Fitzsimons

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Entrepreneurship and Government Policy:An International Perspective

Based on the research of the Global Entrepreneurship Monitor

Paula Fitzsimons

National Coordinator of GEM in Ireland andMember of Executive Committee GEM Global


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Entrepreneurship and Government Policy

Moving higher up the policy agenda

Its merits lauded by policy makers

The benefits of entrepreneurship arenow well accepted.


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The need for comprehensive actionfostering entrepreneurship isincreasingly being recognised by

political and economic actors as oneof the keys to unlocking greateremployment, growth andcompetitiveness in Europe.

-EU Commission 1998


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Benefits of Entrepreneurship

EU Action Plan 2004:GrowthFirm survival

InnovationEmployment creationTechnological changeProductivity increasesExportsVehicle for personal developmentHarness social cohesion


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Good policy must be based on goodinformation

The challenge to bridge theinformation gap

Entrepreneurship and Government Policy


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A Personal Challenge

Review the 20 year old EnterpriseDevelopment Programme

Then and now - a greatly changedenvironment

Draw on the experience of othercountries, as appropriate


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Many questions

How entrepreneurial is Ireland?Who are the entrepreneurs?What are their concerns?How many have growth aspirations?What are we already doing well?What badly?What can we learn from othercountries?


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Global Entrepreneurship Monitor

1. Does the level of entrepreneurialactivity vary between countries,and if so, to what extent?


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2. Does the level of entrepreneurialactivity affect a countrys rate ofeconomic growth and prosperity?


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3. What makes a countryentrepreneurial?


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4. What can governments do to affectthe level of entrepreneurship ?


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Definition of an entrepreneur:

Any type of start -up entrepreneurialinitiative, including self-employment


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The level of entrepreneurship differsbetween countries and between

regions


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Total Entrepreneurship Activity (TEA) 2003


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TEA in Selected Countries 2003


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Compared to the US, there is lessentrepreneurial dynamism in theEuropean Union. Europeans are lessinvolved than Americans in newentrepreneurial initiatives andEuropean businesses do not grow as

much as in the US - EU Green Paper on Entrepreneurship 2003


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Entrepreneurial Activity RatesEurope, Ireland and US+3


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Does entrepreneurship vary over time?

The level of entrepreneurial activitychanges overall from time to time

The general rank order of the various

countries tends to remain stable.


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Who are the Entrepreneurs?Gender

Age

Socio/economic background

Motivation

Social networks


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TEA Rates by Gender


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Tackling the Gender Imbalance

Providing tailor made support forwomen and ethnic minorities:

Identify good practicesImprove access to finance andDevelop entrepreneurial frameworks

-EU Action Plan 2004


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What sort of businesses are beingstarted?

Sector

Employment Size

Growth orientation

Degree of innovativeness


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Issues for Europe

How to produce more entrepreneurs?

How to get more firms to grow?

-EU Action Plan 2004


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Five Strategic Policy Areas

i. Fuelling entrepreneurial mindsetsii. Helping entrepreneurs handle risk

iii. Gearing entrepreneurs for growthand competitivenessiv. Improving the flow of finance

v. Creating a more SME friendlyregulatory and administrativeframework


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EU Faces Double Challenge

Co-ordination and focus

Need to tailor to meet differentneeds:(i) groups of entrepreneurs, and

(ii) different countries and regions


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GEM Key Informants

Capturing the views of entrepreneursand experts

1,300 from 31 countries

Standard questionnaire

Personal interview


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GEM Key Informants

Drill down within national context

Understand the factors that limit andcontribute to entrepreneurship

Facilitate learning from theexperience of others


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Role of Government

How effective are Governments policyand programmes?


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Government Policy

Rhetoric, not effective action

Lack of co-ordination

Tax burden

Bureaucracy

Government regulations


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Government Programmes

Assistance difficult to find

Multiple contacts required

Staff not suitable


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Influencers on level ofentrepreneurial activity

Entrepreneurial framework conditions

Opportunity recognition

Capacity (skills and motivation)

Social networks


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Environment for Entrepreneurship

Role of culture and social norms

Role of the media

Economic context

Demographic context

Role of Government


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More than good policies..

We need local heroes who will createemployment and bring economic

prosperity and rejuvenation into theircommunities.

-Barry Gardiner


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GEM and Policymakers

Annual Monitor

International comparisons

Recommendations of key informants

Facilitates learning from othercountries


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Want to learn more?

www.gemconsortium.org

Annual executive global reports

National reports

Contact details
http://www.gemconsortium.org/http://www.gemconsortium.org/


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