1. Entrepreneurship and Growth Skopje, Macedonia Tuesday, April 21 Free Market Road Show Dr. Kathleen Sheehan kate.m.sheehan@gmail.com

2. Economic Growth Land Labor Capital Entrepreneurship!

3. Entrepreneurship An entrepreneur is someone who organizes, manages, and assumes the risks of a business Entrepreneurship is the process of discovering new ways of combining resources

4. Entrepreneurship Entrepreneurship, not government, for job creation – Helps both entrepreneurs and workers Entrepreneurship, not government, for economic growth

5. Economic Freedom To have policies consistent with economic freedom – Personal choice – Voluntary exchange – Property rights – Ability to enter and compete in markets

6. Economic Freedom and Income per Capita

7. Economic Freedom and Economic Growth

8. Economic Freedom Low taxes, tariffs, and low barriers to international trade Stable monetary policy Secure protection of property rights Sound independent legal system Market process to allocate goods

9. Economic Freedom

10. Macedonia 72 out of 152 countries – Size of government, ranked 104 (score 5.8) – Legal System and Property Rights, ranked 80 (score 5.4) – Sound Money, ranked 83 (score 8.2) – Trade, ranked 42 (score 7.7) – Regulation, ranked 20 (score 8.1)

12. Institutions that lead to wealth Not all forms of entrepreneurship lead to wealth – Unproductive or destructive entrepreneurship Rent Seeking, Corruption, Organized Crime

13. Doing Business Aggregate ranking on ease of doing business – Examines regulations that apply to medium and small enterprises

14. Doing Business

15. Shadow Economy People enter the shadow economy when they feel overburdened by the state – Estimated 35% of GDP in Macedonia – Growing since first measured in 2001

16. Institutions that lead to wealth Productive entrepreneurship – Leads to innovation and technological change – This is what leads to long term growth!

17. Institutions that lead to wealth Simple rules to follow Clear property rights enforcement

18. Youth Unemployment

19. Economic Freedom

20. Entrepreneurship and Growth Skopje, Macedonia Tuesday, April 21 Free Market Road Show Dr. Kathleen Sheehan kate.m.sheehan@gmail.com