cenpromype - SICA

Nicholas RuizPresident of CENPROMYPEDirector in BelizeExecutive Director of BeltraideBelize Trade and Investment DevelopmentService Sigfrido LeeVice President of CENPROMYPEDirector in GuatemalaVice Minister of SME DevelopmentMinistry of Economy in Guatemala Roxana AbregoTreasurer of CENPROMYPEDirector in El SalvadorExecutive Director of the National Commission for the Micro and Small Enterprise (CONAMYPE)Ministry of Economy in El Salvador Giselle BurilloDirector in PanamaMinistry of the Authority of the Micro, Small and Medium Enterprise (AMPYME) Carlos Gunther LainezDirector in HondurasVice Minister of the SME and Economy SectorSecretary of Industry and Commerce (SIC) María Antonieta MachadoDirector in NicaraguaVice Minister of the Ministry of Family Economy,Communitarian and Associative Cooperative Luis AlvarezDirector in Costa RicaVice Minister of Economy, Industry and Commerce (MEIC)

Ignacio MéndezDirector in Dominican RepublicVice Minister of Promotion of the Small and Medium EnterpriseMinistry of Industry and Commerce Adriana FloresDirector in BCIEChief in the Department of Strategic Programmes and PurchasesBCIE Ingrid Figueroa SantamaríaSecretaryExecutive DirectorCENPROMYPE

BOARD OFDIRECTORS

CENPROMYPE

The future has many names. For the weak it’s the unachievable. For the scared, the unknown. For the brave it´s opportunity.

Victor Hugo

Technical Committee

DELEGATES- SICA REGION GOVERNMENTS

CENPROMYPEIngrid Figueroa SantamaríaVicente RivasCarmen Castro BlandónVerónica Martínez

International Consultants William Pérez Cotrino Miguel CabalEdgar Armando Lara

El Salvador Government Francisco LimaFederico Bermúdez

Panama GovernmentGerar Paul Belmondo José Chu

Honduras GovernmentOscar NarváezLuisa Mendieta

Nicaragua GovernmentLeyra Bucardo

Costa Rica GovernmentAndrea Arias Gómez

Colombian Presidential International Cooperation Agency (APC-Colombia) Sandra BessudoJorge Enrique Prieto CardozoClaudia Rivero Medina

Ministry of Commerce, Industry and TourismCamilo Montes PinedaSergio Zuluaga MartínezFernando DelgadoAndrés VengoecheaJuan Carlos Caro

Guatemala GovernmentAna Gabriela ChinchillaJuan Carlos Velásquez

Dominican Republic GovernmentRafaelina SánchezDiana ToribioJosé ChecoJosé Calazán González

Belize GovernmentDiana Hernández

ACRONYMS 8EXECUTIVE SUMMARY 9

1 INTRODUCTION 13

2 CONCEPTUAL FRAMEWORK 16

2.1 CONCEPTUAL HARMONIZATION Entrepreneurship and Entrepreneurship type 17 Entrepreneurship Promotion Process and Financing Chain 18

Entrepreneurship Ecosystem 21 Net Work Stages (Ecosystem) of Entrepreurship 22

2.2 THEORETICAL APPROACHES 23 The importance of Business Models in Regional Entrepreneurship 24 The importance of the Effectual Approach in

Entrepreneurship ( Saras Sarasvathy) 25 The Strategic Orchestration Approach (Ruelas- Gossi) in Entrepreneurship 25 The role of (Design Thinking) in Innovative Entrepreneurship 25 The Canvas Model for the desing of business Model 27 Product development under the lean startup approach 28 World management trends 29

2.3 GENDER PERSPECTIVE 31

BACKGROUND 32

Entrepreneurship Regional Agenda 34 Regional Cooperation Program with Mesoamerica 35

DIAGNOSIS OF THE ENTPRENEURSHIP SITUATION IN THE REGION 37 4.1 ENTREPRENEURSHIP AND COMPETITIVENESS INDICATORS 374.2 ENTREPRENEURIAL SUPPORTING SYSTEMS 46

ENTREPRENEURSHIP DEVELOPMENT STRATEGY FOR CENTRAL AMERICA AND DOMINICAN REPUBLIC 50

5.1 STRATEGIC PROPOSALS 50

5.2 STRATEGIC AXES 51

5.3 PROSPECTIVE VISIONS 52

5.4 STRATEGIC INNITIATIVES

5.4.1 SUPPORTING INDUSTRY AX 5.4.2 FINANCING AX 53

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Regional Strategyof Entrepreneurship Promotion for Central Amerca and the Dominican Republic

ÍNDICE 5.4.3 ARTICULATION AX 53

5.4.4 MENTALITY AND CULTURE AX 53

5.4.5 EDUCATIONAL SYSTEM AX 54

CONCLUSIONS AND RECOMMENDATIONS 6.1 CONCLUSIONS

6.2 RECOMMENDATIONS 61

REFERENCES 63

GLOSSARY 64

ANNEX 66

Annex 1 According to the Gobal Competitiveness Index (among 144 countries) 66

Annex 2 Easiness of Making Business in Central America

and Dominican Republic 70

Annex 3 Ranking of Main Problems (1 the hardest one and 16 the less hard one) 72

Annex 4 Main problems 73

Annex 5 Analysis of the Importance – Governance 75

Annex 6 Analysis of Motor – Dependence 78

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Regional Strategyof Entrepreneurship Promotion for Central Amerca and the Dominican Republic

AND DOMINICAN REPUBLIC

REGIONALASTRATEGYOF ENTREPRENEURSHIPPROMOTION IN CENTRAL AMERICA

MESSAGEGENERAL SECRETARY OF THE SICAHUGO MARTÍNEZ BONILLA

The Central America Integration System (SICA) has the main objective of achieving the Central Ameri-ca and Dominican Republic integration in order to make it a region of peace, liberty, democracy and development. One of the key aspects to accomplish this objective is through economic integration, espe-cifically, the promotion and fostering of the regional SMES, which become the motor of the development in our countries.

In 2011, the chiefs of State and Government of the SICA region, instructed the Regional Center for the Promotion of the Micro and Small Enterprise (CEN-PROMYPE) to elaborate and present the proposal of a Regional Strategy for the Promotion of the En-trepreneurship in Central America and Dominican Republic, as well as to start the development of the Program in Central America and Dominican Republic with the support of the Republic of China (Taiwan), to assist in the implementation of new entrepreneu-

rial initiatives in the region.

In the achievement of this important presidential mandate, CENPROMYPE in its role of regional insti-tution specialized in the SME, attached to SICA, has promoted and facilitated, together with the govern-ments of the region, the construction of the Regio-nal Strategy on Entrepreneurship, which establishes entrepreneurship as the main ax in the policies of development and growth of the countries, promo-ting entrepreneurial from an integral and articulated perspective, which recognizes that developing new ventures is a crucial task, which requires articulation and coordination with the different stakeholders in order to achieve success. It pleases us to be part of this historic and important regional initiative which represents a clear example that articulation of efforts can be translated into real instruments, such as the Regional Strategy of Entre-preneurship, directly promoting the integration of the economic motor of the region: the SMES.

We congratulate the governments, universities and the business sector in the region for their com-mitment to this initiative to promote entrepreneur-ship. We acknowledge the excellent work of CEN-PROMYPE to facilitate such a successful experience with strategic stakeholders, turning a goal into a rea-lity: SICA EMPRENDE.

MESSAGENICK RUIZPRESIDENT OF CENPROMYPE

The Regional Center for the Promotion of the Micro and Small Enterprise (CENPROMYPE) in its role of pro-moting the competitiveness of the micro and small enterprises (SMES) in the region, has accomplished the establishment of a Regional Agenda of SME Pro-motion with the consensus of the international orga-nizations, public and private sectors. This instrument focuses the fostering and promotion of entrepre-neurship as one of the six strategic axis that the SICA region is promoting as a whole. I must highlight that this regional bet has the presidential support of the Chiefs of State and Government of the countries members of the SICA.

As region, we are pleased to have identified and choo-se entrepreneurship as strategy of growth and sus-tainable development and to present our Regional Strategy of Entrepreneurship Promotion, which in-cludes our vision, our shared dream, our strategic bets, conceptual frames and common minimum to promote entrepreneurship as a region.

We now have a common vision on this subject, with an integral and innovative working philosophy whe-re entrepreneurship is known as a way of act and think, and only promoting it under this point of view we will be able to install in a sustainable way, entre-preneurship as a development strategy. This strate-gy is also part of the collective action and network, which means that the institutions that are part of the entrepreneurship ecosystem, share risks and re-sources to promote the national and regional agen-das, where all entrepreneurship are important and require a differential approach that will be possible through the coordination and articulation of the key stakeholders.

This process has been possible thanks to the com-mitment and efforts of each one of the countries that has shared this dream of promoting and fostering en-trepreneurship as a motor for the development and growth of the region. It is important to acknowledge the fundamental role of our stakeholders, the Presi-dential Agency of International Cooperation of Co-lombia (APC-Colombia) and the Ministry of Industry, Commerce and Tourism of Colombia (MINCIT), who have accompany and gave us advisory in the process of co-building from the good practice of the Govern-ment of Colombia, in the promotion of entrepreneur-ship in the last 12 years.

AND DOMINICAN REPUBLIC

REGIONALSTRATEGYOF ENTREPRENEURSHIPPROMOTION IN CENTRAL AMERICA

APC- Colombia

MSMSE

MCIT

SICA

FECAMCO

FOMIN

GEM

AUSAID

BCIE

IBD

Colombian Presidential International Cooperation Agency

SICA EMPRENDESTRATEGYRegional Strategy of Entrepreneur-ship Promotion for Central America and the Dominican Republic

KfWGerman Development Bank

Micro, Small and Medium Size Enterprise

Colombian Ministry of Commerce, Industry and Tourism

Central American Integra-tion System

Central American Federation of Chambers of Commerce

Multilateral Investment Fund

Global Entrepreneurship Monitor

I+D

IBM

Investigation and Develo-pment

Institute for Business Value

Australian Agency for International Development

Central American Bank of Economical Integration

Interamerican Bank of De-velopment

CAF

COMMCA

CENPROMYPE

Latin American Develop-ment Bank

Council of Women Ministers in Central America

Micro and Small Enterprise Promotion Center in Central America

ACRONYMS

ExecutiveSummary

About theActors

Taking into account the Presidential mandate in December 2011, in which the State Chiefs and Governments from the SICA region agreed: “To train the Micro and Small Enterprise Promotion Center in Central America (CENPROMYPE) to present a proposal of Regional Strategy for Entrepreneurship Promotion in Central America and the Dominican Republic in our XXXIX Ordinary Meeting, and to start the execution of the “EMPRENDE” program of Central America and the Dominican Republic to contribute to the implementation of new entrepreneurial initiatives in the region.”

In this context, the Board of Directors of CENPROMYPE –regional institute subscribed to SICA- during 2012, started the search of good practices in the Latin American region in order to establish a partnership that contribute to the Entrepreneurship Promotion to support investments in MSME in the region finding a direct match with the Government of the Repu-blic of Colombia, which since 2010 has been executing the Regional Cooperation Program with Mesoamerica. This program includes seven strategic components identified for the re-gion: Social promotion, Quality Management, Public Services, Local Governability, Security, Support to the Micro, Small and Medium Size Enterprise and Biofuel.

Thus, a strategic alliance was made through the subscription of a Memorandum of Unders-tanding between Colombia (Colombian Presidential International Cooperation Agency, APC – COLOMBIA and the Ministry of Commerce, Industry and Tourism – MCIT) and CEN-PROMYPE, in San Salvador, on August 10, 2011. This alliance is framed in the execution of the Regional Cooperation Program with Mesomerica in its phase III of project-type actions.

This partnership has allowed the development of a work route drawn by both entities and governments to reach the Regional Strategy in a short term period, with a series of regional workshops during 2012, with the participation of MSME Development Service Directors,

Technical Consultants at a MSME Vice ministry level, Technical Staff in charge of the Development agenda, and even the Exe-cutive Directors of the Leading institutions of the MSME. With this strong team and the expert consultation of the Ministry of Commerce, as an inedited fact in the region, the first Regional Strategy for Entrepreneurship Promotion for Central America and the Dominican Republic (SICA EMPRENDE STRATEGY) has been created.

About the Strategy

The SICA EMPRENDE STRATEGY has been created for a 5- year pe-riod (2012-2017) taking into account five strategic axis that allow to have ideal ecosystem to set the foundations for an Integral Entre-preneurship Promotion in the region:

SICA EMPRENDE STRATEGY

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• Support Industry,• Financing • Institutional Articulation,• Mindset and Culture, and• Educational System

The Regional Strategy of Development is a consen-sus space, uniting wills, where the countries have de-fined the action emphasis, and have drawn the path to start collective initiatives to promote entrepre-neurship in an effective way. This exercise was built ensuring position, coherence, and ownership by the participating countries.

The SICA EMPRENDE STRATEGY was born from the need to develop an entrepreneurial culture from a regional, integral and inter-institutional point of view, to harmonize the engagement in the region, and promote the entrepreneurship process in all its stages in a continuous way, under the approach of efforts articulation in the region. With the final pur-pose of renovating the Central American entrepre-neurial park and adapting it to the requirements of a current highly competitive international context, but also filled with new opportunities to generate wealth and promote integration to the region.

The Strategic Agenda comes from the premise that “every entrepreneuship matters”, for which it was ne-cessary to develop a conceptual coordination where countries in the region unified the language in the definitions of basic entrepreneurship to gain conver-gences in a conceptual framework which allows the region to start actions from a common point of view. One of the main definitions addressed was ENTRE-

PRENEURSHIP, understanding it as: “A way of thinking and acting oriented to the creation of wealth to take advantage of opportunities in the environment or to satisfy the needs of personal income creating value to the economy and society”.

Also, the international reference framework of the Global Entrepreneurship Monitor (GEM), is used es-tablishing two main entrepreneurship types: (i) For necessity and (ii) For opportunity.

Another of the basic consensus generated for the elaboration of this Strategy involves the phases of the entrepreneurship promotion process, the finan-cing chain needed to support the entrepreneurial initiatives, and one of the main elements in which this document is based: the concept and dynamics of the entrepreneurial ecosystem. This last aspect establishes a facilitating role of the Governments, ai-ming to articulate the efforts with all the entities on a national and/or regional level, public or private, to create networks that allow to approach the services to entrepreneurs and generate the right business en-vironment so that the new MSMSE enterprises can be born, developed, and established in the region.

The creation of this Strategy is justified through one of the main challenges that are presented to encou-rage entrepreneurship at a regional level: there are important deficiencies in the generation of entrepre-neurial capacities in the different educational system levels and better public particular policies are requi-red to encourage the creation and growth of new enterprises and specifically the creation of non credit instruments to support the financing of these entre-

preneurships.

The experts’ judgments are the same in the countries of the region, that there is an important deficit on the generation of entrepreneurial capacity in all the edu-cational system levels, also in the generation of go-vernmental policies that encourage the creation and growth of new enterprises, and on the availability of appropriate financial instruments. Also, it has to be taken into account that the new socio economic le-vels of the population differed by specific groups, as well as as in a territorial areas are diverse, which im-plies that the policies must emphasize their actions in the mentioned groups to develop their productive potential in the market, and to contribute in a better way to the socioeconomic development.

The estimations made about the entrepreneurship stock with potential for growth show that the pro-portion is still low and the absence of a support net-work of technical, financial and market requirements translates into a small number of enterprises that can actually reach their potential.

From this challenge, the countries built up a shared dream or vision, establishing that in 2017: “… the region will have an entrepreneurial and innovation culture and identity, through a strengthened ecosys-tem, high commitment and ownership, through new financial instruments and support platforms”.


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SUPPORT

Support industry strengthened with new services of added value, sustained within a political and nor-mative favorable and forefront fra-mework.

INSTITUTIONAL

National entrepreneurship ecosys-tems articulated in an effective and strategic way creating institutional collaboration spaces, interdepen-dency, cooperation and group ac-tion.

MINDSET

Appropriate entrepreneurial culture and mindset for the citizens to re-cognize and promote the importan-ce of developing entrepreneurship.

FINANCINGDiversified and available financing sources to support entrepreneurship and support institutions.

INDUSTRY ARTICULATION

AND CULTURE

EDUCATIONALEducational system articulated fo-rentrepreneurial and innovation functions with new curricular con-tents, tools and technologies.

SYSTEM

For each of the strategic axis of the En-trepreneurship Regional Agenda, a stra-tegic vision that allows to set the ap-proach towards which the efforts of the region will be guided has been built:

SICA EMPRENDE STRATEGY’s mission is constituted as: “strengthen the national ecosystems of entrepreneurship and their interaction through innovation in financial instruments, culture positioning, differential approach and technological tools”.


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Finally one of the structural and fundamental axes for Entrepreneurship Promo-tion, the educational system, it is planned to:

Develop technological and methodological tools of creativity and innovation for entrepreneurship that strengthen the regional educational system.

Influence in the educational system with curricular contents of innovation and entrepreneurship.

The countries of the SICA region established that the CENPROMYPE would be in charge of the coordination of the execution of the Regional Strategy for Entrepre-neurship Promotion because of its institutional proficiency for the coordination of efforts between the governments of countries, and also as the coordinating entity that promotes the economical integration through the promotion of the compe-tion among the MSMSE.

To perform this role, the CENPROMYPE will use a current intervention model re-taking its role of regional facilitator, acting only through the national facilitating entities that are the Leading units of the MSMES in each country of the region, getting through the final beneficiaries; this means entrepreneurs of each country.

The CENPROMYPE and countries of the SICA region will make the necessary efforts to encourage the management of the funds to support the implementation of the Regional Strategy of Entrepreneurship Promotion among the regional financial or-ganisms and regional integration organizations.

The strategic initiatives that allow achieving these perspectives for the Suppor-ting Industry, are the following:

To develop a reference framework that contains the recommendations to make a political and normative model that suits the needs of the region.

To design and implement a Promotion plan for opportunity entrepreneurship with a sectorial pilot, strengthening the support industry with a differential approach.

For the Financing axis:

To define and start the operation of a regional financing mechanism for the promotion and strengthening of institutional entrepreneurship.

To implement permanent processes of financial instruments of innovation with a differential approach aimed to entrepreneurs.

To promote the synergy between public and private institutions it is esta-blished to:

Articulate the “Entrepreneurship Regional Strategic Network” for the positioning of entrepreneurship in the public and private agenda and transference of knowledge.

Develop a platform in the “Cloud” 1 that allows to provide intraregional entrepreneurship services.

With the objective of promoting a mindset and culture aimed to innovation and entrepreneurship through the training of the specialized human capacity and the brand of regional entrepreneurship, the following has been program-med:

To design and develop a regional training program mainly aimed to consultants and professors of innovative entrepreneurship.

To create and positionate a regional entrepreneurship identity for the permanent promotion and development of mindset and culture.

1The computing cloud is a paradigm that allows offe-ring computing services through the Internet.


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Introduction1.

The Regional Strategy of Entrepreneurship Promo-tion for Central America and the Dominican Republic (SICA EMPRENDE STRATEGY) was born from the ne-cessity to promote an entrepreneurial culture from a regional, integral and inter-institutional approach to coordinate the region engagement and to promote the entrepreneurship process in a continuous way in all of its stages, under an articulation approach of efforts in the region.

This initiative comes from the empty spaces identi-fied mainly by regional exercises of diagnosis deve-loped by entities such as the Central American Bank of Economical Integration (BCIE) in coordination with the German Development Bank (KFW), the Micro and Small Enterprise Promotion Center in Central Ameri-ca (CENPROMYPE): Entrepreneurial Situation in Central America Diagnosis (2010); the diagnosis What Central America can do so that Dynamic En-trepreneurship supports its (New) Growth, made by P3 Ventures in coordination with the Central Ame-rican Federation of Chambers of Commerce (FECA-MCO ) and the Latin American Development Bank

(LADB); and the exercise Canvas for Ecosystems co-constructed with countries of the region under the team facilitation of the Colombian Ministry of Com-merce, Industry and Tourism (MCIT).

On this line, the Entrepreneurship Promotion is a key topic for Central America and the Dominican Repu-blic. Their growing interest is centered in the neces-sity to create more and better jobs, better distribu-tion of income, rejuvenation of the productive fabric in the countries and creation of a new social wealth that contributes to the regional development.

The entrepreneurial process in this Strategy is un-derstood as an ecosystem in which different actors, activities and programs are articulated to promote, support, and strengthen entrepreneurs in the diffe-rent stages of the entrepreneurial process.

The entrepreneurship process is visualized not only from the new ideas that turn into entrepreneurial projects, but also in all the path of Entrepreneurship Promotion. The region is interested in the existence of enterprises and in their being updated in the mar-ket to impact the development and growth wanted. This leads to the understanding of the process of Entrepreneurship Promotion from a permanent evo-lution that involves three stages: 1) entrepreneurial culture promotion 2) entrepreneurial management; 3) entrepreneurial consolidation.

To analyze this problem, it is important to point out that the regional public policies have traditionally been focused in only one of these stages in most of the countries: entrepreneurship consolidation, un-derstood as MSMSE Policies.

And it is from this challenge that it is visualized the importance of building a Regional Strategy that provides the region with a coordinated agenda that promotes the entrepreneurship process in the region from an integral vision, provides it with tools/instru-ments so that more enterprises get to the consolida-tion stage and can be implemented under an inter-institutional articulation philosophy : construction of networks and/or ecosystems where entities from the private and public sector can relate and conso-lidate public-private alliances that secure the action towards the aimed population: entrepreneurs and MSMSE in their first development stages.

The creation of this Regional Strategy, counted with the participation and commitment of eight (8) coun-tries: Honduras, Guatemala, El Salvador, Belize, Nica-ragua, The Dominican Republic, Panama and Costa Rica, countries with which it was built collectively with the expert assistance (technical and methodo-logical) of the Government of Colombia through the Colombian Presidential International Cooperation Agency (APC) and the MCIT.

The design of the Regional Strategic Agenda of En-trepreneurship was made through a prospective-strategic approach taking into account the situation of the region, its role in the global context, and re-view worldwide, sectorial, and business tendencies. On this approaches were included additional ele-ments that enrich the design of the agenda securing the appropriateness of the proposal based on world-wide challenges of entrepreneurship.

In summary, the orientation used came from a stra-

2From this point forward SICA Region.


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tegic analysis of the entrepreneurship diagnosis of each one of the countries, to establish consensual strategic axis in regional workshops using prospective tools, ending with the construction of a concrete action plan. The instruments used in this process are listed below:

CANVAS RAINFOREST Ecosystem Diagnosis, Conceptual Coordination of Entrepreneurship, PROSPECTIVE methodology from which the following analysis were executed:

Trends and Interview Prospective Analysis, Gap Identification (New Challen- ges), Strategic Agenda Creation (axis and strategic initiatives),

Movement Analysis + Governability + Morphologic (prospective scenarios) and

Creation of a Shared Vision and Preliminary Action Plan to implement the ERE- CARD.

This shows that the Regional Strategy of Entrepreneurship constitutes a space of consensus that unites wills where the countries defined the action focus and draw the path to start group initiatives to promote entrepreneurship in an effec-tive way. This exercise was built securing the relevance, coherence and owners-hip by the participant countries, recognizing that “all entrepreneurship matters” and securing a “differential approach” in public policies that are design based on this joint exercise.

With this effort the first phase of accompaniment and sensitization of the region in the creation process of the Regional Strategy of Entrepreneurship Promotion is addressed, and it sets the foundations for the development of Policies and/or National Strategies of Entrepreneurship Promotion coherent and consistent with the strategic lines captured in the SICA EMPRENDE STRATEGY.

The document of the Regional Strategy is structured based on the scheme deve-loped below:

Chapter I establish backgrounds and contexts in which this strategic agenda of entrepreneurship Development is framed.

Chapter II structures the diagnosis of the status of entrepreneurship from a syste-

matic approach and coming from the current institutionalism in the region that is now working in the Promotion of Entrepreneurship.

Chapter III develops general provitions of the strategy including the conceptual coordination and basic theorical approaches used in its creation.

Chapter IV addresses the objectives and strategic axes of the Strategy and a first structured work plan for its implementation using the structure of the logical framework for that objective.

The Final Chapter (V) includes structured conclusions and recommendations to ensure an effective implementation of the agenda.


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and Approaches

2. Conceptualframework,Principles

“If you believe in what you have always belie-ved, then you will always think in what you have always thought, you will always act as you have always acted, and you will always get what you have always gotten. Change your beliefs and you’ll change your thinking. Change your thinking and you’ll change your re-sults”.

Linda Ferguson

Figure No.1

SICA EMPRENDE STRATEGY: Entrepreneurship Types

Source: Self made

2.1 ConceptualCoordination

Entrepreneurship and Types

Having as a premise that “all entrepreneurship matters”, it became necessary to develop a conceptual coordination process where the participant countries unify languages in the basic definitions of entrepreneurship to facilitate conver-gences in the conceptual framework that allows the region to start actions from a common point of view.

First of all, the definition of ENTREPRENEURSHIP for the countries of the region was addressed, being: “A way of thinking and acting oriented to the creation of wealth to take advantage of the opportunities present in the environment or to satisfy the needs of personal income creating value to the economy and society”.

For this, it refers to the international reference framework of the Global Entrepre-neurship Monitor (GEM) that created two main entrepreneurship types: 1. Out of necessity, 2.Out of opportunity.

At the same time, it was necessary to integrate concepts proposed by the Inte-ramerican Development Bank (IDB), the Multilateral Investments Fund (FOMIN), and other recognized institutions in the Entrepreneurial Promotion at an interna-tional level, in one definition and measurement system, including adjustments to the reality of the region. The following figure establishes the entrepreneurship types considering the2 basic definitions:

Out of Necessity

Subsistence Traditional Dynamic High Impact

Out of Opportunity


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Entrepreneurship out of necessity

The Entrepreneurial action started by people that at the moment of making the decision to start an economical activity were motivated by the lack of income to their subsistance (or for the desire to obtain an additional income source). This category is divided into two types:

Other of the aspects agreed among the countries is related to the phases of the entrepreneurship process, as well as the financing chain that accompanies these stages. Below, figure No. 2 shows a scheme related to both elements:

Subsistence Entrepreneurship: Entrepreneurial actions aimed to create daily incomes to live (self-employment), without any plannification or structured growth vision in the market and that tends to be non profitable. It usually develops on the informal sector of the economy and by poor population (mostly women), with no opportuni-ty of education and financing to develop such entrepreneurial actions.

Traditional Entrepreneurship: Entrepreneurial ac-tions aimed to generate income that count with an organizational structure and that use technical knowledge to generate profits that can be accumulated. They tent to develop their activity formally in markets and traditional sectors of the economy without differential elements in their products and services.

Entrepreneurship out of Opportunity

Entrepreneurial action initiated by people that at the moment of ma-king the decision of starting an economical activity were motivated by the identification of a market opportunity. This category is divided in two types:

Dynamic entrepreneurship: Entrepreneurial actions with high growth potential where the use of knowledge, technology management and human capacity, the potential to access financing/investment resources and a corporative government structure* allows creating a competitive advantage and the differentiation of their pro-ducts and services.

*Good managerial practices

High Impact Entrepreneurship: Enterprises with the ca-pacity to transform and dynamize the economy through systematic processes of innovation and employment generation. It is an Enter-prise that grows fast and steadily, because it counts on high levels of financing or investors.

a)

b)

i)

i)

ii)

ii)

Entrepreneurship PromotionProcess and Financing Chain


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Figure No.2

SICA EMPRENDE STRATEGY: Entrepreneurship Promotion Process and Financing Chain

AccelerationLaunchingFormulationIdentificationSensitization

Personal Savings, Family and Friends

Trends

Pre-Seed Capital Seed Capital Risk Capital

Private Capital

Capital Market

Traditional Financial Services

Investor Angels

a) Sensitization:

This stage considers the promotion through different activities to encourage the culture of innovation, en-trepreneurial mindset (paradigm transformation); for those, managerial skills and creative capacities are developed. This stage aims to bring awareness to people that see the value and importance of entre-preneurship and motivate them to actions, influen-cing their life projects.

b) Identification:

This stage identifies and recognizes opportunities, problems or necessities of the market through ob-

Source: Self made

servation techniques, research, ethnography, cool hunting, technological and industrial prospective studies, expired patents, cluster analysis, design thinking, among other techniques, for later design of a business ba-sic idea focused in the differentiation of the offer from the competence, defining a clear and concrete value proposal, designing sketches of factible products, and building prototypes of products and/or services, a functional prototype or minimum viable product develops in a fast and economical way (Lean Startup), es-tablishing the level of maturity of the entrepreneurial initiative and its position within the environment, iden-tifying the Core Competences of the work team. This is the first exploration step of an entrepreneur around a business idea where hypothesis (or assumptions) regarding the needs of the client are validated, about the consumption context and about the business model to be implemented.


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c) Formulation: This stage promotes the level of maturity of the en-trepreneurial initiative through the design of the differential business model, commercial version of industrial prototypes services and laboratories to be validated with tests of product concepts, in which it is compared in real terms if the product or prototyped service complies with the necessities of the clients and the definition of a business model (income sources, key processes, distribution chan-nels, strategic alliances, relation with the clients, key resources, expenditures), getting at the same time technical support with mentoring process for the design of a strategy and the long term business vi-sion (Coaching) preparing entrepreneurs for resou-rce management of seed capital (elevator pitch), ar-ticulating with contact networks (Networking), and networks of collaboration with other entrepreneurs (Co-working). In this stage it is more important the focussing of actions towards a differential design of the business model than the formulation of a busi-ness plan (reduced productive life).

d) The Launching:

The start of the operation in the market, developing commercial management processes, is the stage that validates and does permanent adjustments to ensure the innovation of the business model ba-sed on the information obtained from the market, strategies are designed and Board of Directors or consultant councils are formed, processes and the enterprise procedures are defined, suppliers, allied and specialized consultants in managerial, financial, technical and commercial areas are managed to look

for the creation of cash flow that allows to keep the operation of the enterprise running. In this stage it is necessary that the business plan lands through tools such as the Balance Score Card.

e) Acceleration:

Maximization of the added value of the company through the internationalization and innovation, aiming efforts to the consolidation of a sustained growth of the Enterprise, through the search for stra-tegic partners, capital attraction (mentoring training to manage resources of private capital funds) and the search for new clients through international con-tact network (Diaspora). The acceleration of enterpri-ses comprises the increase in the speed of execution and consecution of results in the directive, commer-cial, administrative, financial, technological and hu-man resource management of an Enterprise, aligned in a series of objectives and business strategies in a specific period of time, implementing improvements in productivity, competition, quality, logistic, com-mercial expansion, among others.

The main concepts of the financing chain in the Entrepreneurial Promotion are included below:

a) Personal and Pre- Seed Capital

Those are resources that are used for Entrepreneurial Promotion and that are mainly use for market stu-dies, prototype development, and intellectual pro-perty. This type of capital is normally obtained from perso-nal savings, friends and family loans. However, public and private entities refundable and non refundable

resources may exist for this purpose, which must be strengthened because a great amount of the captive population to develop entrepreneurial action of sub-sistence are in charge of women.

b) Seed Capital

It has the purpose of launching the product, start operations, design the business model, techni-cal consulting, formulation of the business plan, coaching and mentoring. It can be encouraged from the public and/or private sectors.

c) Development Capital

These are resources for development, growth and expansion of the Enterprise that allows them to le-ver up: traditional financial services (credits, facto-ring, leasing) Suppliers, etc.; Risk Capital: Investor Angels, Risk capital funds, etc.; and as the public sector encourages them: Development Bank, Gua-rantee National Fund, among others.

d) Consolidation Capital

It is about consolidation and expansion resources of the Enterprise, including: more specialized financial services, Private Capital Funds, Value Market, etc.


20

EntrepreneurshipEcosystem

To develop entrepreneurship is clearly a complex task that requires the articulation and coordination of a lot of actors to be carried out in a successful way. This coordination of actors with the objective of develo-ping entrepreneurship in a country or region particu-larly is what we named “Entrepreneurship Ecosys-tem”.

It is understood by Entrepreneurship Ecosystem as a “business community, supported by a public con-text of laws and business practices formed by a base of organizations and interacting people that produce or associate business ideas, skills, financial and non fi-nancial resources that turns into dynamic enterprises”.

According to the Babson Entrepreneurship Ecosystem Project, there are thirteen components in the entre-preneurship ecosystem (see Figure 3 for more details): leadership, government, culture, successful cases, hu-man capital, financial capital, entrepreneurial orga-nizations, education, infrastructure, clusters, people network, support services and clients.

3 Learning Guide about Dynamic Entrepreneurship, IDB/FOMIN 2008.


21

Figure No.3SICA EMPRENDE STRATEGY: Entrepreneurial Ecosystem Components

ENTREPRENEURSHIP

POLITICS

FINANCES

CULTURE

SUPPORT

HUMANCAPITAL

FIRST CLIENTS

LEADERSHIPGOVERNMENT

NETWORKS

INFRAESTRUCTURE PROFESSIONAL SUPPORT

NGO

- First adoptants for the conecpt test- Products- Custumer references - First check outs- Distribution channels

- Unequivocal Support- Social Legistmacy- Open door for defence- Entrepreneurial strategy - Urgency, crisis and change

- Institutions i.e .: Investments, support- Financial support i.e.: I+D, Seed Capital - Incentives regulation Framework i.e.: Fiscal benefits- Research institutions- Friendly Law to entrepreneur i.e.: entrepri-ses closure, contracts, property rights and manpower

- Microcredits- Investment Angeles friends, family- Risk Capital for Stage-zero- Risk Capital Funds- Private Capital- Public Capital Market- Credit

- Visible Sucess- Richness creation for founders- International reputation

- Risk, mistakes and failure tolerance- Innovation, creativity and experimentation- Social Stratum for entrepreneurs- Richness creation- Ambition

Mapping and identication ( on an institutional and personal level) of very actor, products or services offredin the Region.

Establishment Of permanent communication processes and ma-nagement of knowledge among the involved actors (Nat-Reg)

Cordination of programas, initiatives and policies developed on a local level to decrease effirts duplicity and contradictions in the offer.

Articulation of programs, initia-tives and policies developed on a local level to increase impact and transaction cost distribution.

Integration of progrmas, initia-tives and polices developed as a system (with unity) to the need of the region.

- Entrepreneurs network- Diaspora network- Multinational Corporations

- Expert and non qualified- Serial entrepreneurs- Generational Succession

- Different Levels (professional and academic)- Specific training for entrepre-neurship

- Telecommunications- Logistic & Transportation- Energy- Zones, Support centers, cluster

- Expert Advising

- Non profitable entrepreneurial encouragement- Business plan competencies- Conferences- Firiendly Associations with the entrepreneurs

FINANCIAL CAPITAL

SUCCESS STORIES

SOCIAL NORMS

MANPOWER

EDUCATIONAL INSTITUTIONS

Source: Babson Entrepreneurship Ecosystem Project Source: Self made

Identification

Colaboration

Comunication

Cooperation

Action Group

Network Stages (Ecosystem) of Entrepre-neurshipFinally, the stages of the articulation process on a national and regional level that must be encouraged from the en-trepreneurship ecosystem point of view explained above,

Figure No.4

SICA EMPRENDE STRATEGY: Networking Stages (ecosystem) of

entrepreneurship

MARKET

a) Identification: Mapping and identification (on an institutional and personal level) of all the actors, products and services offered in the region.

b) Communication: The establishment of permanent processes of communication and knowledge management between the actors involved (Nat-Reg).

c) Collaboration: Coordination of programs, initiatives and policies developed at a local level to decrease effort duplicity and contradictions on the offers.

d) Cooperation: Articulation of programs, initiatives and policies developed on a local level to increase the impact and distribute transaction costs.

e) Group Action: Integration of programs, initiatives and policies developed on a local level to respond as a system (with unity) to the needs of the region.

The Competitiveness TriangleEntrepreneurship, innovation and specialized human assets form the three vertex of the Com-petitiveness Triangle, a triad of interrelations with factors that reinforce each other and that allow the regions that posses them achieve high productivity levels and sustainable prosperity.

Figure No. 5

Competitiveness Fundation

Source: Monitor Company – Path to Prosperity

APPROACHES2.2

INNOVATION

ENTREPRENEURSHIP

SPECIALIAZEDHUMAN TALENT

According to the triangle exposed by the Monitor Company, Entrepreneurship or entrepreneurial initiative are related to the creation of new enterprises from the identification of business opportunities, the market needs or support gaps in producti-ve chains with which from the union of capacities, knowledge, competence and talent, a differential value is configured com-peting in the market based on the generation of added value.

Innovation in this context means the successful commercializa-tion of new ideas. It is different from invention, that develops new ideas, but not necessarily to a market, and it extends be-yond the products and services to include changes in business models and processes.

Specialized Human Talent. Specialized human talent are those people with a specific education whose skills and characteristics allow them to succeed within the organizations making them more competitive.

These three factors are especially im-portant for the advanced economies, economies based in knowledge, that are equally showing to be crucial for the development of countries that crea-te the biggest production of property values and services. As shown in Figure No. 5, entrepreneur-ship is a fundamental factor of compe-titiveness and economic development generating bigger value and producti-vity creating a system that reinforces in the specialized human talent and inno-vation.

THEORETICAL


23

In the last years, research efforts have been made to show the importance and impact of the innovation of business models within the organizations. One of them is the study made by Navi Radjou in 2006 “The Transformation of Innovation and Develop-ment Culture (I+D) – The Executive Directors must act to open new profitable business models”, where it is showed that to be outstanding in the current global economy, the enterprises must transform their I+D culture, not only the technical innovations, products and services, but also the business model, because those present great advantages, such as increasing the complexity level in the imitation by other competitors.

In the same way, the Institute for Business Value4

IBM, in the last years has made studies with diffe-rent Executive Directors on a worldwide level to analyze their future priorities and to know where their strategies will be directed. In their last study

in 2010, with a sample of 1,500 surveyed Executi-ve Directors, the necessity to innovate the business model was confirmed. However, at the same time it showed that currently there are difficulties to find creative leadership needed to produce this type of innovation. In the same way, a tendency for the Exe-cutive Directors to increase deeper changes in their business model to start their strategies is shown.

Finally, in this study, a big part of the entrepreneurs expressed that to manage or eliminate the comple-xity within the company, the design of new business models based on completely different assumption must be encouraged.

In another study made by the Institute for Business Value IBM called “Dare to be different”, in 2006, three types of innovation where examined: 1) mar-ket, products and services innovation, 2) operatio-nal innovation, and 3) business model innovations. It was discovered that no matter what type of indus-try it was, the business model innovation had the higher correlation with the growth of the operative margin, than the other two types of innovation.

Other authors such as Christoph Zott from the IESE

The importanceof Business

RegionalModels in

4 http://www-935.ibm.com/services/us/gbs/thoughtlea-dership/

Business School of the “University of Navarra”, and Raphael Amit, from the Wharton School University of Pennsylvania, made a study called “Business Mo-del Innovation: creating value in times of change”, where they discovered that making more innovati-ve business models is the key to the everlasting suc-cess of any company. Also, they show that models radically innovative can change the destiny of an Enterprise in a notoriously favorable way, up to the point of completely changing industries.

In the article, they made emphasis in the business model innovation as a way for the general director and entrepreneurs to create new incomes and keep the margins, specifically in times of economical change.

In 2007, researchers from the American firm “In-nosight”, Scott D. Anthony, Mark Johnson and Joe Sinfield, developed an article where they found evi-dence of the importance and impact of the business model innovation; this has been recognized by first level managers in the studied organizations, who have understood that currently the product innova-tion only is not enough to keep a competitiveness level.

Entrepreneurship


24

ces available (capital, time, entrepreneur’s skills, knowledge and contacts, care chain) to explore the diversity of the goals that can be achieved.

The effectual approach is adequate for that entrepreneurship that represents a high uncertainty, because the higher the knowledge of the variables of the business from experimentation, the easy keys that will give shape to the pro-ject through individual action will be discovered. In synthesis, the effectual ap-proach can be summarized in three principles:

1.

2.

The business plan approach was born from the “cause” assumption that su-ggests that the success of a business depends on the projections, market stu-dies, and previous plannification. However, practice shows that businesses are changeable and are immersed in a dynamic environment shortening the validity period of the plan and turning obsolete the detailed business plan in a really short period of time.

In contrast, Sarasvathy created the effectual reasoning or effectual approach that comes from the principle that the success of a business depended enti-rely on the experimentation (Try and error), validating continuously the infor-mation with clients, suppliers, channels and allied, adjusting through the ite-ration of the business model up until the efforts crystallize in a concrete result. One of the biggest advantages of the entrepreneurs that apply this way of thinking as a foundation to make decisions is saving unnecessary costs from the business ideas that do not respond to the needs of the market, quickly throwing away ideas that do not work.

Because of what was exposed before, it is necessary that the entrepreneurs mix a cause approach with the effectual approach. The first one consists in starting from predetermined objects to choose the necessary resources to achieve them. On the other hand, the effect approach comes from the resour-

The importanceEffectual Approachin Entrepreneurship

Affordable loss principle: This principle explains that before inves-ting resources, time and money on rigorous market studies, selecting a more profitable market niche, the entrepreneur must focus the efforts in the market that implies the minimum expenditure of resources. This means that this principle expects that the entrepreneur gains the first client in the immediate (geographic, social network, professional specia-lization area, etc.) even if the product is still a prototype or is not finished yet.

Strategic alliances Principle: According to this principle, instead of making a gross and systematic analysis of the competency, the entre-preneur must focus the actions towards the consolidation of alliances, es-pecially if those alliances may turn into potential clients, which must get better care and a better understanding of their needs. The consolidation of pre-agreements and commitments to the allies reduce uncertainty in the first stages of the business.

of the


25

(Saras Sarasvathy)

3. Contingencies Leverage Principle: This principle can be sum-marized in the capacity to turn what is unexpected into profits, this means, in the ability that entrepreneurs have to see opportunities in adverse and unexpected situations (also known as black swans). Most successful entrepreneurs are a result of unpredictable contingencies (ruptures), which made them change the structure, culture, competen-ce core, and business model to respond to the new challenges, which constitute the main difference with the “thinking or effectual approach” that, avoids surprises, seeing and interpreting these unexpected events not as negative situations, but as growth opportunities.

The Strategic

The role of

Orchestration

Approach (Ruela-Gossi)

Design Thinking

Entrepreneurship

in Entrepreneurship

in innovative

The Strategic Orchestation approach was born from a different group of as-sumptions from the efficiency model that the value chain exposes. This new approach comes from the principle that limited opportunities exist to create a new value from the new combination of resources (machinery, distribution network, experiences, technology, brand, etc.) that satisfy a necessity that has not been supplied to the clients.

This approach does not speak of clients or suppliers, but of nodes in a dynamic network, the entrepreneur being the orchestrator who identifies the opportu-nity, gathering and coordinating the other nodes in new ways to create value satisfying the new demands of the clients.

The strategic orchestration assumes that there are unlimited opportunities to create value and their leverage depends on the capacity to articulate nodes and cooperation that generates among them, sharing benefits between all of them.

Design Thinking (DT) is an analysis process, problem solving, re-inno-vation process development, that uses creativity as a core element. According to Tim Brown, one of the greatest theorists of DT, “design thinking can be described as a discipline that uses sensibility and the designers’ method to give an answer to the necessities of people with which is technologically possible and a viable business strategy that can be turned into added value for customers and in a market oppor-tunity5” .

Evidently, the fact of using a methodology that seeks innovative and creative ideas does not means that it goes far from utility and the be-nefit of the market, its iterative and constantly adaptable methodo-logy allows to adequate the innovation to the benefit of the actors.

This shows the Design Thinking is born with the observation, which is used to discover, describe and inspire, coming from the understan-ding of the market reality with a multidimensional perspective. For this, qualitative methods of research, such as commercial ethnogra-phy6, which provide relevant and true information for the solution designers, are used. A fundamental mantra of the Design Thinking in this sense is: “if you want to get to know the water do not ask the fish”.

5 About Design Thinking, Innovation and other strange ideas.By Juan Sobejano. Articles and ideas gathering related to innovation and disruptive processes.

6 The ethnography is a research method that consists in observing the practices of a human group and participates in them to compare what people say and do.


26

Design thinking uses narration to express information gathered in the field to the creative team, using techniques such as the story board. This means, that we require the role of a story teller8 .

Then, it starts an ideation process that generally applies the brain storming te-chnique which allows dreaming new possibilities to solve problems. Inventive thinking or systematic inventive thinking provides conceptual elements to de-velop this creative stage easily.

At last, the elaboration of drafts and prototypes is started, developing an ex-perimentation process to create alternative ideas and carry them out. For this stage, it is required the role of an experimenter9.

In short, Design Thinking is maybe the most powerful tool with which current enterprises count on to innovate.

According to Alexander Osterwalder “A business model is a conceptual tool that through a group of elements and their relation allows to express the logic from which the company tries to make money by creating and offering value to one or various segments of clients, the architecture of the firm, its allied net-work to create, market, and deliver this value and the relation capital to create profitable and sustainable income sources”.

Traditional market research methods provide information of the client knowled-ge, with a hint of bias and value judgment, with the fear of being completely honest in their answers to keep the limits of right and moral. Many times, clients do not have their needs and new requirements completely clear, which limits the research for innovation. As Henry Ford used to say, “If I would have asked people what they wanted, I would have built a faster horse”.

According to Tom Kelley, this observation process requires the development of an aptitude represented by the role of an anthropologist7 that requires seeing with new eyes what normally would not be seen, to discover and understand human behavior, detailing how they interact with the products, services and spaces. This interaction must include those domestic spaces and care spaces that allows of the domestic work force.

The Canvas Model for the design of

business models

7 Kelley Tom y Littman Jonathan. The Ten Faces of Innovation8 Ibid9 Ibid.

Production

Investi-gation

Sketch

Osterwalder proposed ontology10 about the business models with nine thematic blocks and rules of interactions between them (Osterwalder, 2004, 2007, 2008, 2009), that group the main variables of a business:

Client SegmentsRelation with the ClientsDistribution and Communication ChannelsValue ProposalKey ActivitiesKey ResourcesAllied Network Income SourcesCosts

This holistic tool enables entrepreneurs to innovate their business model from the co-creation in working teams, acknowledging together different competitive as-pects of the business and its background.

The key steps in the innovation process of the business model according to Os-terwalder, can be summarized in three steps:

Visualize the model: Describe the current model Assess: Question and identify its weaknesses Innovate: Include new elements

Product development under the lean startup approach

This concept is part of the principle that the entrepreneurs that succeed are the ones which try several times before running out of resources (Eric Ries), and it is based in the learning speed validated by the product and the business model.

Fuente: Alexander Osterwalder.

10 Son formas o esquemas de representación de conceptos abstractos en forma universal


28

Figure No. 6Canvas Model (Osterwalder)

Key Activities

Allied Network Value

Porposal

Relation with the Clients

Key Resources

Costs

Clients segments

Distribution and common channels

Incomesource

World Management Trends

Regarding innovation in management, in the United States on May 2008 there was a meeting between the main world experts11

in management and innovation to iden-tify good organizational innovation practices and to define the next trends of mana-gement, stating the basis for the organizations prepared for the future.

The lean startup approach is translated in a light organization created to search for a repeatable and scalable business model, briefly is an experiment of trial and error in the market, to validate a minimum feasible product.

The difference between a startup and a company is that the startup searches its bu-siness model; however the company executes its business model.

According to Eric Ries, 9 of 10 startups disappear, also, it takes 58 ideas of business to achieve success in the market, and the 66% of the startups change completely plan A, in other words, the business plan. The main reason is the lack of customers; lots of startups fail because they create a new product which no one want’s. The Lean Startup approach is precisely a process which enables to iterate since plan A, a plan which works.

This way, lots of ventures have excellent success developing a product and fails due lack of customers, in other words, there are processes to manage the development of products, but there are no processes to manage the development of customers.

Within the main ideas raised by this model are the following:

You have to pivot until you find and validate the appropriate business modelAfter having success with the sales test, take the plungeThe plunge is an strategy, not a tacticReconstruct the management and organization of your companyCheck you mission

Stop sale and hear your clientsValidate your hypothesis Adapt your model until you prove it worksCreate a repeatable sale processPivoting or iterating is not abandoning your idea or vision, it is chan-ging your business modelPivoting is a consequence of learning your business, not only the pro-duct

11Among them: Gary Hamel- the lab management, Tim Brown- IDEO, CK Prahalad- University of Michigan, Peter Senge- MIT, for the total of 35 participants


29

Figure No. 7Minimum Feasible Product Model (Lean Startup)

Discover the client Validate the client

Client creation

Company construction

Amplify the education management fra-mework: “The training of directors shall be de-signed to create a more illuminated ‘conscien-ce”.

Redesigned the management of an open and without borders world: “As the distinction bet-ween “inside” and “outside” disappear, the ma-nagers shall learn to manage beyond the legal limits of the company”.

Rethink the philosophic foundations of mana-gement: “We need something more than new management practices, we need new manage-ment foundations”.

Construct flexible “natural” hierarchies.

Redefine the leadership work: “There is a need to go further the heroic leadership model, be-cause most leaders are not, in fact, too heroic”.

Create a democracy in the information: “The people in the first line shall be at least as well informed as the executive suit”.

Amplify the scope of the autonomy of the em-ployee: “The companies shall reduce radically the number of permits required to begin so-

The results of the study “Moonshots 12 for Manage-ment”, was summarize in the following trends:

chance to work in the things that matter”.

Capture the diversity advantage: “The organi-zational adaptability depends on the people whose points of view are not grouped around the average”.

Take the work without work: “We have to create working environments that are more envelo-ping than involving the best videogames”.

Adjust the direction from the bottom to the top and outside: “All the stakeholders have a role in setting the strategic direction”.

Experience more frequently and cheaper: “Ne-ver the next big opportunity seems to be that way from the start. Big opportunities arise from successive experimentation rounds”.

Create internal markets of ideas, talents and re-sources: “Organizations needs a resources allo-cation process more accurate to imitate the se-lection pressure in a real market”.

Depoliticize the decision making: “We have to find the way to separate the critical decisions of personal victories and losses”.

Disaggregate the organization: “The challenge is to create big organizations without losing the human scale”.

Focus the direction work in a more elevated pur-pose: “We need that the companies feel like social movements”.

Insert the community and citizenship spirit: “The relations among the stakeholders shall be seen as interdependent and with a positive sum”.

Humanize the language of business: “The human novel ideas shall turn into the business novel ideas”.

Increase the trust, reduce the fear: “The most im-portant challenge for any organization is to increa-se its trust circle”.

Reinvent the control means: “We need control sys-tems which determine the human contribution ins-tead of choking it”.

Amplify the imagination: “Often we mistakenly as-sume that basic employments are assumed by basic people. All the people are born with the ability to create”.

Facilitate passion communities: “The passion is a multiplier of human effort, but it cannot be manu-factured. It exists only when the people have the

Cure the soul:

Expand the mind

Distribute the powerUnleash the capacity

Promote the renovation

a.

a.

a.

b.b.

b.

c. c.

1

4

52

3

a.

b.

c.

d.

e.

f.

a.

b.

c.

d.

12 http://www.managementexchange.com/moonshots

c.


30

e. d.

companies, organizations and institutions. In this context CENPROMYPE, with the sup-port of the Council of Ministers of Women in Central America (COMMCA), has started in 2012, a mainstreaming processes of the gender perspective in the organization with the purpose of incorporate it in the regional action MSMSE. 14

To address that effort, it will be incorporated in the organization and in the actions pro-moted from it, measures of affirmative actions which are provisions addressed to com-bat the discrimination due to gender or to increase the presence and permanence of women in the labor environment in all sectors, professional and responsibility level15, including the Regional Strategy to Promote Entrepreneurship for Central America and Dominican Republic.

13Puertas, S. Proposal design for affirmative actions: measures guide for equal opportunity between men and women in the business environment. Spanish Coordinator for the Women European Lobby (CELEM)

14Diagnosis and participatory action plan in the mainstreaming process framework of the gender perspective in the micro and small enterprise promotion center in Central America (CENPROMYPE). Mabelle Figueroa Ramos and Marcela Rodriguez Gonzalez. April 2012

15 Advisory body of CENPROMYPE, integrated by the representations of the organization of the MSMSE in the region

One of the principles to take into consideration in the implementation process of the SICA EMPRENDE STRATEGY is gender equality. There are no doubts that the MSMES is a determinant factor for the social cohesion, the equality, the em-ployment generation and the economic and social empowerment of women; but for this, we need the MSMES policies to be more sensitive to the gender, and to assure the interlocution of women not only as beneficiaries and contri-butors of economic development, but as active and vital subjects for its sustai-nability. The SICA region has significantly advanced in policy, instruments and tool generation to support the MSMES and although the importance of women as employer and employees within the sector, the policies and programs are marked with a gender gap which restricts the real empowerment of women, the reduction of the entry gap, and the sustainability of the economic initiatives undertaken by them, also favors the permanence of unequal relations of power and gender within the family production units. To this situation, social changes which imply more public awareness should be impulsed by companies, organi-zations and institutions in their key role to active and voluntary contribution to the development of a more fair, equal, and supportive society13.

Thus, that the equal gender principle in business and labor environments has more importance, due to the fact that one of its effects is to optimize the use of human capital which has a direct repercussion in the competitiveness of the

mething new”.

Encourage the dissidents: “The electorate pro-change shall always be more powerful that the electorate no-change”.

e.

2.3 Gender

Perspective


31

3. Backgrounds

RegionalEntrepreneurshipAgenda

The Regional Strategy to Promote Entrepreneurship for Central America and Dominican Republic, is fra-med within a wide process of actions addressed to promote the competitive development of the MSMES in SICA region, in which the Board of Directors of CENPROMYPE is involved and also the president of SICA incorporating the topic within the agenda in the integration process.

The first highlighted antecedent within this process is the Extraordinary Summit of Heads of State and Government of the SICA countries of July 20, 2010 for the “Re-launching of the Central America Integration Process” through the promo-tion of actions in five main pillars: democratic security, prevention and disaster mitigation, social integration, economic integration, and strengthening of the regional institutions.

Within the pillar of economic integration and taking in consideration the impor-tance of MSMES in the business network of Central America and Dominican Re-public, in the Action Plan of the Summit, the presidents of the SICA region agreed to “instruct the competent authorities to develop efforts to promote the streng-thening of the competition of the micro, small and middle companies, addres-sing with priority the resources of the cooperation for their development and strengthening of the national and regional institutions, and the related public policies. In this sense, it is proposed to deepen the regional integration, articu-lating the national initiatives of the supreme governing bodies of the MSMES policies in each country and to consolidate the regional MSMES agenda”.


32

The MSMES in the SICA region

The economic importance of MSMES lies in its weight over the business network of the countries, and also in the employment generation and its contribution to the Gross Domestic Product. It is estimated that the 95% of the companies of Central America are MSMES, which generate 54% of the employment and provide 34% of the total region production (BCIR-FUNDEMOS, 2010). As we can observe in the gra-phics, the participation of the microenterprises within the MSMSE is highly significant, in countries such as El Salvador, Honduras, Dominican Republic and Nicaragua the participation of these companies ex-ceeds 90%, meanwhile in Guatemala, Costa Rica, turns approximately to 80%. In terms of employment the microenterprises at the urban level absorb 51.2%, the small enterprises 13.2% and the middle and large size 35.6% (OIT, 2008).

MSMES in the SICA Region(As total percentage of MSMES of each of the countries)

Source: micro, Small and Medium Enterprises: A collection of Published Data (2007), http://rru.worLADBank.org/Documents/other/MSMEdatabase/msme_database.htm. The year of the report differs from each one of the countries, for El Salvador case it was taken into consideration the information provided by the Economic Census 2005, for the specialties of each country see the data base.

This way CENPROMYPE as specialized body of SICA regarding the promotion of MSMES, assumes the lead role regarding to the fulfillment of the above mentioned mandate, in first place and in coordina-tion with the national bodies which support the en-terprises, it’s been ratified MSMES function to streng-then the competitiveness of the enterprises; second, to direct and manage the cooperation resources for the above mentioned purposes, third, to strengthen the institutional capabilities and the articulation of the main bodies regarding their initiatives, and to consolidate a regional agenda to promote MSMES.

At the end of 2009, the board of directors had identi-fied the needs to make an effort to create an agenda regarding the public policies to support MSMES, but at the same time considered good to raise the presi-dential level of the needs and give MSMES the place it deserves within the integration process, specially within the summit for the “Re-launch of the Central America Integration Process”, because sets the basis for the current integration scenario.

0.5%2.4%

97.1%

Costa Rica El Salvador Guatemala Honduras Nicaragua

0.0

20.0

40.0

60.0

80.0

100.0

120.0

0

82.2%

2.2%

15.7%

90.9%

7.6%1.5%

2.2%

77.7%

97.9%

16.7%5.6% 2.0% 0.1%

96.7%

2.8% 0.4%

83.3%

13.3%

2%

3.4%


33

Micro Small Medium

Panama Dominican Rep.

During 2009 and 2010 a consultation process to the public and private sector was performed, with the aims to identify thematic axes which the agenda would incorporate regarding the basis of regional consensus; after the bilateral consulta-tion of each of the parties, in September 2010 a joint meeting with the Board of Directors of CEN-PROMYPE and the Central America MSMES coun-cil16 was performed, its result was the consensual definition of the agenda to promote MYPIME in the SICA region.

Once the strategic guidelines of the MSMES Regio-nal Agenda were defined, it was presented in the XXXVII Summit of Heads of State and Government of the SICA countries on July 22, 2011; this allowed that in the Joint Statement, the presidents expose to “Acknowledge the fundamental contribution of MSMSE in the economic and social development of our nations, assuming the commitment to con-tinue supporting the strengthening of the above mentioned socioeconomic structures, also to pro-mote innovation and entrepreneurship issues.” In this way there is an explicit recognition about the importance of the segment, and at the same time derives from its reading, that innovation and entrepreneurship are two investments to improve the competitiveness of the enterprises.

Regarding the support of the presidents for the Regional Agenda, in the Action Plan of the XXXVII

Regional MSMES AgendaThe agenda is understood as a working path for the implementation of the policies, to promote MSMES in the framework of the regional integration and also as a guideline to address and allocate the resources of the States of the region and the international coo-peration, intended to promote the capabilities of MSMES.

The strategic guidelines defined under the consen-sus as priorities of the region are the following:

Promotion and development of the entrepreneurship

It is necessary to promote the entrepreneurship, since the development of an entrepreneurial culture passing by the management of new en-trepreneurs and reaching the promotion of their growth and consolidation.

Strengthening the productive articulation

The promotion of associativity and the productive articulation are key factors to improve the position of the enterprises in the regional market, therefore is important to have effective mechanisms of corpora-te engagement among both similar enterprises and large and SMEs, which make possible the access to the markets.

Inclusive finance

The real support generated by the Development

Bank is vital to increase the regional enterprise base and to overcome the weakness in the traditional fi-nancial instruments. It is important to advance in the consolidation of bank schemes for the developments of innovative and adjusted instruments for the diffe-rent enterprise stratum.

MSMES knowledge and statistics management

It is required a permanent effort for the systematiza-tion, analysis and diffusion of the best and program-matic institutional practices in the region, also the harmonization of the concepts and methodologies for business development services and the establis-hment of monitoring and evaluation mechanisms of MSMES promotion program.

Public-private-academic partnership

For the development of more accurate policies and attention mechanisms for MSMES it is required an articulation between the government, the private sector and the academy, which contributes to: a bet-ter allocation of scare resources, generate scale eco-nomies, co-investment of triple helix and to multiply the benefits.

16Advisory body of CENPROMYPE, integrated by the representations of the organi-zation of the MSMSE in the region

Summit, they agreed to “Execute the regional agenda of the Micro, Small and Medium Sized Enterprises (MSMES), in which they defined its priorities, to do so the Micro and Small Enterprise Promotion Center in Central America (CEN-PROMYPE) was instructed to manage the required technical and financial resou-rces, to increase their competitiveness.” This way, the entrepreneurship is part of the Regional Agenda and it is positioned as one of the intervention fields of CENPROMYPE facing its function to strengthen the public and private entities that support the enterprises.

Considering the mandate and as the dialog process stated in the entrepreneur-ship subject as a priority for SICA region, CENPROMYPE during 2011 performed a process to search for partners and donors who would contribute to impulse the entrepreneurship in the interventions to support the MSMES in the region and its related countries, therefore in coordination with the SICA-GS a mone-tary contribution with the Republic of China (Taiwan) was performed to pro-mote the entrepreneurship in the region under the title “Central America and Dominican Republic Program EMPRENDE”; however, in 2010 CENPROMYPE as partner - and with- of the “Central America Sustainable Economic Development Program” (DESCA) of GIZ participated in the collective construction of the “Diag-nosis of the situation of the Entrepreneurship in Central America” in charge of the Central America Bank for Economic Integration (BCIE) and the German De-velopment Bank (KFW).

Taking as a base this context, in the Action Plan of the XXXVIII Summit of Heads of State and Government of the SICA countries of December 16, 2011 the pre-sidents agreed to “Instruct the Micro and Small Enterprise Promotion Center in Central America (CENPROMYPE) to present in our XXXIX Ordinary Meeting a proposal of the Regional Strategy of Entrepreneurial Encouragement for Central America and the Dominican Republic, also to begin the execution of the Central America and Dominican Republic Program EMPRENDE, to contribute in the im-plementation of new corporate initiatives in the region.”

This way the formulation of the Regional Strategy of Entrepreneurship Encou-ragement for Central America and Dominican Republic is institutionalized and supported.

Regional Program of Mesoamerican Cooperation

The Mesoamerican Region is a part of the priorities of Colombia foreign policies. Broadly, is formed by Belize, Colombia, Costa Rica, El Salvador, Guatemala, Hondu-ras, Mexico, Nicaragua, Panama and Dominican Republic, countries that share cul-tural, geographic and natural similarities, as important goals for its development.

The Regional Cooperation Program with Mesoamerica is a regional strategy of the Colombian Government, which execution is coordinated by the Colombian Pre-sidential International Cooperation Agency, APC, with the support of the Foreign Relations Ministry of Colombia and the different social technical entities for each of the components of the Program.

Its purpose is to contribute in solidarity through the actions of the South-South Cooperation, to the economic and social development of the region, since its expe-rience, knowledge and lesson learned, accumulated since the public institutions, the private sector, the academy and the civil society organizations and through modes such as expert exchange, courses, seminaries and workshops, internships, studies and research, among others.


35

It seeks to strengthen and extend the cooperation, through the development of sectorial portfolios, with a regional approach and to promote the dialog around different issues. Also to promote the increase of the efficiency levels in the mana-gement of the South-South Cooperation, generating higher added values which will help to streamline efforts, systematize actions and optimize the results and its impact.

The components of the program are the following:

The component “Support to the MSMES” is bonded with the promotion initiati-ve of Mesoamerica MSMES, Colombia shares its experience to contribute to the strengthening and promotion of entrepreneurship, the design, and develop-ment of policies to support the micro, small and medium sized enterprise, also in the design and application of the mechanisms and instruments to strengthen the institutionalism, management, operations and finance of the enterprises.

Social Promotion

PublicServices Security

MSMES Support

Local Governance

Quality Management

The working lines of this component are the following:

Strengthening of policies and institutions to develop micro, small and me dium enterprises• Promotion instruments and support to entrepreneurship• Innovation and technological development• Financial mechanisms

Under this framework and in coherence with the working guidelines “Promotion and support instruments for entrepreneurship”, APC-Colombia celebrated an strategic alliance with CENPROMYPE, a direction institution from SICA to pro-mote and strengthen the MSMES, which signed the Entrepreneurship Memo-randum in August 2012 San Salvador, to support the formulation of a Regional Strategy of Entrepreneurial Encouragement for Central America and Dominican Republic, the process includes the identification of actions to implement in a bilateral level. In addition, it has the triangular support of the Australian Agency for International Development- AusAID.


36

4. RegionalEntrepreneurship

DiagnosisState

The approach of the current diagnosis depends from the analysis of the information available for the SICA region of indicator related to the business environment and the entrepreneurship environment, understood as “a business community, supported by a public context of law and business practices formed by a base of interacting organi-zations and individuals which produce and associates business ideas, skills, financial and non-financial resources which results in dynamic enterprises ”17.

The information available is at the entrepreneurship and business environment indicator level and at the entrepreneurship environment level.

A challenge which needs to be address is the lack of information about entrepre-neurships in the region, both in terms of global indicators on input and output of enterprises and the evolution of the businesses during their first years and also monitoring and impact evaluation of the efforts performed regarding the support issue to create new companies.

Regarding the business environment, 7 of 8 countries of the Central America re-gion report information to the Global Competitiveness Index to the Economic World Forum. Illustration 1 presents a raking which has the Central America countries in the 144 countries for which there is an index. The countries that are closer to the center are the ones with better position while the countries outside have low position.

17Learning Guide about Dynamic Ventures. Octantis, BID-FOMIN 2008

and Competitive Entrepreneurship4.1 Indicators


37

Illustration 1. Raking of Central America countries in the Global Competitiveness

Index 2012 (144 countries)

Source: World Economic Forum, Global Competitiveness Report 2011-2012

This indicator has 3 dimensions: basic requirements, efficiency enhancers and innovation factors and business sophisti-cation which are qualified in the scale of 1 to 7. Panama and Costa Rica are the coun-tries with better position. Box 1 shows the index for the countries of the region which are the base for the ranking of the above illustration.

Box 1. Global Competitiveness Index-GCI (1-7)

Dimensions/Fac-tors Costa Rica El Salvador Guatemala Honduras Nicaragua Panama

DominicanRep.

GCI 2012-2013 4.3 3.8 4.0 3.9 3.7 4.5 3.8

4.3 3.9 4.0 4.0 3.6 4.4 3.7

4.3 4.0 4.0 3.9 3.6 4.3 3.7

4.6

4.1

3.8

4.7

5.8

4.1

3.0

3.9

4.2

5.4

4.2

3.2

3.8

4.6

5.3

4.1

3.3

3.1

4.5

5.3

4.0

3.3

3.0

4.2

5.4

4.8

3.9

4.8

4.9

5.7

3.9

3.2

3.0

4.2

5.1

GCI 2011-2012 (de 142)

GCI 2010-2011(de 139)

Basic Requirements (40.0%)

Instructions

Infrastructure

Macroeconomic Environment

Health and Primary Education

4.2 3.7 3.9 3.7 3.4 4.4 3.8Efficiency Enhancers (50.0%)

Costa Rica El Salvador Guatemala Honduras Nicaragua Panama

0

20

40

60

80

100

120

Basic Requirements (40%)

Innovation and Sophistication Factors (10 %)

Efficiency Enhancers (50%)

Dominican Rep.

Training and Higher Education

4.8 3.4 3.5 3.4 3.3 4.2 3.7

4.3 4.2 4.3 4.1 3.8 4.6 4.0

4.5 3.9 4.2 3.5 4.0 4.2 4.0

4.0

4.5

3.6

3.2

3.8

2.5

3.6

4.2

3.0

3.3

3.8

2.8

3.0

3.4

2.7

3.8

4.2

3.5

3.2

3.8

2.7

Efficiency in the Goods Market

Efficiency in the Labor Market

Innovation and sophis-tication factors (10.0%)

Business Sophisti-cation

Innovation

4.4

3.7

3.3

4.0

3.5

4.5

3.3

4.4

3.0

3.5

4.9

4.9

3.7

3.7

Technological Isola-tion

Development in the Financial Market

3.4 3.2 3.5 3.2 2.8 3.4 3.7Market Size

Source: World Economic Forum, Global Com-petitiveness Report 2012-2013. The countries ranking is presented in Annex

Another indicator used at the global level is the ease of doing business index EDB-World Bank. This indicator qualifies 10 dimensions which are related to the ease of doing business: business startup, construction permits, attainment of electric energy, property registration, attainment of funding, investor protection, tax payment, external commerce, contract enforce-ment, and insolvency resolution. The ranking of Central Ame-rican countries in the different dimensions of this indicator is presented in illustration 2. En each dimension the countries that are closer to the center of the graphic have better position in the ranking. In addition the Central America countries is lo-cated between level 61 of Panama, which is the country with better position and 125 Honduras which is the country with lower ranking.

Illustration 2. Ranking in the Ease of Doing Business Index, Central America and Dominican Republic 2012.

Source: EDB-World Bank. Doing Business 2013. The ranking is among 185 world economies and the information is from June 2012. Annex 2 presents a detail of different factors on each dimension.


39

Business Startup (rank) construction

permits (rank)

Electric Energy Attainment (rank)

Property Registration (rank)

Attainment of Funding (rank)Investor

Protection (rank)

Tax Payment (rank)

External Commerce (rank)

Contract Enforcement (rank)

Insolvency Resolution (rank)

Dominican Rep.

Specifically regarding business startup the number of proceedings, the days required to per-form them, the costs and minimum capital required are rated. In this dimension there is a big gap between Panama which is located in the 23 position and the second country which is Costa Rica in position 128 and the last place Guatemala in position 172.

The Global Competitiveness Report also shows the main issues which makes more difficult to do business in the different countries and the interviewed parties are ask to choose 5 main problems and to give them a qualification among 1 and 5 according to severity level. The graphic summarize the ranking in 5 main problems in the countries of the region, the score of the different problems is shown in Annex 4.

The indicators regarding entrepreneurship at a global level were pro-duced by the studies of the Global Entrepreneurship Monitor (GEM). These indicators are based in surveys performed to the population with the legal age to work (18-64 years) and among them captures information about the skills toward new entrepreneurship, rates of new entrepreneurs and entrepreneurship. Although these indicators are attached and do not allow to monitor with detail the different en-trepreneurships, they are a source to monitor some issues especially in the absence of more detailed and deepen studies. Unfortunately in the last GEM report of 2012 only three countries in Central Ame-rica region where included: Costa Rica, El Salvador and Panama. In previous years Guatemala (2011) and Dominican Republic were in-cluded.

The entrepreneurial attitudes collect a favorable perception from the population regarding the opportunities provided by the envi-ronment for a business startup, the skills to manage with success a venture, fear to failure, the propensity to startup a business in the fo-llowing years, the positive attitude regarding a business startup as a career option and the treatment of the media to the entrepreneurs. Box 2 shows the indicators of attitude towards the entrepreneurship for five countries in which there is information and in the aggregate of the three development levels of the countries. According to the country among 38% and 50% of the populations perceives favorable conditions to startup a business and among 43% and 78% considers that there are favorable capabilities to startup a business. The failure fear is a factor which prevents to start a venture for a percentage that varies between 17% and 42%. Regarding the perception of entrepre-neurship status and the treatment of the media these indicators are a little bit above in the countries with similar development levels18 .

18 GEM methodology considers 3 development levels, countries in which the dynamic depends on factors, economies driven by efficiency and innovation.

Illustration 3. Main Problems for Business 2012.

Source: own elaboration based in the World Economic Forum. Global Competitiveness Report 2012-2013. With base in Annex 3 and the qualification presented in Annex 4.


40

Government Inefficiency Corruption

Crime and Robbery

Access to Financing

Workforce with Inadequate

Inadequate Infrastructure

Policy Inestability

Tax Rate

Tax Regulations

Inflation

Dominican Rep.

Box 2. Attitudes and Perceptions of Entrepreneurship, Central Ameri-ca Countries according to Development Levels 2012

DEVELOPMENT LEVEL/ Country

Perceived Opportunities: Population % favorable conditions to startup a venture

Population % which hopes to startup a business in the next 3 years

Capabilities Perceived: Population % favorable capabilities to startup a venture

Population % as who considers that startup a business is a good career option

Failure Fear

Population % that thinks that the successful entrepreneur has a high social status

Population % that thinks that the media presents a good coverage of the entrepreneurs

ECONOMIES DRIVEN BY FACTORS (13 Countries)

ECONOMIES DRIVEN BY EFFICIENCY (30 Countries)

ECONOMIES DRIVEN BY INNOVATION (24 Countries)

GUATEMALA(2011)

COSTA RICA

PANAMA

Simple Average 1/

EL SALVADOR

DOMINICANREP.(2009)

Simple Average 2/

Simple Average

55

47

38

63

43

50

41

31

71

63

43

71

59

78

52

36

25

35

17

28

42

27

32

39

26

33

12

48

40

25

26

10

86

72

-

76

73

92

70

53

68

72

-

80

72

88

69

68

62

79

-

68

62

61

60

56

Source: Global Entrepreneurship Monitor Report 20121/ does not include Guatemala2/ does not include Dominican Republic


41

The rate of new entrepreneurship acti-vities, shows the population percentage between 18 and 64 years involved in entrepreneurship activities, including the startup (ventures up to 3 months) of new enterprises (ventures from 3 to 42 months).

Box 3 states the rates for five countries of Central America for which there is in-formation regarding the last years and for the average of countries according to development level. The NEAI varies for the countries in which there is infor-mation available from 9% to 19% while the enterprise closure rate varies bet-ween 2% and 13%. Costa Rica and Pana-ma present greater proportion of ventu-res due opportunity a lower proportion motivated by necessity. The other coun-tries of the region such as Guatemala, El Salvador and Dominican Republic present rates directed to the motivation by necessity. The characteristic is impor-tant due the evidence shows that there is a correlation between motivation for a business startup and the dynamic of enterprises.

Box 3. New Entrepreneurial Activity Index (NEAI), 2012

DEVELOP-MENT LEVEL/ Country

Rate of New Born Entre-preneurs 3/

Rate of Established Entrepre-neurs

Rate of new entrepre-neurs 4/

Rate of Enter-prises Closure

Level of New Entre-preneurial Activity (NEAI) 5/

Entrepre-neurial Activity Motivated by Neces-sity (% of NEAI)

Entrepreneurial Activity Motiva-ted by Opportu-nity (% of NEAI)

ECONOMIES DRIVEN BY FACTORS (13 countries)

ECONOMIES DRIVEN BY EFFICIENCY (30 countries)

ECONOMIES DRIVEN BY INNOVATION (24 countries)

GUATEMALA(2011)

COSTA RICA

PANAMA

SIMPLE AVERAGE 1/

EL SALVADOR

DOMINICANREP(2009)

SIMPLE AVERAGE 2/

SIMPLE AVERAGE

12

10

7

12

8

9

8

4

9

5

3

13

8

9

6

3

19

15

9

24

15

18

13

7

3

3

2

11

9

11

8

7

4

3

2

13

8

13

5

3

34

20

19

35

35

34

28

18

34

48

57

42

39

26

46

51

Source: Global Entrepreneurship Monitor Report 2012.1/ Does not include Guatemala2/ Does not include Dominican Republic3/ Ventures with less than 3 months

4/ Ventures from 4 to 42 months5/ New born + new ventures6/ Ventures with more than 42 months


42

If the above indicators are compared by the gender of the entrepreneur they show that in general, as occurs in other regions the NEAI is higher in men that in women with the excep-tion of Panama (Box 4). But the main difference is in the motivation to star-tup a business. The evidence clearly shows that the ventures motivated by necessity are higher for women than for men meanwhile the ones motivated by opportunity are higher for men.

Box 4. NEAI by entrepreneur gender, 2012

Source: Global Entrepreneurship Monitor Report 2012.

REGION/ Country

Men NEAI (% of adult popu-lation)

Women Opportunity NEAI (% of women NEAI)

Women NEAI (% of adult population)

Men Necessity NEAI (% of men NEAI)

Men Oppor-tunity NEAI (% of Men NEAI)

Women Ne-cessity NEAI (% of women NEAI)

LATIN AMERICAN AND THE CARIBBEAN

SAHARAN AFRICA (10 countries)

PACIFIC ASIA AND SOUTH ASIA (8 countries)

EUROPE UNION (22 countries)

EUROPE OUTSIDE THE UNION (7 countries)

COSTA RICA

PANAMA

SIMPLE AVERAGE

EL SALVADOR

SIMPLE AVERAGE

SIMPLE AVERAGE

SIMPLE AVERAGE

UNITEDSTATES

SIMPLE AVERAGE

SIMPLE AVERAGE

20

8

12

16

19

30

12

15

10

10

11

10

4

14

15

27

7

10

5

5

79

81

58

69

81

69

70

76

75

65

77

78

58

57

71

61

76

74

74

59

18

19

35

28

19

30

28

21

21

33

23

20

34

42

28

38

23

21

21

37

NORTH AFRICA AND MIDDLE EAST (6 countries)


43

Tabla 5. Expectations of growth of new businesses for the next 5 years, 2012

Information which will allow classifying the entrepre-neurships between the ones with high grows poten-tial and the ones with less dynamic which are more scare. The information provided by the GEM shows that just a lower percentage of entrepreneurships have high grow potential. Box 5 includes the growth expectations in terms of employments for the next 5 years of ventures. From the evidence is clear that the proportion of ventures which could be considered with high dynamic is low from the total of ventures. The ventures which expect to hire between 0 and 5 workers in the countries of the region are between 7% and 10%; among 5 and 19 employees between 0.6% and 2.5%; and more than 20 employees bet-ween 0 and 1.3%.

Source: Global Entrepreneurship Monitor Report 2012.

Región/ País 1-5 Employment (%) 5-19 Employment (%) 20 Employment or more (%)

LATIN AMERICA AND THE CARIBBEAN

SAHARAN AFRICA (10 countries)

PACIFIC ASIA AND SOUTH ASIA

EUROPE UNION (24 countries) 22 countries)

OUTSIDE EUROPE UNION (7 countries)

COSTA RICA

PANAMA

SIMPLE AVERAGE

EL SALVADOR

SIMPLE AVERAGE

SIMPLE AVERAGE

SIMPLE AVERAGE

UNITED STATES

SIMPLE AVERAGE

SIMPLE AVERAGE

9.9

7.3

4.2

8.2

9.8

18.1

6.1

6.6

3.9

3.2

2.5

0.6

1.7

2.8

2.7

3.6

1.5

2.2

1.5

1.4

0.8

0.0

0.7

1.3

1.3

1.5

1.4

1.7

0.9

0.9

NORTH AFRICA AND MIDDLE EAST (6 countries)


44

In general the conclusion regarding the information of the macro indicators of GEM19

for the countries in which there is information, show that a significant percentage of entrepreneurs are still oriented to small markets, consumption, with limited levels of in-novation. This does not mean that there is no experience of companies with high inno-vation level and with high growth prospects but the proportion of this type of compa-nies is still limited regarding the total volume of ventures and insufficient to generate a transformation in the productive structure of the region. A strategic factor to overcome this situation is to increase the progression of livelihood initiatives to higher economic development levels, exploiting the existing population potential; however this will not happen by ensuring the resources endowment which meets the survival needs and the socio-economic and educational development, the participation in representative decision-making processes and the empowerment of women over represented in this type of entrepreneurships.

The conclusion follows from the experts survey GEM, which states that there are still significant gaps in the generation of entrepreneurial skills in the different levels of the educational system and better public policies are required to encourage the creation and growth of new companies and specifically in new credit instru-ments to support funding of the entrepreneurships. Expert’s opinion matches in the countries of the region, in which there is an important deficit at the level of generation entrepreneurial capabilities at all levels of the educational system, also as government

policies which stimulate the creation and growth of enterprises, and the availability of proper funding instruments, attending the non-biased diver-sification by factors related to the discrimination of gender, age and ethni-city. On the other hand, in three or four countries the availability of physic infrastructure is evaluated positively. In Panama case, there is a favorable perception regarding the opportunities available to startup a business.

The estimations regarding the entrepreneurship stock with growth poten-tial, states that the proportion is still low and if we add the lack of a support network which provides the technical, financial and market requirements, and also which take care of the proper availability of the workforce, this means that just a little number of enterprises is able to reach its potential.

19 Information available for Costa Rica, El Salvador, Guatemala, Panama and Dominican republic


45

SupportEntrepreneurship Regulation Framework for

Entrepreneurship in the SICA region4.2 Ecosystems

Recent studies have revealed a mapping of the en-tities involved with the entrepreneurship in Central America region20. The Study FECAMCO -LADB pre-sents information of the ecosystem in seven areas:

Education and knowledge gene-ration Government and regulationsMarketsSpecific servicesCulture and societyInformal networks and capital stock

Funding

Are very few countries which have raised the entrepreneurship issue at a political level and/or law, following there is a list of two countries in the region which have a regulation framework:

Panama, has the following regulation framework to promote the entrepreneurship: (i) Law No. 5 is approved (January 2007) since which the PANAMA EMPRENDE LAW is created to speed up the enterprise startup process; and (ii) Law 2 is approved (November 2009) in which the BUSINESS DEVELOPMENT FUND is created, allocating funds in concept of seed capital to promote the entre-preneurship.

Costa Rica has the NATIONAL POLICY FOR ENTREPRENEURSHIP “COSTA RICA EMPRENDE”, launched on December 2010. This initiative was stated as one of the strategic axis of the actions of Chinchilla Miranda Management (2010-2014), with the aim to support entrepreneurs in the forma-tion and consolidation process of their business project, acknowledging that the creation of new enterprise is a revitalizing element of all the economy.

Source: Panama- Micro, Small and Middle Enterprise Authority (MSMEA); Costa Rica- Ministry of Economy, Industry and Commerce.

From the analysis of this ecosystems raised in the mentioned studies the following conclusions are ob-tained:

In the region it starts to appear consciousness that entrepreneurship requires specialized po-licies and instruments and that it’s not enough with general policies and instrument to support MSMES. An example of the advance of this issue is Costa Rica (See box)

It can be observed that the entrepreneurship programs are mainly focused in university stu-dents and not in older and more experienced people or in groups which do not develop en-trepreneurs regarding the gender roles socially stated for the population control versus the hu-man development and its society.

It’s important to highlight the lack of informa-tion regarding the dynamic of the enterprises which allows valuing the evolution of the bu-siness ideas, the creation of enterprises and its growth during the first years. There is only general information provided by GEM which allows to properly assessing the characteristics of the entrepreneurships and its performance.•


46 20 FECAMCO-CFCC-LADB. What Central America Could do for the Dynamic Entrepreneurship Support ITS Growth: Mapping and Analysis of Ecosystems in seven countries. April 2012 CABEI-CENPROMYPE-GTZ Diagnosis of the situation of the Entrepreneurship in Central America. 2010 elaborated by the Incubator Association PARQUETEC.

There is an appearance of a significant number of public and private programs supported by international cooperation which are generating knowledge applied in the different countries, but a monitoring mechanism with predefined variables is required to value the level of success and the possibility to climb experience. Therefo-re is indispensable to think in a monitoring and impact evaluation system which apply the tech-nical principles commonly accepted to monitor and evaluate the impact and also the factors that restrict the development of the different ty-pes of entrepreneurs according to the social and economic characteristics, such as gender, age and ethnicity among others. Only by knowing the limitations we will be able to overcome the ideological and market expectation which are abstractions that do not allow control over the results neither to impulse them.

Despite the existence of a growing number of programs, there is no consolidated support sys-tem for entrepreneurs as a harmonized action from the different entities who works with the entrepreneurship issue or the entities related such as educational, equal, security entities; fe-male corporations, social organizations, microfi-nance entities, etc. In general subsystems with specific interactions are established between them but not as a platform which offers integra-ted services for the entrepreneurs.

National Entrepreneurship Policy – Costa Rica (2010-2014)Advances in the implementation

February 2013

We detail below the advances that Costa Rica has experienced in the implementation of the Costa Rica EMPRENDE Policy by strategic area

Institutional Articulation

The creation Ruling of the Development Integrated System for the Entrepreneur and MSMES (Decree Nº37105-MEIC May 2012)

The creation of the National Council for Entrepreneurship directed by MEIC and integrated by 9 bodies. Also works the Entrepreneurship Network, conformed by 17 institutions.

The creation of the National Incubation and Acceleration Network (NIAN)

Entrepreneur promotion

To contribute to the generation of an entrepreneurial culture in the technical colleges, the “Know About Business” methodology was implemented (KAB) with the support of the International Labour Organization (ILO), with professors and students in the priority regions as strategies in the country. 7,800 students and 260 professors have been trained at this date.

The celebration of the Entrepreneur Global Week at the national level and with more than 60 side events.

Incubation National System

The approval of the Regulation Framework of RNIA in the National Entrepreneurship Council (July 2011)

The elaboration and approval of the Registry Form in the National Incubation and Acceleration Network

There are 5 registered incubators in the MEIC and one more is in registration process

Innovation

Creation of the Practical Training Program in Innovation addressed to the market in 2011, under the coordination of the MICIT- University of Leipzig Germany and the National Technical Unit, with the purpose of training entrepreneurs and professionals as managers of innovation. It has 140 trained managers at the national level.

Source: Ministry of Economy, Industry and Commerce, February 2013


47

There is little specialty in the different entrepre-neur profile: subsistence and high potential and growth. It is clear that the subsistence entrepre-neurs may have more coverage and lower capi-tal requirement, but they have limited growth in income generation and employment. On the other hand, the entrepreneurs with more growth have more risk and greater investment requirements, but if they succeed they also ge-nerate more benefits. We have to work in the specialization of the different entities in the en-trepreneurship profiles which will be supported, and structure their instruments for each type of entrepreneurship which will be supported. The diversification and development of the profiles goes through the potentiation of the focussing of entrepreneurship and population groups or-dinarily excluded in the different types of entre-preneurship and the development of policies, programs and instruments that respond to their specific needs, including the attention to fac-tors and starting conditions which support the exclusion.

Low credibility of large companies in the public sector to advance in entrepreneurial programs. It is important to establish a long term strate-gy and involve the chaining schemes, public-private-academy and at the same time blur the excluding dichotomy that restrict the develop-ment of the integral and innovative entrepre-neurs.

It is also starting the bond of the university as seed for entrepreneurship which needs to be potentiated, defining and strengthening the role of the universities. The universities support

the definition of business plans of their stu-dents but they have few linkages and alliances to support the birth and consolidation of new business ideas with the different technical, fi-nancial, non-financial and market instruments required in the different birth and consolidation stages of business.

Entrepreneurial formation is still focused in the preparation of business plans; more emphasis on learning by doing is required.

Development of proper financial instruments in the different entrepreneurial stages and popu-lation groups, in early creation and growth sta-ges of entrepreneurs. The financial instruments for entrepreneurs must take in consideration that there is an appreciable failure rate to achie-ve fast growing success. Combine seed capital in which a part of it would be an incentive (non refundable fund, if achieving some goals) and the rest a refund as royalties or through shares sale to their owners or to new investors. It’s also important to work with financial sources for support in the different growth or consolidation stages of the enterprises. Private investment is still important to enlarge the informal direct investment experience (families and friends specially population outside the country), in-vestment angels and mechanisms for private investors. The public role in this field can be ad-dressed to generate tax incentives for this type of investments.


48

CULTURESTENGTHEN

TRUSTIDENTITYCULTURCULTUR

TRUSTTRUSTDIALOGUE

CULTUREENTREPRENEURSHIP

INTEGRATIONCOOPERATION

EQUITYNATIONAL

EQUITYEQUITYECOSYSTEMSEDUCATIONINNOVATION

DIALOGUE

Encouragement

5. Strategy

and Dominican Republic

for Entrepreneurship

Central Americain

21

21 The Regional Strategy it is an agreed bet of the countries, to integrally promote the entrepreneurship in the region, however its achievement at a country level will derive on its own emphasis of the national context and advances in entrepreneurship.

5.1 Strategic Bets

SHARED

In 2017 the will be in the region * an en-trepreneurship and innovation culture and identity, with a strengthened ecosys-tem, high commitment and appropriation, through new financial instruments and sup-port platforms.

DREAM

* Central America and Dominican Republic

MANIFESTIn the Entrepreneurship Regional Network, we believe in guiding principles such as affordability to democratize the access to the entrepreneurship services; we believe in equity, to offer the same opportunities of support without distinction, especially regarding gender; we believe in trust and integration as an axis to pro-mote jointly and long term actions; we believe in identity and culture, to respect the idiosyncrasy of each nation and to promote a jointly entrepreneurship culture; we believe in innovation as an strategy to add value; we believe in dialogue and cooperation, as a mechanism of dynamic communication, exchange and consen-sus between the countries.

MISSIONARY

The main role of the Entrepreneurship Regio-nal Network* is to strengthen the national entrepreneurship ecosystems and its inte-raction, since the innovation of the financial instruments, positioning of culture, differential and inclusive approach and technological tools

* Central America and Dominican Republic

ROLE


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5.2 Strategic

The Entrepreneurship Regional Strategy is based in five strategic axes detailed below:

Axes


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Figure No.8 Axis of the Regional Strategy

Support Industry

Educ

ation

al Sy

stem

Mentality and Culture

Institut

ional

Articul

ation

Funding

Source: Self made

5.3 ForecastVision

We present below the forecast of each strategic

vision:

Box 7. SICA EMPRENDE STRATEGY: Vision for each strategic axis

STRATEGIC AXIS SHARED VISION

SUPPORT INDUSTRY

FUNDING

INSTITUTIONAL ARTICULATION

MINDSET AND CULTURE

EDUCATIONAL SYSTEM

Support industry strengthen with new added value servi-ces, supported by a favorable and cutting edge policy and legal framework.

Diversified and available funding sources to support the ventures of the different population groups, especially the most excluded and the support institutions.

Entrepreneurship culture and mindset taken by most of the citizens, which recognize the importance of being an entrepreneur.

National entrepreneurship ecosystems articulated in an effective and strategic way, creating space for institutional and intersectoral collaboration, interdependence, coopera-tion and collective actions.

Educational system articulated as a function of entrepre-neurship and innovation, with new curriculum content, tools and technology that empowers human talent in a comprehensive and non-discriminatory way on grounds of gender, age or ethnicity among others, so that ventures are conceived in a quantitatively and qualitatively way and with potential for success.

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5.4.4 MINDSET AND CULTURE AXIS

Strategic Objective: To promote mindset and cul-ture oriented to innovation and entrepreneurship based on the development of specialized human capacity, without gender discrimination and other determinants of socioeconomic exclusion, and the regional entrepreneurship trademark.

Strategic Initiatives:

5.4 Strategic Initiatives Based on the analysis of trends and context of the SICA Region, two strategic initiatives for each one of the areas were established and prioritized in a con-certed manner. Both initiatives are described below:

5.4.1 SUPPORT INDUSTRY AXIS

Strategic Objective: To implement new models that promote the strengthening of the support industry based on the SICA Region context


ENTERPRISE REGULATORY AND POLITICAL MODEL: Development of a frame of reference that contains recommendations for the creation of a regulatory and political model that suits the needs of the region and according to the socioeconomic and educatio-nal conditions of entrepreneurs.

STRENGTHENING OF SUPPORT INDUSTRY: Design and implement an opportunity entrepreneurship de-velopment plan with a sectorial pilot strengthening the support industry with a diversified inclusive di-fferential approach.

5.4.2 FINANCE AXIS

Strategic Objective: Expand the supply of resources that finance inclusive entrepreneurship in the region

through multiple sources.


5.4.3 ARTICULATION AXIS

Strategic Objective: To promote synergy to support entrepreneurship in public and private institutions of the sector and others related, especially those related to education, equity and socioeconomic inclusion.

Strategic Initiatives:5.4.5 ARTICULATION AXIS

Strategic Objective: Strategic Objectives: To stren-gthen synergy for the support of entrepreneurship in the educational system and public-private institu-tions.


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NEW FUNDING MECHANISM: To define and start operating a regional funding mechanism for the development of innovative inclusive entre-preneurship and institutional strengthening.

INNOVATIVE FUNDING MECHANISMS: To im-plement permanent processes of innovation of funding instruments with a differential inclusive approach oriented to entrepreneurs, specially those that allow diversification and expansion of entrepreneurship supply and demand consi-dering differentiated conditions, specially tho-se of gender.

CREATION OF A REGIONAL ENTREPRENEURSHIP NETWORK: To articulate the “Regional Strategic Entrepreneurship Network” for the positioning of entrepreneurship in the public and private agenda, and for the transference of knowled-ge.

ENTREPRENEURSHIP REGIONAL TECHNOLOGI-CAL PLATFORM: To develop a platform in the

“Cloud”22 which allows to offer intraregional en-trepreneurship services.

SPECIALIZED HUMAN CAPACITY: To design and develop a regional training program for advi-sors and teachers for innovative, inclusive and diversified entrepreneurship.

ENTREPRENEURSHIP REGIONAL TRADEMARK: To create and position an entrepreneurship regio-nal identity for the promotion and permanent development of entrepreneurial mindset and culture as a mean for the development of human capacity, life and society.

22 Cloud computing is a paradigm that can offer computing services via the Internet.


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5.5 MATRIZ DE

5.5 MATRIX OF THELOGIC FRAMEWORKThe countries in the SICA region established that CENPROMYPE would be in charge of coordinating the Regional Strategy of Entrepreneurship Promotion. Because of its institutional capacity coordinating the efforts among the governments of par-ticipating countries, CENPROMYPE would be the coordinator encouraging econo-mic integration through the competitiveness promotion of the MSMES.

The matrix of the logic framework of the Regional Strategy of Entrepreneurial Pro-motion is shown below. It constitutes the basic tool for the formulation of proposal to the international cooperation in order to get resources (technical and financially support) for the development of the strategic agenda.

9

10

ENTREPRENEURSHIP TOOLS FOR EDUCATION: To develop technologic and methodologic tools of creativity and innovation for inclusive innovative entrepreneurship that strengthen the quality of the regional educational system through the empowerment of human capaci-ty in an integral non-exclusive manner due to gender, age, ethnicity, among others, so that diverse successful qualitative and quantitative entrepreneurship is conceived.

ENTREPRENEURSHIP CURRICULAR CONTENTS: Incide in the educational system with integral, updated, innovative and gender equally entre-preneurial contents.


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Description

Generate inclusion and equal opportunities bet-ween men, women and other population groups, in terms of access, use and development of supporting services to entrepreneurship and innovation.

Implement strategies or national programs of entrepreneurship promotion that include the working axes of the Regional Strategy, from a perspective of equality in gender and social inclusion.

Strategies and national program of entrepreneurs-hip, new businesses created and/or strengthened for the different population groups in equitable conditions.

New employments created and/or strengthened the different population groups in equitable conditions.

At the end of 2018, having implemented at least 95% of the Entrepreneurship Regional Strategy in the countries of the region, with inclusive approach.

Goal

Programmed Goal

Indicator Verification Sources Assumptions

Create opportunities of Access, use and deve-lopment of entrepre-neurship and innovation services, considering the different conditions and needs of men, women and other population groups.

Regional Strategies inte-grating the components of the SICA EMPRENDEN Strategy and affirmative action’s for women.

Strategy Documents deve-loped by the countries.Entrepreneurial satisfied and institutions streng-thened, contacts, photos, minutes, lists of attendance.

Equal participation of men and women.

Accidental/ fortuitous event, acts of nature.

At the end of 2015, at least seven (7) National Strategies designed in coherence with the Regional Strategy, as well as the mechanisms that promote the supporting industry, financing, insti-tutional articulation, tools and entrepreneurship and innovation curricula with gender approach

Purpose

Chart No.8Logical Framework: Regional Strategy of Entrepreneurial Development 23

2012-2017

23 Intervention will be adjusted to the entrepreneurship profile that the countries want to approach. For example: necessity entrepreneurship, opportunity, those entrepreneurships from students graduated from college or universities that are promoting these programs in their curricula, etc.

Good will and ap-propriation from the governments.

Models that promo-te the supporting industry designed and implemented.

N° of mechanisms that promote the suppor-ting industry, designed and implemented.

Contracts, Minutes, docu-ments, final report of the contract.

At the end of 2015, seven (7) national stra-tegies will be design to promote the supporting industry (regulation/political framework; and opportunity entrepre-neurship pilot).

Deliverable 1:

Deliverable activities:

Lack of interest of the institutions that sup-port the entrepreneurs-hip or acts of nature.

Different resource sou-rces for the financing of programs that sup-port entrepreneurship.

Institutions that sup-port articulated and strengthened entre-preneurship

Mapping of the chain status.

N° of strategies imple-mented to increase the financial resources of en-trepreneurship support, especially those addres-sed to women and other groups excluded

Level of effectiveness = (Goal achieved)(Timeframe planned) / (Goal programmed)(Real Time)Institutions, governmen-tal and non govern-mental organizations oriented to the equality of gender and social inclusion that are part of effort articulation.

Documents, minutes, agreements.

Contract, bills, delivering certificates, photos, list of attendance, workshop mi-nutes, didactical material, agreements, other.

Lack of interest, acts of nature, fortuitous.

Lack of interest, acts of nature.

At the end of 2014 it is proposed a mapping on the status of the entre-preneurship financing chain.

At the end of 2015, two (2) strategies will be designed and implemen-ted to increase financial resources of entrepreneu-rial support.

At the end of 2016, one platform for the articu-lation and institutional strengthened (regional network and cloud) will be created.

At the end of 2014, there is a strategic partner-ship with CECC/SICA, AUPRICA, CSUCA for the implementation of the actions to promote entrepreneurship culture in the region.

At the end of 2016, a re-gional brand to promote the different types of entrepreneurship favora-ble to social inclusion has been designed.

Cooperation Agree-ment and working plan agreed between the parts.

Brand for Entrepreneurs-hip designed.

Number of initiatives of strengthening of human talent with gender equity.

Minutes, photos, lists of attendance, satisfaction surveys, approval certi-ficates, disbursements support, audit reports.

Entrepreneurship brand.

Lack of interest, force majeure, unforseen situations.

Deliverable 2:

Deliverable 3:

Deliverable 4: Innovation and entrepreneurship mentality and culture strengthened from the training of human talent specialized and the brand of regional entrepreneurial with gender approach.

Design and implemen-tation of a regulation and political model that promotes entrepreneur-ship in the countries of the region. Implementation of the supporting industry strengthening program with a pilot on opportu-nity entrepreneurship.

N° of institutions and opportunity entrepre-neurial strengthened.

Contracts, starting cer-tificates, final report of contract.

Good will, compromise, acts of nature.

At the end of the period, a sector pilot will be implemented with at least 100 opportunities entrepreneurial of the supporting industry strengthening program.

After 9 months of the Project execution a pilot with one hundred entrepreneurs by oppor-tunity of the strengthen program of the support industry will be imple-mented.

At the end of 2015 a financial instrument will be designed and valida-ted to promote entre-preneurship, especially of those collective exclu-ded, supporting them

No of institutions and entrepreneurs by op-portunitystrengthen.

N° of public and private institutions included in the new financial instrument.

Contracts, initial acts, final contract report.

Contracts, starting certi-ficates, final report.

Will, commitment, force majeure, unforseen si-tuations.

Good will, commitment, acts of nature.

A01

A02

A03

Strengthen program implementation in the support industry with a pilot of oppor-tunity entrepreneur-ship.

Design and valida-tion of a regional instrument to promo-te entrepreneurship with gender ap-proach.

Activities Deliverables 1: Models designed and implemented that promotes the supporting industry.

Activities of Deliverable 2: Different sources of resources for the finance of entrepreneurship supporting programs.

Strengthened educa-tional system (with tools and contents), articulated in terms of entrepreneurship and innovation.

Effectiveness level = (Goal Achieved)(Timeframe planned) / (Goal programmed)(Real Time)Development of con-tents focused to the elimination of sexual division, in terms of quality and quantity di-versity of new ventures.

Contracts signed, starting minutes, documents.

At the end of 2016 there will be entrepreneurship and innovation tools and curricula with gender ap-proach, for the use of the educational system and professional formation.

Deliverable 5:Acts of nature, fortuitous.

in their different needs in terms of gender, age, educational level,

At the end of 2015 it will be proposed a design of feasible mechanism of equitable financing for entrepreneurial persons.

At the end of 2014 the Regional Entrepreneur-ship Network will be institutionalized.

At the end of 2015 the region will have one web platform with new servi-ces for entrepreneurial.

Proposals of financing mechanisms feasible for entrepreneurship oriented to strategic needs of the different groups, especially of those excluded.

N° of institutions formally related to the Regional Entrepreneur-ship Network; increa-sing of the number of women participating in the network and taking decisions.

N° of new entrepre-neurship services offered through the web platform.

Number of initiatives to promote the participa-tion of women in the cloud.

Documents, institutional interest letters.

Agreement approved, meeting minutes, regu-lation.

Contract, starting certifi-cate, audit report.

Breaking up of regional stakeholders, low level of interest and political will.

Political will, acts of natu-re, fortuitous.

Acts of nature, fortuitous.

A04

A05

A06

Implementation of permanent process of innovative mecha-nisms for the finan-cing of diverse and inclusive entrepre-neurship.

Implementation of the Regional Entre-preneurship Network.

Design and imple-mentation of new entrepreneurship services through a web platform in the cloud.

Activities Deliverable 3: Entrepreneurship promotion Institutions strengthened and articulated.


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At the end of 2016 the region will have a set of technologies, methodo-logies and knowledge management tools in entrepreneurship that will contribute to the promotion of an entre-preneurial culture.

At the end of 2016 it will be designed and posi-tioned one (1) entrepre-neurship regional brand.

At the end of 2016 there will be entrepreneurship tools for educational institutions hoping that these will introduce entrepreneurship values in the training from a perspective of equal op-portunities for all people, no matter their gender, age, ethnic group, etc.

At the end of 2017 at least two (2) institutions of technical training in each country have incor-porated in their curricula agenda, entrepreneurs-hip contents to promote it in their institutions.

N° of technological transfers developed to entrepreneurship de-velopment institutions. Equal participation of men and women in those transfers

Number of events to promote entrepre-neurship with gender approach.

N° of entrepreneurship tools developed for educational institu-tions.

% of educational ins-titutions that imple-mented innovative and inclusive contents in their entrepreneurship curricula.

Lists of attendance, pho-tos, contacts, starting certificates, final report of contract.

Contract consultancy, bills, final report, photos

Certificate of satisfaction surveys.

Minutes of approval, ac-companiment minutes.

Lack of interest of the institutions that support the entrepreneurship; acts of nature, fortuitous.

Lack of international articulation, lack of consensus.

Lack of interest of educa-tional institutions, acts of nature, fortuitous.

Lack of interest, acts of nature, fortuitous.

A07

A08

A09

A10

Human Talent trained in innovation and en-trepreneurship with gender approach in supporting and edu-cational institutions.

Design and imple-mentation of an entrepreneurship regional brand.

Inclusive Entrepre-neurship tools, deve-loped for the educa-tional institutions.

Entrepreneurship curricula contents de-signed for educatio-nal institutions with gender approach.

Activities Deliverable 4: Mentality and culture of innovation and entrepreneurship strengthened from the training of the human talent specialized and the regional entrepreneurship brand.

Activities Deliverable 5: Educational system strengthened (with tools and contents), articulated according to entrepreneurs-hip and innovation.


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6. Conclusions and

Recommendations

6.1 Conclusions

All the entrepreneurship matters and it has to be approached with the same level of institutional diligence, which is to say, that the entrepreneurship by substance, tradi-tional entrepreneurship, dynamic entrepreneurship and high impact entrepreneurs-hip.

The main problem of entrepreneurship at regional level is the institutional disarticu-lation, the public and the private sectors as well, which generates segregation and enforcement duplicity, in attention to interest users, institutional self-sufficiency, less integral or adjusted initiatives to the real need that allow its potentiation, minimiza-tion of the national impacts.

There is not a clear methodology of institutional articulation in each country, therefo-re it is necessary to implement a process of methodological normalization, hopefully supported in the open government.

To design and/or strengthen the entrepreneurship support programs, it has to start from a centered design in the user user population (from the demand, that is to say, co-created with the user entrepreneurs) and not from the offer.

The countries have lacked a shared vision to long term in the entrepreneurship theme, which has difficult the group actions, this regional strategy is converted in the first

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step given by the region tending to harmoni-ze and coordinate forces in the thematic with others related like gender equality, which potentiates its impact in the socioeconomic development of the people and its societies.

The main challenge the region and the gover-nments has got is to design programs for the effective creation of innovation and entrepre-neurship culture and mentality. This requires the information and knowledge of develop-ment about how to operate this empty and how to overcome them.

The entrepreneurship is focused in the elabo-ration of the academic business plan (theo-retical), and not in the real validation in the market of business models and the possible conditions such as survival and care, educa-tion, socioeconomic and the factors that li-mit such as gender, age and ethnics, among others (practical).

The educational system does not count with a clear content strengthening strategy, tools and the human capital to promote the inclu-sive and innovation entrepreneurship culture.

Next, a series of recommendations distributed by strategic axis are presented:

Strategic axis Recommendations

SUPPORT INDUSTRY

FINANCING

Establish clear and defined guidelines of strategic roles of each group of institutions of the support group based in a deliberated de-sign of the entrepreneurship environment in each of the countries. This can achieve with focalized calls from the ministries to streng-then the support institutions.

Create institutions (new or existent) that cover the development processes of fast and economic prototypes with innovation content.

Promote the entrepreneurship support in all the phases and stages-to ensure new inclusive and self-sustainable business in the market

Create pre-seed capital low cost instruments to finance the develo-pment of functional and commercial prototypes, just like concept proofs, the intellectual property and strengthen entrepreneur team processes, including the facilitation of survival and care services of work force.

Stimulate the private sector to invest resources of enterprise’s social responsibility in mixture entrepreneurship programs, especially tra-ditional excluded groups.

Link the microcredit in the entrepreneurship processes with the new focalized processes to the needs of the different population groups in socioeconomic disadvantage.

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3

4

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INSTITUTIONALARTICULATION

MINDSET AND CULTURE

EDUCATIONALSYSTEM

Apply the open government to articulate the national, local and/or terri-torial entrepreneurship environment.

Generate and unify the institutional offer information in a non-sexist, public and open information system.

Institutionalize the national webs and the national entrepreneurship with a strategy, politic and /or an integral law in each country, with the concourse of involved sectors such as equality organizations and me-chanisms.

Develop diverse strategies to communicate the fundamental role that the entrepreneur meets in the society, such as art, BTL-below the line, viral campaigns, social networks, memes, digital marketing, etc.

Involve the entrepreneur families in the process of changing culture, including the elimination of the gender roles and promoting the co-responsibility.

Involve the entrepreneurship in the presidential, mayor, and massive communication speeches.

Develop information about the gender condition in the entrepreneurs-hip environment, realizing the main gaps and the needs of gender that allow the normative, instruments and the won entrepreneurship in a sustainable form.

Promote the design thinking and the effectual approach in the schools and universities.

Promote the culture of innovation including teachers and students.

Develop innovation, non-sexist and entrepreneurship tool boxes to schools and universities.

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BIBLIOGRAPHYDiagnosis about entrepreneurship in Central America (2010), Central American Economic In-tegration Bank (BCIE) with the German Develo-pment Bank (KFW), the Center for promotion of the micro and small enterprise in Central Ameri-ca CENPROMYPE).

What Central America can do to support Dy-namic Entrepreneurship its (new) growth, P3Ventures in coordination with the Central American Federation of Chambers of Commer-ce (FECAMCO ) and the Latin American Develo-pment Bank (LADB).

Canvas Exercise for Ecosystems co-built with the countries in the region under the facilitation of the Colombian Ministry of Commerce, Indus-try and Tourism team (MCIT).

Babson Entrepreneurship, Ecosystem Project.

Dynamic entrepreneurship learning guide, BID/FOMIN2008.

“The Culture Transformation of Innovation and Development (I+D)- The Executive Chiefs must act to make new models of profitable businesses available”. Navi Radjou, 2006.

“Dare to be different”, IBM Institute for Busi-ness Value, 2006.

“Business Model Innovation: Creating Value in Times of Change”, Chistoph Zott/IESE Busi-

ness school – Navarra University, and Raphael Amit, Wharton School University, Pennsylvania.

Entrepreneurship Effect Approach, Saras Sa-rasvathy.

The Orchestration Strategy Approach, Rue-las-Gossi.

Design thinking, Innovation and other stran-ge ideas, Juan Sobejano. Recompilation of arti-cles and ideas according to innovation and dis-ruptive processes.

The Ten Faces of Innovation, Kelley Tom and Litt-man Jonathan.

The Canvas Model for the design of business models.

Product development model under the lean startup approach, Eric Ries.

Gary Hamel – the lab management, Tim Brown – IDEO, CK Prahalad – Michigan University, Peter Senge – MIT, Http://www.managementexchan-ge.com/moonshots.

IESE Business School and the iNNpulsa-Bancol-dex program.

European Venture Capital Association-EVCA. http://www.evca.eu/toolbox/glossary.

National Venture Capital Association – NVCA – United States of America.

Private Capital Funds. Industry fundaments.

Bancolex 2008. Page 15.

Colciencias. The technology based enterpri-se and its relation with the capital investment funds. 2008.

FOMIN. Learning Guide: Dynamic Entrepreneur-ship. http://www.iada.org.

The entrepreneur culture promotion 1014 law, 2006, from Colombia.

Global New Delhi enterprise incubators associa-tion meeting, October 2004.

Diagnosis and participative action plan in the process of perspective of gender mains-treaming for the promotion of the micro and small business frame in Central America (CENPROMYPE). Mabelle Figueroa Ramos and Marcela Rodriguez Gonzalez. April 2012.

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GLOSSARY duals which produce and associate business ideas, abilities, financing and non-financing sources which result in dynamic enterprises. Then, the ecosystem no-tion, applied to the case of Dynamic Entrepreneurship, gives a frame of thinking that allows interventions with the purpose of stimulating their appearing and development.

Entrepreneur30: It is a person with the capacity to innovate; understanding this as the capacity of generating goods and services in a creative, methodic, ethic, responsible, and effective way.

Entrepreneurship: A way of thinking and acting, oriented towards the creation of wealth to take advantage of the present opportunities in the environment or to satisfy the personal need of income generating value in the economy and in the society.

Deal flow31: It is the quantity of business initiatives that are coming in a time unit.Business incubator: “A business incubator is a physical space or facility that has the capacity of accommodating the process of incubation of an enterprise. The business incubation is a development process business, economic and social kind whether public or private designed to nurture the business ideas or small enterprises in their development stages, through a integral business support program, which help them to establish and accelerate their growth as well as their success”32.

Innovation: The innovation is the successful assimilation and exploitation of so-mething new in the economic and social means, in a way that it provides new solutions to national and regional problems and allows responding to the needs of the society and the private sector

Opened Innovation: The open innovation is a paradigm which assumes that en-terprises can and must use external ideas, just like internal ideas and paths inside and outside the market, since enterprises look for advancing in technology. The concept of opened innovation is based on the idea that enterprises are not ca-pable of approaching on their own means the process of innovation. They must count with external resources (intellectual property, ideas, product, people, and institutions) that must integrate in their own innovation chain.

Viable minimum product33: The VMP is that version of a new product that allows a team to pick up the maximum quantity of validated learning over our clients with the minimum effort. It avoids us to build a product that nobody wants and

Ecosystem canvas: Also known as RAINFOREST CANVAS or canvas model for the ecosystem of Greg Horowitt, where the leaders, interest groups, regulation fra-mes, resources, platforms, heroes, infrastructure, community and culture were established.

Risky capital: It is the capital designed to finance the growth, expansion and de-velopment of an enterprise, from the beginning of operations until de productor service achieves to penetrate in the market and starts its expansion stage.

Pre-seed capital24: It is the capital for the financing of the early stage from the conception of the business idea until the beginning of the business, especially designed for the development of prototypes, market proves, patents, and busi-ness equipment.

Seed capital: this capital is focused on the stage from the elaboration of the business plan to the start of the business. “Capital oriented to the first stage of business, it is used to investigate, test, and develop an initial concept”25. “Inves-tment before there is a product or an organized real enterprise”26. “First round of the capital for an enterprise that is just starting. The capital seed, usually takes the form of a loan or an investment of preferential stocks or exchangeable bonds, even though sometimes it is done as ordinary stocks. The seed capital provides the new companies with the necessary resources for development and initial growth. This kind of investment is very risky due to the non-existence of records which evidence the development of the company, a product or service; there is no fund flow either. The mortality rate of this kind of projects is very high”27.

“The seed capital is the first stage of the investment mainly dedicated to the fi-nancing of the entrepreneurship before the start of the operation and prepara-tion of the launching of the enterprise, where the investment is focussed in ma-king the entrepreneurial ideaviable. Therefore, it is considered a high exposition to technology, commercial and finance risk “28.

Entrepreneurship ecosystem29: When understanding the entrepreneurship ecosystem as a business community, supported by the public law context and business practice, and formed by a base of interacting organizations and indivi-


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maximizes learning for each capital invested.Gender inequality: Distance and/or asymmetry among men and women. Wo-men generally count with a limited access to wealth, charges to make decisions, well-paid job, unequal and discriminatory treat just for the fact of being women. The gender inequality is related to economic, social, political and cultural factors, whose evidence and magnitude can be adapted through the gender breaches34.

Gender Equality35: it is a justice principle, related to the equality idea which substantives and recognizes the social differences”. It is based on the recognition of women as human rights subjects. The equality right requires the states to im-plement Specific and concrete actions to eliminate real and probed discrimina-tion towards women so they can enjoy their human equality rights36.

Gender equality: the gender equality consists in standardizing the existent op-portunities to distribute them in a fair way among both sexes. Men and women should count with the same development opportunities. The state, therefore, has to guarantee that the resources are assigned in a symmetrical way37.

24 Adapted from the IESE Business School and the iNNpulsa-Bancoldex program.25 European Venture Capital Association-EVCA. http://www.evca.eu/toolbox/glossary26 National Venture Capital Association-NVCA – United States of America. http://www.nvca.org27 Private Capital Funds. Industry fundaments. Bancoldex 2008. Page 15.28 Colciencias. The technology base enterprise and innovation and its relation with the investment capital funds.2008.29 FOMIN. Learning enterprise: Dynamic Entrepreneurships. http://www.aidb.org30 The entrepreneurship culture promotion 1014 law, 2006, from Colombia.31 FOMIN. Learning guide: Dynamic Entrepreneurship. http://www.iadb.org32 Global New Delhi enterprise incubators association meeting, October 2004.33 Eric Ries34 INMUJERES (2012) “Gender Glossary), Mexico DF, 192 pp.35 Ibíd.36 FACIO, ALDA (2012) Equality note, PNUD, Mexico DF.

37 Ibíd.


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ANNEXES

Annex 1.Ranking according to the Global Compe-titiveness Index 2013-12 (among 144 countries)

Dimensions/ FactorsCosta Rica El Salvador Guatemala Honduras Nicaragua Panama

DominicanRepublic

GCI 2012-2013 57 101 83 90 108 40 105

61 91 84 86 115 49 110

56 82 78 91 112 53 101

67

53

74

65

57

99

134

72

103

90

88

124

75

77

95

101

118

101

80

96

104

114

106

101

89

50

69

37

53

69

111

126

105

105

106

GCI 2011-2012 (de 142)

GCI 2010-2011(de 139)

Basic requirements (40.0%)

Institutions

Infrastructure

Macroeconomic environment

Health and Primary Educa-tion

60 103 81 102 119 50 93Efficiency Enhancers (50.0%)

41

62

52

101

105

74

121

81

104

66

90

41

106

92

134

51

110

119

109

116

69

35

89

23

97

101

107

96

Higher educationand training

Property market effi-ciency

Work market efficiency

Finance market develop-ment

46

81

102

83

87

73

97

88

116

108

36

79

78

65

Technological en-listment

Market size


66

35 107 70 91 116 48 105Innovation and sophistica-tion factors (10.0%)

34

38

82

128

57

90

77

112

114

116

50

45

80

118

Business sophistication

Innovation

Source: Global Competitiveness Report 2012-2013

Annex 2. Central America and Dominican Republic Easiness to do business index

Income Level Medium low

3,690

0.4

105

158

9

44

51.9

0.0

7,660

4.7

110

128

12

60

11.4

0.0

3,480

6.2

113

139

8

17

46.7

2.9

2,870

14.8

93

172

12

40

48.1

20.9

1,970

7.8

125

155

13

14

45.9

15.7

1,170

5.9

119

131

8

39

100.6

0.0

7,910

3.9

61

23

6

7

8.8

0.0

5,240

10.1

116

137

7

19

17.3

49.3

Medium high Medium low Medium low Medium low Medium low Medium low Medium high

Belice Costa Rica El Salvador Guatemala Honduras Nicaragua Panama DominicanRepublic

National Gross Income (US$)

Population (Millions)

Start a business (rank)

Procedures (num-ber)

Time (days)

Cost (% per capita income)

Minimum capital(% per capita income)

Facility of doing business (aggre-gated index)


67

21

58

8

8

8

91

66

60

97.9

400.5

136

4.8

128

45

18

5

5

160

62

20

154.7

256.8

46

3.4

146

131

33

7

5

157

78

31

162.5

554.8

56

3.8

94

34

11

4

4

158

39

23

500.4

594.8

20

0.8

65

117

13

8

7

94

33

23

274.3

997.9

92

5.7

154

129

16

6

8

218

70

49

362.0

1526.6

123

4.2

73

16

17

5

8

101

35

28

83.7

13.6

107

5.3

108

122

14

7

7

216

87

60

72.7

322.3

110

3.7

Construction permit (rank)

Get Electricity (rank)

Property registra-tion (rank)




Time (days)

Time (days)

Time (days)

Cost (%per capita income)




68

60

4.8

20

3.4

31

3.8

23

0.8

23

5.7

49

4.2

28

5.3

60

3.7

Time (days)


7

0

129

0.0

0.0

3

6

83

28.3

82.8

5

6

53

26.5

83.7

8

6

12

18.0

8.7

8

6

12

20.7

32.9

3

5

104

10.8

29.5

5

6

53

0.0

57.9

3

6

83

44.1

60.0

Get Credit (rank)

Legal right index (0-10

Credit index informa-tion deepness (0-6)

Public registration cover (Adult%)

Private bureau co-ver (% of adults)

3

128

2

169

3

169

3

158

0

169

4

100

3 5

82 100Investors’ protection (rank)

Extent of disclosure index (0-10)


69

136

8

46

5

56

5

20

4

92

7

123

8

107

8

110

7

Property register (rank)


Annex 2. Central America and Dominican Republic Easiness to do business index

Belice Costa Rica El Salvador Guatemala Honduras Nicaragua Panama DominicanRepublic

Extent of director liability index (0-10)

4

6

4.3

45

29

147

33.2

102

6

19

1,355

2

3.0

125

23

226

55.0

51

6

13

1,020

6

3.0

153

53

320

35.0

80

8

14

980

5

3.3

124

24

332

40.9

117

9

17

1,307

4

3.0

139

47

224

40.3

90

6

12

1,342

6

5.0

158

42

207

65.0

81

5

21

1,140

9

5.3

172

60

431

42.0

0

3

9

615

6

5.0

98

9

324

42.5

46

6

8

1,040

5 0 2 5 5 4 4

Ease of shareholder suits index (0-10)

Investors’ protec-tion index strength (0-10)

Payments (num-ber per year)

Time (Hours per year)

Total tax rate (ear-nings %)

External commer-ce (rank)

Export docu-ments (number)

Export time (days)

Export cost (US$ per container)

Tax payments (rank)


70

7

20

6

14

8

10

8

17

8

16

6

20

3

9

7

10

Import documents (number)

Import time (days)

1,600

169

30

51

1

892

23

27.5

64.0

1,020

128

128

40

3.5

852

15

24.3

22.5

980

71

89

34

4

786

9

19.2

27.8

1,425

96

109

31

3

1459

15

26.5

27.8

1,510

179

133

47

3.8

920

15

35.2

19.4

1,245

55

80

37

2.2

409

15

26.8

36.0

965

125

110

32

2.5

686

25

50.0

27.5

1,150

84

156

34

3.5

460

38

40.9

8.7

Import cost (US$ per container)

Contract accom-plishment (rank)

Insolvency resolu-tion (rank)


Time (years)

Time (days)

Cost (% of estate)

Cost (% of clai-ming)

Recovery rate (cents per dollar)

Source: IFC-Banco Mundial. Doing Business 2013. The ranking isbetween 185 world economiesand the information is from June 2012.


71

Source: Owned elaboration based on the Economic World forum. Global Competitiveness Report 2012-2013. Based in the qualification in Annex 4.

Annex 3. Ranking of Main Problems (1 the most serious 16 the slightest)

Governmental Inefficiency

Problem

4

7

3

14

2

10

6

5

11

3

1

2

9

15

5

10

11

6

2

1

8

5

3

10

11

6

14

2

1

4

10

9

6

5

7

12

5

7

13

3

2

4

11

8

10

1

4

11

3

11

10

9

11

5

1

6

3

5

10

11

4

9

11

1 4 4 3 1 2 2

Costa Rica El Salvador Guatemala Honduras Nicaragua Panama DominicanRepublic

Corruption

Crime & Robbery

Work force with inadequate edu-cation

Inadequate infras-tructure

Policy instability

Tax rates

Tax regulations

Inflation

Financing Access


72

Annex 4. Main Problems

Crime and Rob-bery

Problems

9.6

7.0

21.2

3.9

6.9

2.9

2.7

0.0

5.3

5.2

2.2

5.8

14.0

12.6

11.3

11.1

2.2

9.5

2.0

4.3

5

4.2

4.0

3.2

4.0

17.1

9.4

2.7

6.8

1.1

2.9

0.8

4.6

2.5

7.6

2.5

9.7

16.4

11.7

5.9

5.2

2.9

3.5

0.9

5.0

1.7

3.5

7.6

3.3

9.6

14.8

9.8

5.3

4.0

8.7

5.1

1.1

1.5

11.2

3.9

3.1

16.5

15.8

3.7

3.1

8.0

5.6

0.9

7.7

4.9

11.3

4.4

9.9

16.4

13.3

3.2

4.4

3.2

4.5

0.4

6.0

2.7

9.6

9.8

5.5 18.4 25.5 20.2 5.4 10.4 8.7

Costa Rica El Salvador Guatemala Honduras Nicaragua Panama DominicanRepublic

Financing access

Corruption

Policy instability

Tax regulations

Inflation

Low work ethics among workers

Government ines-tability

Restrictive work regulation

Insufficient inno-vation capacity

Work force with inadequate edu-cation

Tax rate

Governmental influence


73

2.3

18.6

0.4

0.4

0.1

10.6

0.1

4.8

3.4

12.3

1.3

3.1

1.4

3.8

Poor public health

Change regula-tion rate

Inadequate infras-tructure

0.9 0.8 1.6 0.9 0.7 0.2 2.4

Source: World Economic Forum. Global Competitiveness Report 2012-2013. The inter-viewed are asked to select the top 5 problems in the country.


74

KEY FACTORS ACRONYM

1 SICA region normative and political model.

Out of Opportunity entrepreneurship promotion plan

Financing mechanism

Financing instrument innovation

‘Entrepreneurship strategic regional Web’

“CLOUD” entrepreneurship service platform

Training regional program

Regional entrepreneurship identity

Creativity and innovation-education tools

Innovation and entrepreneurship curricular con-tents

2

3

4

5

6

7

8

9

10

NORM

OPORT

FINAN

INSTR

RED

NUBE

ENTREN

IDENT

HERRA

CURRIC

Annex No. 5Importance-Governability Analysis

The Importance Governability analysis IGO, allows to prioritize the most important factors for the interest groups surrounding the regional agency, analyzing the level of governability (control or domain) of key factors, which determine the level of facility in the implementation of proposals.

IMPORTANCE: It is the pertinence or coherent rela-tion that exists between the proposed action (varia-ble object of study) and the objectives and set goals (variable action field). It is necessary to take into ac-count that the dimension is assigned to each action or to each variable a score (complete number) which allows to visualize the high or low grade of pertinen-ce.

GOVERNABILITY: It is the control or domain that the members of the regional agenda can have above each action or variable. This dimension is classified having as a base some control criteria above the ac-tions or variables, which are:

Strong: 5

Moderated: 3

Weak: 1

Null: 0

In the work tables in the countries of the region, 2 prospective analysis tools were applied for the cons-truction of the REGIONAL ENTREPRENEURSHIP STRA-TEGY AGENDA, among which is the IGO MATRIX

(Governability-importance) to establish the level of incidence that each table will have in front of its prior factors, just like a personal prospective interview.From the IGO MATRIX application with all the partici-pant people in the process, it was possible to identify the initiatives that have a low control power in the short term due to the economic, political, sociable or cultural factors, for which, will be design strategies to initiate the activities from now.


75

Next, it is presented the short, medium and long term initiatives, according to the governability level:

Governability ranking

Short term (High governability):1. “Entrepreneurship strategic regional web”2. Out of Opportunity entrepreneurship promotion plan 3. Regional entrepreneurship training program4. Normative and political regional model

Medium term (Beginning from today – medium governability)5. Entrepreneurship regional identity6. NUBE entrepreneurship services platform7. Creativity and innovation – education instruments

Long term (Beginning from today – low governability)8. Financing innovation instruments9. Curricular innovation and entrepreneurship contents 10. Financing regional mechanism

Next, the perception results of the participants res-pect to the control level or governability above the ten factors are presented:

FUTURE CALLENGES

OTHERS OTHERS

KEY FACTORS

NORM 3,25 4,41

FACTOR GOVERNABILITY IMPORTANCE

FINAN 1,81 4,22

NUBE 3,06 3,88

HERRA 2,69 4,09

OPORT 3,50 4,00

INSTR 2,25 4,47

ENTREN 3,44 4,16

CURRIC 2,19 3,84

RED 3,75 4,09

IDENT 3,25 3,91

GENERAL 2,92 4,11

0,0

1,0

2,0

3,0

4,0

5,0

FINAN

CURRIC

INSTR

NUBE

HERRANORM

RED

NUBENORM ENTRENTOPORT IDENTFINAN HERRAINSTR CURRICRED

0 1 2 3 4 5

IDENT

ENTREN

OPORT

IMPO

RTA

NCE

GOVERNABILITYSource: Self madeSICA EMPRENDE

STRATEGY

76

In the last chart, the initiatives to the right have higher realization power in a short term (Yellow) thanks to the human, physical and financial resources that are available in the participant countries. That is to say, that the initiatives that are located in the green chart are planned in medium and long term.

However, it is worth to check in the ten (10) strategic initiatives the level of importance according to the perception of the participants on the work tables.

Importance Ranking

It is necessary to clarify that, without exception, the ten (10) strategic initiatives are important to develop the entrepreneurship in the region without exception. Next, the importance order of the strategic initiatives is presented (according to the participants):

1. Finance instrument innovation.2. Normative model and political region.3. Financing mechanism.4. Regional Training Program (advisors and teachers).5. “Strategic Regional Entrepreneurship Web”.6. Creativity and innovation – education Tools.7. Opportunity entrepreneurship plan promotion (Entrepreneurship).8. Regional Entrepreneurship Identity (brand).9. NUBE entrepreneurship services platform.10. Curricular innovation and entrepreneurship contents.


77

Annex No.6

Movement-Dependence Analysis

The Movement-Dependence analysis allows to iden-tify the variables or factors that directly affect the development of other factors, creating interdepen-dence relationships under the look of the system.

Factor classification:

1. Power: High movement and low dependence2. Conflict: High movement and high dependence3. Autonomy:Low movement and low dependence4. Exit: Low movement and high dependence

1. POWER: Here are all the factors that influence and affect directly and with a big proportion above other regional entrepreneurship agenda factors. These factors are keys because they affect directly in the impact and positioning of the entrepreneurship.

2. CONFLICT: Here are the factors that influence other factors, but at the same time, are influenced by other factors. These factors are interdependent; therefore, they have a “conflict”.

3. EXIT: Are factors effect from others, therefore, efforts should not be focused towards those varia-bles.

4. AUTONOMY: Here are other autonomy factors, that are to say that they don’t depend on other fac-tors, but at the same time don’t have any incidence above any other variable.

As it is shown in the next graphic, the move-depen-dence matrix, can be visualized as:

The most movement factors are:• Normative model and regional policies.• “Regional Strategic Entrepreneurship Web - RERE”

The most dependent factors are:

• Opportunity Entrepreneurship Promotion Plan (Entrepreneurship).• Regional Training program.

The strategic factors are:• Plan to promote entrepreneurship upon opportu-nity (entrepreneurial).• Training Regional Program

POWER ZONE

AUTONOMY ZONEDEPENDENT OR EXIT ZONE

LINK OR CONFLICT ZONE

0%

2%

4%

6%

8%

10%

12%

INSTRNUBE

HERRA

NORMRED

NUBENORM ENTRENTOPORT IDENTFINAN HERRAINSTR CURRICRED

0 12

ENTREN

OPORT

MO

VE

DEPENDENCE

FINAN

CURRIC

IDENT

In the past graph, the strategic initiatives that are located in the red box mean that they are highly move but at the same time, are highly dependent from the other stra-tegic initiatives. In the green box are located the high move level initiatives but not depending on other initiatives, that means, are low dependent.


78

Source: Own made

Editorial Team:Carmen Castro BlandonLigia CarmonaIveth Merino (Design and Layout)

Printing: Print StationFIRT EDITION: SEPTEMBER 2013 (El Salvador)Print run: 100 EXAMPLES