Presentation on theme: "INTERNATIONAL SEMINAR OF THE ENTREPRENEURSHIP NATIONAL PUBLIC POLICY"— Presentation transcript:
1 INTERNATIONAL SEMINAR OF THE ENTREPRENEURSHIP NATIONAL PUBLIC POLICY UNCTAD’s Entrepreneurship Policy Framework and Policy GuidanceBrasiliaJune 26, 2012Fiorina MugioneChief, Entrepreneurship SectionDivision on Investment and Enterprise
2 It carries out 3 main functions: The organization works to fulfill this mandate by carrying out three key functionsIt functions as a supported by discussions with experts and exchanges of experience, aimed atIt undertakes research, policy analysis and data collection for the debates of government representatives and experts.It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.The organization works to fulfill this mandate by carrying out three key functionsIt functions as a supported by discussions with experts and exchanges of experience, aimed atIt undertakes research, policy analysis and data collection for the debates of government representatives and experts.It provides technical assistance tailored to the specific requirements of developing countries, with special attention to the needs of the least developed countries and of economies in transition. When appropriate, UNCTAD cooperates with other organizations and donor countries in the delivery of technical assistance.The United Nations Conference on Trade and Development (UNCTAD), established in 1964Promotes the development friendly integration of developing countries into the world economyIt carries out 3 main functions:Forum for intergovernmental deliberations and consensus buildingUndertakes research, policy analysis and data collectionProvides techincal assistance
3 Entrepreneurship Programme 3 main areas of work:Research, analysis and consensus building. Policy briefs, roadmaps, action plansEMPRETEC: UNCTAD’s flagship entrepreneurship programme helps promising entrepreneurs to start, grow and develop their businesses. Focus on entrepreneurial behavioursBusiness Linkages between large corporations and domestic suppliers.
4 Entrepreneurship policy itself is part of wider enterprise development and private sector development policiesPrivate Sector Development PolicyFocus on improving growth prospects of SMEs, providing industrial direction,building business infrastructure…Policies to improve the general economic and business climateEntrepreneurship PolicyFocus on unleashing entrepreneurial capacity and facilitating start-ups
5 The UNCTAD Entrepreneurship Policy Framework comprises 6 areas that have a direct impact on entrepreneurial activity
6 Policy objectives Recommended actions Identify country specific challengesMap the current status of entrepreneurship in the countryIdentify country-specific entrepreneurship opportunities and challengesb. Specify goals and set prioritiesDefine strategies to achieve specific goals and reach specific target groupsDevelop and prioritize actionsc. Ensure coherence of entrepreneurship strategy with other national policiesAlign entrepreneurship strategies with overall development strategy and other private sector development strategiesManage interaction and create policy synergies
7 Policy objectives Recommended actions d.Strengthen the institutional frameworkDesignate a lead institutionSet up an effective coordination mechanism and clarify mandatesEngage with the private sector and other stakeholdersEnsure business-like service deliverye. Measure results, ensure policy learningDefine clear performance indicators and monitor impactSet up independent monitoring and evaluation routinesIncorporate feedback from lessons learnt
8 Examples of selected policies and initiatives: Costa Rica: National Entrepreneurship Policy ( )Rwanda: Entrepreneurship is embedded in the country’s Economic Development and Poverty Reduction Strategy ( )South Africa: The City of Johannesburg developed a Youth Entrepreneurship Strategy and Policy Framework (2009)Costa Rica: The country’s National Entrepreneurship Policy ( ) identifies support for youth and women entrepreneurs, preservation of the environment, intercultural integration and regional brand development among its priorities. The entrepreneurship strategy identifies key policy areas of action, in accordance with an assessment of the barriers to entrepreneurship identified. These include: fomenting entrepreneurship, institutional articulation, information and monitoring, financial instruments for entrepreneurs, guidance of entrepreneurs, innovation and technological development for entrepreneurs and gearing entrepreneurship towards exports.(Rwanda: In Rwanda, entrepreneurship falls under the country’s SME policy and the Rwanda Economic Development and Poverty Reduction Strategy ( ). Fostering entrepreneurship also features prominently in Rwanda’s “Vision 2020”, one of whose key long term objectives is to create a productive middle class and foster entrepreneurship.(South Africa: In South Africa, high unemployment among the youth is the government’s major concern. Accordingly, government entrepreneurship services and resources can be found under the National Youth Development Agency, in the Ministry of Economy. This is also the case in Barbados, whose entrepreneurship strategy, the Youth Entrepreneurship Scheme (YES), is located under the Ministry of Education, Youth Affairs and Sports.(Malaysia: In its Vision 2020, and in the 10th Malaysia Plan the Prime Minister identifies entrepreneurship as a key element to generate economic growth and achieve the goals premised on higher income, inclusiveness and sustainability.Singapore: The Entrepreneurship Development AgencySPRING Singapore
9 Policy objectives Recommended actions Examines regulatory requirements for start-upsBenchmark time and cost of starting a business across countriesBenchmark sector- and region-specific regulationsSet up public-private dialogue on regulatory costs and benefitsBalance regulation and standards with sustainable development objectivesb. Minimize regulatory hurdles for business start-ups where appropriateReview and, where appropriate, reduce regulatory requirements (e.g. licenses, procedures, and administrative fees)Introduce fast-track mechanisms and one-stop-shops to bundle proceduresEnhance ICT-based procedures for businesses registration and reporting
10 Policy objectives Recommended actions c. Build entrepreneurs’ confidence in the regulatory environmentEnsure good governanceMake contract enforcement easier and fasterEstablish alternative conflict resolution mechanismsGuarantee property protectionReduce the bankruptcy stigma and facilitate re-startsd. Guide entrepreneurs through the administrative process and enhance the benefits of formalizationCarry out information campaigns on regulatory requirementsMake explicit the link between regulatory requirements and public services, including business support servicesAssist start-ups in meeting regulatory requirements
11 Examples of selected recommended actions: Indonesia: Regional “Ease of Doing Business“ Benchmarks allows for more easily comparable conditions within the same countryand creates peer pressure for reformMacedonia: One-Stop-Shop Business Registration enables entrepreneurs to register their business within 4 hours by visiting one office, obtaining the information from a single place, and addressing one employeeZambia: Electronic Case Management System provides electronic referencing of cases, a database of laws and public access to court recordsSome countries, including Indonesia and Vietnam, have set up similar benchmarks within their boundaries, comparing the ease of doing business between administrative regions. These internal benchmarks have the advantage that they compare regulatory requirements within the same national environment, where socio-economic conditions tend to be fairly similar. Also, political competition among provinces can be even tougher than between states. In fact, national media are often “naming and shaming” the poor performers, which has proven to be a strong driver of political reform. (UNCTAD Inventory)Macedonia: In January 2006, Macedonia has introduced a one-stop-shop system that enables investors to register their businesses within 4 hours. One can register a company in Macedonia by visiting one office, obtaining the information from a single place, and addressing one employee. This significantly reduces administrative barriers and start-up costs. The one-stop-shop system operates within the Central Register via 32 electronically integrated offices located throughout Macedonia. With the development of e-government services, company registration will soon be available online. The new registration procedure is simpler, decentralized and public oriented, allowing citizens to grasp new business opportunities much faster. (Zambia: In 2011 Zambia improved contract enforcement by introducing an electronic case management system in the courts that provides electronic referencing of cases, a database of laws, real-time court reporting and public access to court records. Additional judges were appointed and as many as 10 judges were trained in commercial law to improve the quality of judgements and cut the backlog of cases awaiting hearings. The standard of the court process is being strengthened further through a programme of education, including training on computer literacy and the court case management system for both Judiciary staff and lawyers. (World Bank Doing Business Report 2011)Panama: Panama Emprende is a new system for company registration, which allows people to open their business in a few minutes, in an electronic waywithout the need for queues or burdensome procedures.
12 Policy objectives Recommended actions Embed entrepreneurship in formal and informal educationMainstream the development of entrepreneurship awareness and entrepreneurial behaviours starting from primary school level (eg. Risk taking, teamwork behaviours,..)Promote entrepreneurship through electives, extra curricular activities, career awareness seminars and visits to businesses at secondary levelSupport entrepreneurship courses, programmes and chairs at higher education institutions and universitiesPromote vocational training and apprenticepship programmesPromote and link up with entrepreneurship training centresb. Develop effective entrepreneurship curriculaPrepare basic entrepreneurship skills education materialEncourage tailored local material, case studies and role modelsFoster interactive and on-line toolsPromote experiential and learning-by-doing methodologies
13 Policy objectives Recommended actions c. Train teachers Ensure teahcers engage with the private sector and with entrepreneurs and support initiatives that bring entrepreneurs to educational establishmentsEncourage entrepreneurship training for teachersPromote entrepreneurship educators’ networksd. Partner with the private sectorEncourage private sector sponsorship for entrepreneurship trainining and skill developmentLink up business with entrepreneurship education networksDevelop mentoring programmes
14 Examples of selected policies and iniatitives: Panama: UNCTAD’s Empretec programme has been adaptedTo rural micro entrepreneurs with low levels of literacy inprovincial Panama and VietnamBrazil: The Entrepreneurial Methodology designed to supportEntrepreneurship teaching in the school system(for youth from 4-17 years old)Indonesia: Ciputra Quantum Leap Entrepreneurship Centre Annual Entrepreneurship Teaching ConferenceMedio Oriente y Africa del Norte INJAZ:Panamá:Brasil:Brasil:Indonesia:Panamá:Singapur:Singapore: Singapore Managament University has developed courses in the creation of businesses,consulting to SMEs and finance for entrepreneurs
15 Examples of selecetd policies and initiatives: Perú : Instituto Peruano de Acción EmpresarialAn institution of higher education dedicated exclusively toentrepreneurs and whose faculty is composed of professorswho are entrepreneursBarbados: The Barbados Entrepreneurship FundDedicated to promoting entrepreneurship in the country. One of itskey areas of work is « education and talent » Among its diverseactivities, an annual contest is organized in high schools in whichyoung students need to start a company with only 20$Global: Endeavor helps high impact entrepreneurs around theWorld through consulting, mentoring, access to network ofmotivational and business leadersPeru, IPAE:Barbados Entrepreneurship Foundation:Endeavor:E-Mentoring UNCTAD: match.atdforum.orgTechnoserve:Global: Technoserve Business solutionsTt poverty
16 Policy objectives Recommended actions Support greater diffusion of ICTs to the private sectorLaunch awareness and capacity building campaigns on ICT useStimulate the introduction of ICT into businessSupoprt the development of on-line and mobile market information platformsProvide training on ICTs to target groups such as women and rural entrepreneursb. Promote inter-firm networks that help spread technology and innovationPromote horizontal linkages through cluster developmentProvide assistance for standardization and quality certification to networks of local enterprises (including social and environmental standards)Promote business linkages through supplier development
17 Policy objectives Recommended actions c. Build bridges between public bodies, research institutions, universities and the private sectorIdentify joint research activities with clearly designated participants and beneficiariesPromote PPPs and mixed public/private structures to diffuse innovationDevelop market friendly university-industry collaborationPromote institutional synergies at the sectoral leveld. Support high-tech start-upsEstablish high-tech business incubators, knoweldge hubs and science parksFacilitate start-ups that commercialize innovationBuild networks in knowledge intensive sectors wth leadingscience experts and academics around the worldGive researchers and innovators streamlined access to cost-effective patent protection
18 Example of selected policies and initiatives: Argentina: FONSOFT (Fiduciary Fund for the Promotion of theSoftware Industry) Offers non refundable contributions to entrepreneurswith business plans related to the development of softwareGlobal: UNCTAD’s Business Linkages ProgrammeSupplier development programme, linking SMEs to thesupply chains of large corporationsPanamá: The Panama Business Accelerator in Knowledge CityIs a space which focuses on the facilitation and acceleration ofdynamic and competitive enterprisesEgypt: The Ministry of Communications and Information TechnologyLaunched a strategy to support SMEs in the field of ICTArgentina:UNCTAD:Chile: CORFOPanamá:Egipto: UNCTAD’s ICT Policy Review, Egypt:Brazil: Lei da innvacao 2004Chile: Corporation for the promotion of productionExecutive organism for the implementation ofgovernment policies in the area ofentrepreneurship and innovationBrazil: Innovation Law of 2004 which provides supportand incentive mechanisms to foster alliances betweenUniversities, technological institutes and local enterprises
19 Policy objectives Recommended actions Improve access to relevant financial services on appropriate termsDevelop public credit guarantee schemesStimulate the creation of private mutual guaranteesPromote FDI in financial services, supply chain finance (factoring) and leasingIntroduce collateral-free loan screening mechanismsb. Promote funding for innovationProvide incentives to attract venture capital investors and business angelsEncourage equity and “risk capital” financing modalitiesProvide performance-based loans and incentives for innovation and green growthFacilitate the use of intellectual property as collateral
20 Policy objectives Recommended actions c. Build the capacity of the financial sector to serve start-upsEstablish a national financial charterPromote public-private sector partnerships for specific groupsProvide capacity-building grants and technical assistance to expand lending activities (e.g. financial service provision through post offices and other “proximity lenders”; use of new banking technologies to reach rural areas)d. Provide financial literacy training to entrepreneurs and encourage responsible borrowing and lendingSet up financial and accounting literacy trainingsUndertake appropriate supervision of financial products offered to social and micro-entrepreneursEnhance private credit bureau and public credit registry coverage
21 Examples of selected policies and initiatives: México: Nacional Financiera (NAFIN) offer on-line factoring services to SME suppliersGlobal: E+Co Venture Capital Fund is an international venture capital fund that specializes in providing debt and equity investments tosmall and medium-sized renewable energy entrepreneurs in Africa, Asia and Latin America.Perú: Caja Municipal Sullana is a network of municiapl savingsbanks that is the most important provider of financial services toSMEs in Peru.México: México:Global: ( UNEP-FI)Nigeria: edc.edu.ngPerú:Sud Africa: UNCTAD (2009) « Enhancing the Role of Domestic Financial Resources in Africa’s Development: a Policy Handbook »South Africa: A National Financial Charter came into effect in The main objective was to transform the financial sector into a leading force for the empowerment of black entrepreneursChile: Guarentee Fund for Small EntrepreneursIs a Chilean public guarantee fund to increase accessto finance by providing partial guarantees to banksfor entrepreneurs who lack the necessary collateral togain access to credit, or need longer maturities.
22 Policy objectives Recommended actions Highlight the value of entrepreneurship to society & challenge negative cultural biasesLaunch entrepreneurship outreach and awareness campaigns at national, regional and local levels in collaboration with all stakeholdersUtilize the media and spaces for policy dialogue, speeches, addresses and reports to communicate support for entrepreneurship.Disseminate information about entrepreneurship and its impact on the economy.Publicly celebrate entrepreneurship role models through awards, etc.Involve entrepreneurs in policy dialogue processes to sensitize government officialsb. Raise awareness about entrepreneurship opportunitiesAdvertise business opportunities linked to national sustainable development strategies and related incentive schemesOrganize information and career fairs, forums and summits on business opportunities, including in specific economic sectors or on specific business models such as micro-franchising
23 Policy objectives Recommended actions c. Stimulate private sector led-initiativesSupport private sector-led campaignsFacilitate business exchange platforms, business portals, fairs, business associations and clubsEngage diaspora community in local entrepreneurship networks
24 Examples of selected policies and iniatives: Global: Global Entrepreneurship Week is a global camapign to raiseawareness and promote entrepreneurship initiativesMalaysia: Opportunities for entrepreneurs highlighted inthe New Economic AgendaColombia: Law for the Promotion of a Cultureof Entrepreneurship (2006)Global: Global Entrepreneurship Week is a global campaign to raise awareness and promote entrepreneurship initiatives. In 2010, there were more than 1,576 examples of political engagement and six presidents and heads of state publicly expressed their support for Global Entrepreneurship Week and the important role that entrepreneurship has in society. Thousands of activities connected students and policy makers, aspiring and established entrepreneurs, companies and businesses. From business plan competitions to rallies demonstrating the power and potential of entrepreneurship, each event formed part of a global movement. (Malaysia: The Prime Minister of Malaysia communicated opportunities for entrepreneurs in Malaysia's New Economic Agenda in industries including electrical, electronic, IT, creative industries and life sciences and biotechnology fields. For example, Malaysia’s future in the electrical and electronic sector must be focused not only in manufacturing but in research and development and design, where Malaysian companies are driving innovation rather than simply importing it. Among the measures the Government envisaged were incentives for high-value research and support for SMEs supplying larger firms on a larger scale basis. In resource based industries, such as the palm oil, strengthening research initiative should lead to indigenous technology that better meets market demand, such as health fats and oils, Biofuel from biomass, cosmetic and biodegradable plastics.(Ghana & Rwanda: Examples of successful micro-franchises can be found in Ghana where franchise opportunities exist for individuals to distribute Fan Milk products, a transnational corporation which produces nutrition and refreshment dairy products. The start-up costs include US$250, a bike, a freezer and daily inventory. In Rwanda, Solar Sister is a company focused on women-centred solar lighting products. As of 2009, more than 150 individual agents had set up a direct sales franchise, with US$500, a start-up kit and some training and a daily inventory. (UNCTAD Inventory; Dalberg Development Advisors 2009)Colombia: Bavaria Entrepreneurial Social Network (Red de Emprendedores Bavaria) is the largest network of entrepreneurs in Latin America with over 25,000 entrepreneurs registered from more than 500 municipalities in the country. It is a virtual space for contacts, business opportunities exchange, distance learning and matchmaking. A team of young professionals animate the network and follow up on initiatives. (South Africa: Youth Entrepreneurship Campaign is a partnershipfor promoting youth entrepreneurship in the countryChile: The Start-Up Chile programme has beenused as a platform by the Chilean governmentto comunicate and positive image of entrepreneurship
25 Your analysis of the situation in your country: YES NO IN PARTAre there surveys for assessing the national entrepreneurial environment?Do mechanisms, such as multi-stakeholder forums, exist to promote policy dialogue on entrepreneurship?Does the country have a dedicated policy framework to promote entrepreneurship? Is there a national entrepreneurship strategy?Is there clarity about the priorities and type of entrepreneurship that the country wants to encurage?Are there specific policies in place to favour start-ups and SMEs?Are there specific policies in place to ecourage the transition to the formal business sector?
26 Your analysis of the situation in your country: YES NO IN PARTIs the entrepreneurship policy closely coordinated with other national policies? Is entrepreneurship embedded in other national policies?Is there a ministry, agency of instituion championing entrepreneurship? Is there a ministerial level entity in charge of coordination of the strategy?Is there a deliberate policy to promote formal entrepreneurial activity among specific groups of the population?Are there specific targets or measurable objectives to increase entrepreneurial activity?Does the government assess the impact of policy measures?Does the government support regualr independent policy evaluations?Does the government incorporate feedback from lessons learnt?Is there an annual (periodic) report on the state of entrepreneurship?
27 For each policy area: policy objectives and recommended actions, checklist of questions,set of indicators to measure overall policy effectiveness,on-line inventory of good practices,Therefore the EPF provides a practical toolkit for the formulation, implementation and measurement of entrepreneurship policiesKeypolicyareasof the EPFPolicy objectivesandrecommendedactionsforeachareaOn-lineInventoryofBest PracticePoliciestosupportformulation*User guidemethodmonitoring andevaluation*AvailableonUNCTAD’swebsite
28 Recommended approach for policymakers First, policymakers need to identify opportunities and challenges in promoting enterprise development in general and entrepreneurship in particular, in the context of the overall national development strategy.Second, policymakers need to evaluate and benchmark the current environment in which entrepreneurs set up, operate and grow their businesses.Third, policymakers need to define the overall entrepreneurship strategy and priorities, in terms of objectives and targets as well as policy gaps and shortcomings.Fourth, taking into account country-specific conditions, policymakers need to design a focused set of initiatives to address gaps and shortcomings identified.Fifth, policymakers need to regularly monitor and assess the impact of the policies put in place to ensure the relevance and the effectiveness of their actions.