A new study takes a fresh look at the relationship between entrepreneurship and development.
The report entitled “Leveraging Entrepreneurial Ambition and Innovation: A Global Perspective on Entrepreneurship, Competitiveness and Development was created by the World Economic Forum, the Global Entrepreneurship Monitor (GEM) with case studies provided by Endeavor Insight. It investigates three types of entrepreneurship: early-stage entrepreneurial activity, growth-oriented entrepreneurship and innovation-based entrepreneurship.
By combining two unique data sets – the Forum’s Global Competitiveness Index and GEM’s surveys of entrepreneurial activity – the authors provide new analysis on early stage entrepreneurial activity. The six key findings from the report are summarized briefly below:
1. Entrepreneurship is not one-dimensional and includes three components – 1) starting and running one’s own new business; 2) the growth expectations of entrepreneurs, or ambitions; and 3) the innovations entrepreneurs introduce.
2. An economy’s level of competitiveness affects each of those dimensions in distinct ways. While less competitive economies exhibit greater levels of early-stage entrepreneurial activity, more competitive economies have on average more ambitious and innovative entrepreneurs.
3. Entrepreneurial preconditions and business strategies combine with competitiveness to affect the make-up of entrepreneurship in an economy. The four preconditions encompass connections with entrepreneurs, awareness of opportunities, entrepreneurial skills and a willingness to take risks, and are especially important to economies with high rates of entrepreneurial activity.
4. Development stages have a significant impact on an economy’s entrepreneurial ecosystem. Considering both stage of development and competitiveness, it is important to take into account that innovative entrepreneurs may be different in factor-, efficiency- and innovation-driven economies. The number of opportunities may differ, but also the types.
5. Entrepreneurial characteristics vary by age, gender, and education levels. In general, women exhibit equal levels of innovativeness, but lower expected-growth ambitions than men. Both innovation and growth ambitions tend to follow overall entrepreneurship age patterns and increased education levels are linked to ambitious and innovative entrepreneurship.
6. Growth ambitions, innovation, and international sales tend to be associated with each other. This emphasizing the importance of fostering all three, if the objective is to create jobs, innovative products and services, and more globally competitive businesses.
To read the full report please click here.
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