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Entrepreneurship: An Engine for Economic Growth Converting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape.

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Presentation on theme: "Entrepreneurship: An Engine for Economic Growth Converting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape."— Presentation transcript:

1 Entrepreneurship: An Engine for Economic Growth Converting Individual Ambitions to Economic Growth and Prosperity for a Nation - The Opportunity Landscape USA UK INDIA Progressive Intelligence Partners in Achievement Power of the millions … that’s entrepreneurs, not $’s! BGL BNP Paribas 50 Av. J. F. Kennedy L-2951 Luxembourg 19 June 2013 Denver Chicago New York Wash. D.C. London Delhi Founded Chapters 18 Countries 13,000 Members

2 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Wave of Global Change Change in economic parity between countries Slowdown in the larger western economies Migrating populations of economically disadvantaged Shifting demographics of metro areas Limited institutional accountability Pace and impact of technological innovation Powerful and dynamic forces have dramatically transformed the business and social landscape across the globe, bringing new challenges and opportunities to the forefront!

3 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Increased emphasis by governments, through direct programs and public institutions, volunteer organizations, and private foundations to encourage entrepreneurship. Intuitive and Obvious Response While it is not a panacea solution, common sense suggests that entrepreneurship must play a significant part in our response to these changes globally. An entire generation of disenfranchised youth awaits Current economic malaise will stretch well into this decade Fiscal deficits have straight-jacketed most of the developed world Job markets have thinned; while eligible job seekers have risen

4 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Global population stands at 7B; all are potential prospects 1.4B still live without electricity and 780M without drinking water! Global Online Retail $0.5T; 15% p.a World has shrunk; 1B connected with Gangnam Style as though Psy were a local folk singer!! Unimaginable opportunities exist! Android, Samsung & Apple mobile ecosystem $10B; 750M devices Mobile Gaming $7.5B; next 3 yrs But all is not Doom and Gloom

5 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. It is crucial that we understand entrepreneurship and its influence on economic growth; identify factors that encourage and/or hinder this activity. Understanding Entrepreneurship Entrepreneurship is not a defined science, but neither is it a game of dice that must be left to Lady Luck! Entrepreneurial success and economic well-being can be made systemic and less a matter of chance. Chances of entrepreneurial success (leaving aside celestial interference) are commensurate to the enabling environment that supports it

6 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Entrepreneurship can be taught; one does not have to be born with a particular DNA strand. Making Entrepreneurship Accessible Significant lead time to any planned remediation or organic programmes before they start to have an impact! Is one born with an entrepreneurial mind set or is it something that one can learn? In the genetic debate, if Nature is about genes then Nurturing offers effective gene-splicing. Education, mentoring and coaching, and effectual networking override or strengthen the existing bonds.

7 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. 1. Develop an idea under incubation Seeding the Entrepreneurial Mindset Connecting the dots …! 2. Mentor through a maturing phase 3. Guide towards sustainable growth Entrepreneurs require vital support throughout their venture lifecycle! 4. Monetize the developed asset Seeding the Entrepreneurial Mindset

8 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Contribution of Entrepreneurs Tangible evidence and broad consensus among mature and emerging economies that entrepreneurs can catalyse economic growth Entrepreneurship encompasses start-up activity, as well as the running of new and established businesses! Entrepreneurs contribute by spurring creativity, encouraging innovation, forming new ventures, and instigating productive activity Entrepreneurs raise collective consciousness on benefits of self- reliance, by enhancing the sense of control on one’s own destiny Entrepreneurs highlight individual initiative, collaborative ambition, and innate desire to grow what they build

9 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Please forgive the rhetoric but hopefully, at least some of it is useful in crystallising your views on entrepreneurship! Risks of Listening to Someone on a Soapbox Privilege of the Stage: project evangelical fervour as insightful or a profound revelation

10 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Entrepreneurship is a promising career choice, offering people a way to place themselves in the driver’s seat and often, grab a windfall of disproportionately high returns. We are not talking about the successful few who are making millions but rather the millions who simply aspire to make a success of it …! The Sermon

11 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Let’s Get Serious …! Entrepreneurs play a crucial role in the development and well-being of societies!

12 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Global Entrepreneurship Monitor (GEM) Activity World’s Largest Study (85 Countries) of Entrepreneurship Global perspective on entrepreneurship, its key economic drivers, motivating factors, and the required enabling environment to sustain it! Growth Aspirations Attitude Job creation potential; important policy concern in the aftermath of a 5- year global recession Perception of opportunities, own capabilities, fear of failure, entrepreneurial intentions and societal beliefs Start-up/new, growing and discontinued businesses, necessity and opportunity driven efforts, and age/gender

13 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Soft Factors with a Hard Impact Acceptance of entrepreneurship as a career Positive attitudes Perceptions Stakeholders to enhance and assist Cultural & Institutional support Propensity Status and media attention on entrepreneurs can be a significant boost to self-confidence and an incentive to carry on in the face of diversity!

14 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Developed Economies Well-developed economic, political and institutional environments have lower entrepreneurship rates Presence and attractiveness of employment alternatives for income Lower necessity based motivation due to higher level of wealth Job protection and social security lower the incentive to start businesses Conservative financial systems and bankruptcy laws pose barriers to entry and exit

15 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Presence and attractiveness of employment alternatives for income Lower necessity based motivation due to higher level of wealth Job protection and social security lower the incentive to start businesses Conservative financial systems and bankruptcy laws pose barriers to entry and exit Developed Economies Cultural factors also play an extremely important role Professional careers evoke higher social status Mortgages and tuition fees increase reliance on stable incomes Individuals (and their parents) value jobs more highly Social and legal costs of failure limit the extent of a safety net

16 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Developed Economies At the end of 2012, its TEA* rose to 13% 43% of working age adults believe there are good opportunities for entrepreneurship, a jump of more than 20% from % believe they have the capabilities to start a business, a steady ratio despite severe economic volatility of the last 5 years … highest since 1999; a third higher than 24 other developed economies! US stands as a dramatic exception … Policy makers appreciate and indeed, count on the role played by new and small businesses in the US economy! *Total Early Stage Entrepreneurial Activity (TEA)

17 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Back in 2008, IHS Global Insight had found that while VC investment represented 0.2% of US GDP, the revenue of companies created by the industry represented 21% of GDP ( $14T). A strong VC industry is essential to entrepreneurial growth. Developed Economies US is counting on its entrepreneurial sector for job creation, economic development, better healthcare, cleaner technology, and a faster, better, and more secure internet to build a thriving new economy. US stands as a dramatic exception …

18 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Role of Effective Policy Equity, Debt, Subsidies, Grants for start-up, small and growing businesses Finance Access to Comms., Transp., Util., Land & Space for start-ups, small and growing businesses Infrastructure Accounting & Legal Svcs and Institutions to promote start-ups, small and growing businesses Commercial & Legal No inhibition for individuals to create new businesses leading to greater dispersion of wealth Cultural & Social Market Dynamics and Openness for start-ups, small and growing businesses to enter/exit Entry Regulations Policies & Regulations encouraging start-ups, small and growing businesses Govt. Policy Favourable Tax and Regulatory Regime for start-ups, small and growing businesses Programs Training at Primary & Secondary school, and Mentoring & Coaching at post-school early stages Education Commercial Opportunities for start-ups, small and growing businesses from National R&D R&D Transfer 9-Point Entrepreneurship Framework* *Global Entrepreneurship Monitor (GEM)

19 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. High unemployment and a growing youth population is an incendiary mix that presents a high risk scenario for any country. Need programs tailored to entrepreneurs that improve the labor market, grow the internal market and provide access to int’l markets. Identify and implement policies that encourage start-up businesses and support businesses with high growth expectations. No country can afford to curtail the ambitions and sustainable well-being of its youth … they are its future! Role of Effective Policy High-growth oriented approaches to entrepreneurship result in job creation and economic growth.

20 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Role of Effective Policy For entrepreneurship to take root in a country, it takes more than just smart people with good ideas Appetite for entrepreneurship can be dramatically influenced by attitudes and extent of ongoing entrepreneurial activity. Policies that discourage divisive classifications of race, age, class, gender, and ethnicity, while assimilating socio-economically deprived sections of society promote inclusiveness and fuel economic growth. Encouraging entrepreneurship education and societal values in primary and secondary schools is a key factor in sustainability of entrepreneurship as the preferred career choice. Economic growth through entrepreneurship must not be at the cost of inclusiveness, global awareness of issues and a social conscience; it is this that ensures societal well-being!

21 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Role of Effective Policy High-aspiration entrepreneurs are also sensitive to the rule of law: if that is weak, entry regulations might increase the number of new entrepreneurs, but fewer of these will seek growth. Protection of IP encourages specialization and supports a course of action that best fits entrepreneurs’ core strengths. Policy-makers can encourage the entry of entrepreneurs by alleviating red tape with starting new business ventures Government must consciously formulate effective and targeted policies with supporting programs to stimulate and support the efforts of entrepreneurs!

22 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. In the absence of a supportive policy framework, quality of entrepreneurial effort suffers and in turn, it diminishes the economic impact of entrepreneurship. Role of Effective Policy Migratory populations and changing demographics as a consequence is a leverage point Robust, forward-looking, and equitable immigrant policy contributes to developing an environment within which entrepreneurship can thrive. Developed economies derive value from migrant entrepreneurs through job creation, while emerging economies benefit from connections to émigrés who help local businesses expand their reach globally.

23 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Events Partnerships Effective networks Business affiliations Cross-border collaborations Academic Programs Informed policy agenda Public/Pvt enabling bodies Awareness and excitement Influence Extend Deliver Launch Aspiration Where we want to be Fostering Entrepreneurship FlagDiscussExplorePractice Maturity Where we are today Thought leadership Mentoring and coaching Access to willing capital Institutional involvement

24 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd. Conclusion Entrepreneurship is a multifaceted and dynamic phenomenon whose manifestation and behaviour varies widely around the world Impact of evolution in social values, political climate, economic priorities, technology-driven upheavals in how businesses are run, coupled with an increasing “migration sans frontières” has shaped the entrepreneurial landscape. Entrepreneurship is picking-up pace; institutional environment to support it will have to adapt quickly at local, national, regional and global levels, or risk missing out on the economic benefits of this unstoppable phenomenon!

25 © Copyright 2013 Progressive Intelligence Pvt (UK) Ltd.


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