2. Overview
• Lorrie McGovern:
• Welcome & Introductions
• An introduction to Entrepreneurship
• Jon Norris:
• The top 10 global entrepreneurship rankings for 2011
• Comparison between Singapore, Hong Kong/China, Taiwan
and the United States
• LaFern Batie:
• Best practices in entrepreneurship
• Panel Discussion
• Wen Chung: Panelist – Taiwan
• Anthony “Tony” Gaeto: Panelist - China
• Conclusion
3. ENTREPRENEUR
• http://www.merriam-
webster.com/dictionary/entrepreneur
• One who organizes,
manages, and assumes the
risks of a business or
enterprise
http://www.yourmoneydictionary.com/Entrepreneur.aspx
4. ENTREPRENEURSHIP
• http://www.businessdictionary.com/definition/entrepreneurship.html
• The capacity and willingness to undertake conception,
organization, and management of a productive venture
with all attendant risks, while seeking profit as a reward.
• Entrepreneurial spirit is characterized by innovation and
risk-taking, and an essential component of a nation’s ability
to succeed in an ever changing and more competitive global
marketplace.
http://www.getentr
epreneurial.com/en
trepreneurship/wha
t_is_true_entrepren
eurship.html
5. http://www.sba.gov/
• Small business – 500 or fewer employees
• More than 50 percent of non-farm private GDP
• Approximately 27.5 million businesses; many family owned
• Employ approximately half of the private sector workforce
• Nearly all businesses start as a small business
• Critical to economic growth and job creation
• Hit hard by economic challenges during 2008 and 2009:
• Number of new start-ups dropped by approximately 11.8%
• Number of bankruptcies increased by approximately 40%
6. How Important Are Small
Businesses to the U.S. Economy?
http://www.smallbusinessnotes.com/small-business-resources/how-important-are-small-businesses-to-the-us-economy.html
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 45 percent of total U.S. private payroll.
• Generated 60 to 80 percent of net new jobs annually over the
last decade.
• Produce 13 to 14 times more patents per employee than
large patenting firms. These patents are twice as likely as
large firm patents to be among the one percent most cited.
• Are employers of 41 percent of high tech workers (such as
scientists, engineers, and computer workers).
• Are 53 percent home-based and 3 percent franchises.
• 97 percent of all identified exporters.
7. Federal Reserve Chairman,
Ben Bernake
• Critical component to drive the
economic recovery.
• Small businesses support local
communities.
• Agility of small business helps
bring innovative products to
the global marketplace.
• November 10, 2011 • Entrepreneurship provides an
• Conference on Small option for people who have
Business Entrepreneurship insufficient retirement savings.
• Confirmed the importance
of small businesses
http://blogs.wsj.com/in-charge/2011/11/10/bernanke-small-businesses-
important-to-economic-recovery/
8. Where Will Jobs Come From?
http://www.kauffman.org/uploadedfiles/where_will_the_jobs_come_from.pdf
• The Kauffman Foundation is the world's largest foundation
devoted to entrepreneurship.
• Authors Litan and Stangler (Nov. 2009), census data reveals
that two-thirds of new job growth comes from firms that are
between one and five years old.
• Job creation comes from three sources:
• startups;
• young firms, ages one to five; and
• the largest and oldest companies.
• “New and young companies and the entrepreneurs that create
them are the engines of job creation and eventual economic
recovery.”
9. Exporting Advantages
http://www.sba.gov/content/where-will-your-next-customer-come-look-around-world
• Ninety-six percent of the world’s consumers live outside of the
United States
• Exporting helps businesses weather downturns in the
domestic economy.
• U.S. businesses have a competitive advantage for producing
high-quality, innovative goods and services.
• Advancements in e-commerce and logistics have lowered the
costs of doing business overseas.
• Free trade agreements have opened up markets in Australia,
Chile, Singapore, Jordan, Israel, Canada, Mexico, and Central
America, creating more opportunities for U.S. businesses.
• What type of business can be a successful exporter: Any
business
10. Exporting Myths
http://www.sba.gov/content/where-will-your-next-customer-come-look-around-world#1
1. Too risky
2. Too complicated
3. Domestic market is secure and companies can depend on it
12. Global Entrepreneurship
• Critical to the development and well-being of society.
• Drives and shapes innovation, speeding up structural
changes in the economy
• Create jobs
• Provides new competition, contributing directly to
productivity
• A catalyst for economic growth and national competitiveness.
http://www.unleashingideas.org/
13. What Drives Entrepreneurship?
Factor-Driven Efficiency- Driven Innovation-Driven
Angola* Ghana, Uganda,
Sub-Saharan Africa Zambia South Africa
Egypt*, Iran*, Pakistan,
Middle East/North Africa Saudi Arabia*, West Bank
(MENA) - South Asia and Gaza Tunisia Israel
Argentina, Brazil,
Chile*, Columbia, Costa
Rica, Ecuador, Mexico,
Latin America and Jamaica*, Guatemala*, Peru, Trinidad and
Caribbean Bolivia Tobago*, Uruguay*
Bosnia and
Herzegovina, Croatia*,
Hungary*, Latvia,
Macedonia,
Montenegro, Romania,
Eastern Europe Russia, Turkey Slovenia
Malaysia, China, Australia, Japan, Republic of
Asia Pacific Vanuatu Taiwan* Korea
Belguim, Denmark Finland,
France, Germany, Greece,
Iceland, Ireland, Italy,
Netherlands, Norway, Portugal,
United States and Spain, Sweden, Switzerland,
Western Europe United Kingdom, United States
* In transition to the next stage
Global Entrepreneurship Monitor (GEM) groups the participating economies into three levels:
1. Factor Driven
2. Efficiency Driven
3. Innovation Driven
14. Entrepreneurial Measures
• World Bank’s Ease of Doing Business Rankings
http://www.doingbusiness.org/rankings
• Global Entrepreneurship Monitor Reports
http://www.gemconsortium.org/
15. So who in the world is
Entrepreneurial?
Ease of Doing Dealing with Trading
Starting a Getting Registering Getting Protecting Paying Enforcing Resolving
Economy Business Rank Construction Across
Business Electricity Property Credit Investors Taxes Contracts Insolvency
▲ Permits Borders
Singapore 1 4 3 5 14 8 2 4 1 12 2
Hong Kong
SAR, China
2 5 1 4 57 4 3 3 2 5 16
New
Zealand
3 1 2 31 3 4 1 36 27 10 18
United
States
4 13 17 17 16 4 5 72 20 7 15
Denmark 5 31 10 13 11 24 29 14 7 32 9
Norway 6 41 60 12 8 48 24 27 9 4 4
United
Kingdom
7 19 22 60 68 1 10 24 13 21 6
Korea, Rep. 8 24 26 11 71 8 79 38 4 2 13
Iceland 9 37 34 1 11 40 46 35 81 3 11
Ireland 10 13 27 90 81 8 5 5 21 62 10
16. Comparing the United States with China/Hong-Kong,
Singapore and Taiwan
• United States
• Singapore
• China
• Taiwan
17. Starting a Business
Starting a Starting a Business - Starting a Starting a Business Starting a Business -
Ease of Doing
Economy Year Business - Procedures Business - - Cost (% of income Paid-in Min. Capital (%
Business Rank
Rank (number) Time (days) per capita) of income per capita)
China
2012 91 151 14 38 3.5 100.4
Singapore
2012 1 4 3 3 0.7 0
Taiwan,
China 2012 25 16 3 10 2.5 0
United
States 2012 4 13 6 6 1.4 0
18. Dealing with Construction
Permits
Dealing with
Dealing with
Dealing with Construction Dealing with Construction
Ease of Doing Construction
Economy Year Construction Permits - Permits - Cost (% of income
Business Rank Permits - Time
Permits - Rank Procedures per capita)
(days)
(number)
China
2012 91 179 33 311 444.1
Singapore
2012 1 3 11 26 18.1
Taiwan,
China 2012 25 87 25 125 41.9
United
States 2012 4 17 15 26 12.8
19. Registering Property
Registering Property -
Ease of Doing Registering Registering Property - Registering Property -
Economy Year Cost (% of property
Business Rank Property - Rank Procedures (number) Time (days)
value)
China
2012 91 40 4 29 3.6
Singapore
2012 1 14 3 5 2.8
Taiwan,
China
2012 25 33 3 5 6.2
United
States
2012 4 16 4 12 0.8
20. Getting Credit
Ease of Getting Credit - Getting Credit -
Getting Getting Credit - Getting Credit - Depth
Doing Public registry Private bureau
Economy Year Credit - Strength of legal of credit information
Business coverage (% of coverage (% of
Rank rights index (0-10) index (0-6)
Rank adults) adults)
China
2012 91 67 6 4 82.5 0
Singapore
2012 1 8 10 4 0 53.8
Taiwan,
China 2012 25 67 5 5 0 90.9
United
States 2012 4 4 9 6 0 100
21. Protecting Investors
Ease of Protecting Investors Protecting Investors -
Protecting Protecting Investors - Protecting Investors -
Doing - Extent of Strength of investor
Economy Year Investors - Extent of director Ease of shareholder
Business disclosure index (0- protection index (0-
Rank liability index (0-10) suits index (0-10)
Rank 10) 10)
China
2012 91 97 10 1 4 5
Singapore
2012 1 2 10 9 9 9.3
Taiwan,
China 2012 25 79 7 4 5 5.3
United
States 2012 4 5 7 9 9 8.3
22. Paying Taxes
Ease of Paying Taxes - Paying Paying Taxes - Paying
Paying Paying Taxes Paying Taxes -
Doing Payments Taxes - Labor tax and Taxes -
Economy Year Taxes - - Time (hours Total tax rate (%
Business (number per Profit tax contributions Other taxes
Rank per year) profit)
Rank year) (%) (%) (%)
China
2012 91 122 7 398 5.9 49.6 7.9 63.5
Singapore
2012 1 4 5 84 6.5 15.9 4.7 27.1
Taiwan,
China 2012 25 71 15 245 13.7 18.4 3.5 35.6
United
States 2012 4 72 11 187 27.6 10 9.1 46.7
23. Trading Across Borders
Trading Trading
Trading Across
Ease of Trading Across Trading Across Trading Across Across Trading Across
Borders -
Doing Across Borders - Borders - Cost to Borders - Borders - Borders - Cost to
Economy Year Documents to
Business Borders Time to export (US$ per Documents to Time to import (US$ per
export
Rank - Rank export container) import (number) import container)
(number)
(days) (days)
China
2012 91 60 8 21 500 5 24 545
Singapore
2012 1 1 4 5 456 4 4 439
Taiwan,
China 2012 25 23 6 12 655 6 12 720
United
States 2012 4 20 4 6 1,050 5 5 1,315
24. Enforcing Contracts
Enforcing Enforcing
Ease of Doing Enforcing Contracts - Cost (% Enforcing Contracts -
Economy Year Contracts - Contracts - Time
Business Rank of claim) Procedures (number)
Rank (days)
China
2012 91 16 406 11.1 34
Singapore
2012 1 12 150 25.8 21
Taiwan,
China 2012 25 88 510 17.7 45
United
States 2012 4 7 300 14.4 32
25. Resolving Insolvency
Resolving Insolvency -
Ease of Doing Resolving Resolving Insolvency - Resolving Insolvency -
Economy Year Recovery rate (cents on the
Business Rank Insolvency - Rank Time (years) Cost (% of estate)
dollar)
China
2012 91 75 1.7 22 36.1
Singapore
2012 1 2 0.8 1 91.3
Taiwan,
China 2012 25 14 1.9 4 82.1
United
States 2012 4 15 1.5 7 81.5
26. Best Practices In
Entrepreneurship
Alignment & Disciplined
Execution Organization
Strategic
Business
Plan/
Development
Roadmap
Solid
Effective Strong
Leadership
Business Collaboration
Performance
John Joyce: Any industry really -- most manufacturers or service providers that make a product that can be sold in a foreign market and that covers most companies. It is a good idea that they’ve already been established and have a good track record in the domestic market as a starting point. Ron Johnson: U.S. small businesses looking to grow need to think outside the box by thinking outside of the U.S. borders. In this series “Where Will Your Next Customers Come From?” we’ll explore what it takes to become a successful exporter and the vast array of U.S. government services to help you grow.
exporting is considered too risky by some companies and there are additional risks involved, but they are identifiable and you can mitigate those risks using affordable export assistance that’s available. And in some cases, that myth is completely untrue. For instance, in the Canadian market, there’s really no more risk from selling in the U.S. domestic market.Another myth might be that the domestic market is secure and companies can depend on it and that’s really not true any longer. Globalization has made it easier to buy and sell products in multiple markets and that’s a two-way street so that means it’s easier for U.S. companies to export but it’s also easier for their overseas competitors to come into their domestic market and sell. So I think that it’s advisable to meet them in their territory than vice versa.A third myth is that exporting is too complicated and similar to the idea of riskiness, the complicated part of it is that there is additional paperwork. Yes, there are things that you have to be aware of but there’s a lot of assistance to find what those issues are and deal with them and make the move into exporting.
« Japan Matters to Southern California: Launch Event in Los AngelesAsia Pacific Bulletin: After the Earthquake – Reinvigorating US-Japan Policy Dialogue »Fast and Furious: Asia-Pacific Fastest Growing Market for US ExportsAuthor Grace Ruch | Published: June 15, 2011In his weekly address prior to his State of the Union speech in which he pledged to double exports by 2014, President Obama focused on job growth through trade. “If we’re serious about fighting for American jobs and American businesses, one of the most important things we can do is open up more markets to American goods around the world,” he began. The president went on to cite three specific steps taken to increase America’s exports abroad; each involved an Asian country.It was not geographic favoritism that led Obama to the markets of China, India, and South Korea; these Asian partners are among the fastest growing destinations for US exports. Among our top export partners over the last decade (countries where the total ten-year value of exports exceeded $100 billion), nine out of nineteen were in the Asia-Pacific. Of these countries over the same period, India, China, Hong Kong, South Korea and Singapore accounted for six of the top ten fastest growing export markets.The graphic below shows the 15 largest markets in the Asia-Pacific over the past ten years, as well as the rate of growth in exports over the same period:According to the US Department of Commerce, exports to the Asia-Pacific region are up 89% since 2001. Increased bilateral economic engagement and investment has contributed to this increase, especially in the case of Vietnam where, after implementing the U.S.-Vietnam Bilateral Trade Agreement in December 2001, US exports rose the most dramatically, increasing seven-fold. Perhaps even more significant has been the growth of sales to India and China, representing the world’s largest potential domestic markets, and high-value trade partners to the US.The dynamism of the Asia-Pacific export market is made particularly clear when compared to our largest export partners in other regions. From 2001 to 2010, US exports to the European Union only grew 48%. Of our top five markets in the EU, while exports to the Netherlands and Belgium increased 80% and 89% respectively, the 19% increase of trade to the United Kingdom and 36% to France pale in comparison to the increase to our top export partners in Asia. The same can be said in the Western Hemisphere; while exports to the emerging South American economic powerhouse, Brazil, grew 123%, America’s primary trading partners, Canada and Mexico, only grew 52% and 61% respectively.As a bright spot in the most recent trade reports, the US Bureau of Economic Analysis announced recently that a $2 billion increase in exports contributed to a surprise 11% reduction of the US trade deficit in April 2011. During that period the United States enjoyed a trade surplus with Hong Kong ($2.6 billion), Singapore ($1.2 billion), and Australia ($1.1 billion) While much of the news on US trade with Asia tends to focus on the growing trade deficits with a number of Asian economies, the importance of the region as an export destination going forward is significant for both the President’s export initiative, and America’s economic recovery.
GEM has grouped these economies into three different groups based on the World Economic Forum’s (WEF) Global Competitiveness Report which identifies three stages of economic development based on GDP per capita and the share of exports comprising primary goods. Factor driven economies: This phase is dominated by subsistence agriculture and extraction businesses, with a heavy reliance on unskilled labor and natural resources. Companies in this stage compete on the basis of price and sell basic products or commodities, with their low productivity reflected in low wages. Yet as a country becomes more competitive, productivity will increase and wages will rise with advancing development. Countries will then move into the efficiency-driven stage of development. Efficiency driven economies, must begin to develop more efficient production processes and increase product quality because wages have risen and they cannot increase prices.Finally, as countries move into the innovation-driven stage, wages will have risen by so much that they are able to sustain those higher wages and the associated standard of living only if their businesses are able to compete with new and unique products. At this stage, companies must compete by producing new and different goods using the most sophisticated production processes and by innovating new ones(Source –Global Competitiveness Report 2010-11)
Doing Business Rankings - The Doing Business Project provides objective measures of business regulations and their enforcement across 183 economies and selected cities at the subnational and regional level. It launched in 2002 and looks at domestic small and medium-size companies and measures the regulations applying to them through their life cycle. The Global Entrepreneurship Monitor Reports (GEM) have completed 12 annual surveys of entrepreneurial attitudes, activities and aspirations of individuals around the world. Starting with just 10 developed countries in 1999, GEM has grown to include over 80 economies during the course of these 12 years. In 2010, over 175,000 people were surveyed in 59 economies.
The top 10 countries in the 2012 ease of doing business rankings.
China – On average in China, it takes 38 days to start a business, with 14 procedures, costing 3.5% of income per capita.Singapore – On average, it takes only 3 days to start a business in Singapore with only 3 procedures and SGD 385 (approximately $309 US Dollars).USA – On average, it takes double the days (6 days) to start a business in the United States, with 6 procedures, similar to singapore and over double the cost at $675 US Dollars to do so.Taiwan - On average in Taiwan, it takes 10 days to start a business, with 3 procedures, like Singapore, and it costs 2.5% of income per capita.Conclusion – It takes a very long time in China to start a business (38 days) compared to in Singapore where it only takes 3 days. The same can be said for the cost with China being more expensive out of the 4 nations and Singapore the cheapest. China also has far more procedures to follow in order to set-up a business with Singapore, Taiwan and the United States having a lot less.
China - It requires 33 procedures, takes 311 days, and costs 444.1% of income per capita. Singapore - It requires 11 procedures, takes 25 days, and costs 18.1% of income per capita.Taiwan - It requires 25 procedures, takes 125 days, and costs 41.9 of income per capita. USA - It requires 19 procedures, takes 40 days, and costs 12.8% of income per capita.Conclusion: It is easy to see that China is a very expensive place to start-up a business, taking a lot more time than the other 3 nations and with substantially more procedures than them too. Singapore are again the best nation with the United States not too far behind them and Taiwan quite a bit better than China but still well behind the United States.
China - It requires 4 procedures, takes 29 days, and costs 3.6% of property value to register the property in Singapore.Singapore - It requires 3 procedures, takes 5 days, and costs 2.8% of property value to register the property in Singapore.Taiwan - It requires 3 procedures, takes 5 days, and costs 6.2% of property value to register the property in Singapore.USA - It requires 4 procedures, takes 12 days, and costs 0.8% of property value to register the property in United States. Conclusion: The recurring theme is apparent so far, in that China comes up expensive again to register a property, but in this instance not as expensive as Taiwan with the United States being substantially cheaper than the other three nations. All four nations have around the same number of procedures with China taking a lot longer to have a property registered than any of the other 3 nations.
Ask Lorrie about the Getting Credit through public or private bureau’s??? That seems to be what ranks the nations. Ranked , the United States ranked the best out of these four nations, being from England that surprises me as I thought it was pretty hard to get credit here.
Not sure what else I should includeSo the US have to improve on the extent of disclosure index, meaning: What corporate body provides legally sufficient approval for the transaction? - Whether immediate disclosure of the transaction to the public and/or shareholders isrequired?- Whether disclosure of the transaction in published periodic filings (annual reports) isrequired?- Whether disclosure of the conflict of interest by Mr. James to the board of directors isrequired?Whether an external body must review the terms of the transaction before it takes place?And they can improve their strength of investor protection index (No explanation on doingbusiness website)
BIG ISSUE for USAChina - They have 7 payments, it takes up 398 hours a year, with a total tax rate of 63.5%.Singapore – They have 5 payments, it takes 84 hours per year and the total tax rate (% profit) is 27.1%.Taiwan - They have 15 payments, it takes up 245 hours a year, with a total tax rate of 35.6%.USA – They have 11 payments, it takes up 187 hours a year, with a total tax rate of 46.7%.Conclusion: Apart from Singapore, the United States, China and Taiwan have poor rankings in this discipline. They have a higher number of payments per year, they have a lot more hours involved in paying the taxes, especially China, and there total tax rate is substantially higher, again especially China’s than is Singapore's.
ANOTHER BIG ISSUE for the USAThe factor that stands out the most and definitely needs to be improved by the USA is the cost to export and the cost to import (US$ per container). It is almost if not, over double for both of these costs when comparing the USA with Singapore, China and Taiwan. On the other hand, the time it takes for the United States to export and import products is good compared to the other nations reviewed.
One attribute that the USA rank better than all the comparison nations in this presentation. Interestingly though, the time it takes to enforce contracts is still double that of Singapore, in the United States it costs slightly more than in China to enforce contracts and the number of procedures there are to enforce contracts is still 50% higher than Singapore.
Singapore and the United States both rank well again on this attribute, China once again does not (91st).
Key components and prevalent practices of highly successful businesses that experience long-term solid business performance
Road map guides the business and assesses its performance and effectivenessNot a one-time process – progress needs to be reviewed, validated and measuredRevise the strategy as needed; however, this is not the tactical “how to” which will change more frequentlyUse the resource planning map to thoroughly evaluate what, to whom and why a new product/service is being offered
Systems – financial, operational, administrativeProcesses – SOPs followed, defect minimization, product/service integrityRepeatability/Exceptional Experience – Franchise model; consistently delivering an excellent customer/vendor/employee experienceCommunications – Internal and externalInformation Assurance – data information and security (negative perception associated with compromised/breached data)
Branding – the emotional promise of an experience that is created by the image projected and value delivered Marketing – a clear strategy that directs how and where resources are invested based on the greatest opportunity for client, partner and support attractionValue-based selling – understanding your target market and the value – not simply the services and products – you ultimately deliver to them
Power Partnerships – clients, competitors and complementary providersKey relationships – Networking, memberships/partnerships, governmentMentors vs. Sponsors – having both, understanding the difference and leveraging both effectivelyProfessional Advisory Board – key experts who provide counsel, expertise and guidancePartnerships vs. Memberships – simply showing up and expecting a benefit from the organization (and potentially doing so with a larger number of organizations) vs. selectively engaging in a two-way relationship with organizations, creating mutual benefit and increasing overall impact/value.
