankruptcy; ensure these are not  Create a regional publicity campaign to attract innovative  Appoint a small business ombudsman to advocate for and entrepreneurial individuals irreversible small business needs (e.g., Entrepreneurship Advocacy  Provide personal tax and health insurance breaks for Office) entrepreneurs
  5. 5. In general, literature seems to suggest that countries need to “do everything” to foster entrepreneurship Talent & Legislation & Ideas Regulation Intellectual Capacity Developing the Life Personality Situation entrepreneur Heritage Business & Social & Creating the Financial Cultural Context
  6. 6. Our research suggests that high impact entrepreneurship could be catalyzed through targeted policy levers High Impact Entrepreneurs Revenue CAGR Traditional Entrepreneurship Net Operating Profits
  7. 7. However, one needs to choose from several alternate paths tha could drive high impact entrepreneurship Pathway Brief Description 1 Classic University-developed IP is commercialized, in large Approach part with the help of venture capital 2 A region attracts branch plants and R&D centers from Anchor Firm which new firms spin-out, often with help and support of the anchor firm 3 A local entrepreneur achieves great success, and this Home-Grown Genius motivates, and creates opportunities for more entrepreneurship 4 Downsizing at established firms and/or research Event Driven organizations forces and motivates entrepreneurial efforts
  8. 8. The “classic” Silicon Valley route to entrepreneurial success has been well understood 1 Classic University-developed IP is “Silicon Valley” commercialized, in large part with Approach the help of venture capital
  9. 9. However, not many countries in the world have been able to replicate this success
  10. 10. Anchor firm driven entrepreneurship can work but it requires a (aspiring) industry leader 2 A region attracts branch plants and R&D Anchor Firm centers from which new firms spin-out, often Model with help and support of the anchor firm South Korea
  11. 11. Local heroes can be the catalyst for entrepreneurial activities and a vibrant ecosystem of start-up activity 3 A local entrepreneur achieves great Home Grown success, and this motivates, and creates Genius opportunities for more entrepreneurship Bangalore
  12. 12. An adverse event can be leveraged to drive the creation of an entrepreneurial environment 4 Downsizing at established firms and/or Event Driven research organizations forces and motivates Model entrepreneurial efforts 1900 1910 1930 1950 1970 1990 Hospitality and Tourism Sporting and Transportation Leather Goods and Logistics Aerospace Power Vehicles Generation and Defense Climate and Communications Geography Equipment Analytical Instruments Information Technology Education and U.S. Military Knowledge Creation Base Medical Bioscience Devices Research San Diego Centers Biotechnology / Pharmaceuticals
  13. 13. Irrespective of the chosen model to success, several key stakeholders need to play an important role Key Stakeholders Private Sector Academia Government
  14. 14. Most importantly, governments need to develop policies that facilitate entrepreneurship Establish role models for entrepreneurs Invest in Attract education anchor firms Collaborate with private sector and academia Streamline regulations Provide incentives
  15. 15. A government has many policy levers at its disposal to drive entrepreneurship Policy Drivers Entrepreneur- Business Policy Motivation ship Assets Assistance Accelerators Technology & Support Financing Skills and Talent Legislation Admin. Burdens Mindset Infrastructure Services Entrepre. Business Entrepre. Tech Equity Debt Training and Tech and Infra- Taxes / Com- Transac-tion Culture & Mngt. Advisory Develop. Commer- Financing Financing Education R&D structure Incentives petition Costs Attitudes Capacity Services Programs cialization Supply Supply of Supply of Skills Competency Govt. Access to Credits / Market Govt. of Equity Expenditures Physical Infra. Business Legitimacy Debt Capital Development / Experien. Programs Tech. Incentives Openness Regulations Capital Services Corporate/ Access to Access to Affordability of Networking Affordability of Individualist Preparation Business Govt. Impact Equity Capital Debt Capital Bus. Svcs. Orga-nizations Tech. Culture Taxes Attitudes Financing Quality of Stock Option Incubators Spin-outs towards Incom Strategies Bus. Svcs. Rules Tax Attitudes Exit Strategies towards Bankruptcy
  16. 16. Using OECD’s Growth Model, we have assessed the impact of these policy levers 1 2 3 OECD Multi-Factor Productivity Model ICT HR Capital Labour Innovation Entrepreneurship Entrepreneurship Performance Value Creation / Growth Entrepreneurship Policy Drivers
  17. 17. There are a number of key policy drivers that have a universal impact Create incentives for innovation Facilitate entry and exit of new businesses Manage the risk and reward equation Change the perceptions and cultural conditions
  18. 18. 2003–2012 Entrepreneurship Benchmarking Initiative has been an effort to benchmark entrepreneurship policies in countries and regions 2003-11 Entrepreneurship Benchmarking Initiative Countries, Regions, and Sponsors
  19. 19. In collaboration with the Kauffman Foundation and the Helleni Association of Young Entrepreneurs we will know more about Greece in November • Entrepreneurship Policy Survey in 60 countries • Results to be presented November 12-18 w-policy-survey