Development of Entrepreneurship in Bosnia and Herzegovina Author: Rasim Tulumović 27 Nov 2012

Presentation outline What is entrepreneurship? What is entrepreneurship? How to measure if business environment is favourable (friendly)? How to measure if business environment is favourable (friendly)? Global Entrepreneurship Monitor Global Entrepreneurship Monitor

1. What is entrepreneurship? Entrepreneurship The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. Entrepreneurship The capacity and willingness to develop, organize and manage a business venture along with any of its risks in order to make a profit. The most obvious example of entrepreneurship is the starting of new businesses. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities. Entrepreneurship ranges in scale from solo projects (even involving the entrepreneur only part-time) to major undertakings creating many job opportunities.

2. How to measure if business environment is favourable (friendly)? Doing business DB mjeri poslovnu regulativu tako što prikuplja i analizira kvantitativne podatke vezane za poslovno okruženje (npr. broj dana za određene dozvole). Poslovno okruženje je dobro ukoliko je država bolje rangirana GEM Glavna aktivnost GEM projekta je praćenje i razvijanje indikatora kojima se mjeri poduzetnička aktivnost. Poslovno okruženje je dobro ukoliko ga ljudi i stručnjaci ocjene dobrim

3. Global Entrepreneurship Monitor comparative analysis of entrepreneurial development/dynamics in the world GEM is the biggest academic research project about entrepreneurship in the world. GEM is the biggest academic research project about entrepreneurship in the world. GEM is non-profitable academic research consortium. GEM is non-profitable academic research consortium. The aim of the Consortium is to create high quality international research data on entrepreneurship activities and made them available for researchers. The aim of the Consortium is to create high quality international research data on entrepreneurship activities and made them available for researchers.

Countries participating 1999

3.1 Basic information Three GEM objectives:  To measure differences in entrepreneurial attitudes / perception, activities and aspirations among countries;  To discover factors that defines nature and level of entrepreneurial activity;  To identify policies that could improve entrepreneurship within a country GEM research is based on data collected from 3 sources:  Adult Population Survey-APS  National Experts Survey-NES  International data bases (World Bank, IMF and others)

9 3.2 Entrepreneurial attitudes and perceptions CountryYear Perceiv ed opport unities Perceiv ed Capabil ities Fear to failure Entrepren eurial intentions Entrepren eurship as a Good Career Choice High Status to Successf ul Entrepre neurs Media Attentio n for Entrepre neurship Bosna and Herzegovina ,362,527,416,87663,047, Croatia ,353,231,27,467,149,941,8 Economies based on efficiency Slovenia ,856,327,58,753,273,756,2 Economies based on innovation

Entrepreneurial activities Country Year Nascent Entreprene urship Rate New Business Ownership Rate Early-Stage Entreprene urial Activity (TEA) Established Business Ownership Rate Discontin uation of Business es Bosna and Herzegovina ,42,88,15,06, ,1 7,76,63, ,11,34,43,93,1 Croatia ,32,17,34,23, ,11,65,52,91,6 Economies based on efficiency ,45,914,17,24,3 Slovenia ,91,73,74,81, ,22,44,74,91,6 Economies based on innovation ,03,06,97,22,7

Faktori motivacije za ulazak u poduzetničku aktivnost ZemljaGodina Poduzetnička aktivnost pokrenuta iz nužnosti (procenat od TEA- e) Poduzetnička aktivnost pokrenuta iz prilike za unapređenjem (procenat od TEA- a) Bosna i Hercegovina ,022, ,030, ,020,0 Hrvatska ,031, ,049,0 Privrede zasnovane na efikasnosti (prosjek) ,042,0 Slovenija ,051, ,054,0 Privrede zasnovane na inovacijama (prosjek) ,057,0

Institutional Context (Entrepreneurship Framework Conditions) Theme BiHCROSLOAll countries MaxAvaMin Finances / financial support to entrepreneurs 2,272,302,422,302,492,403,502,441,70 Government policies- concrete policies, priorities and support 1,882,002,272,102,532,403,492,481,72 Government policies - regulations, taxes and other factors defining business environment 1,81 1,961,802,402,104,032,371,00 Government programs – support to entrepreneurs through different programs and measures 2,012,202,492,402,682,703,632,571,57 Education – education and training in primary and secondary schools 2,042,102,111,902,171,802,882,031,37 Education – crafts, higher schools and faculties 2,562,402,762,702,982,603,502,812,34

Institutional Context (Entrepreneurship Framework Conditions) Theme BiHCROSLOAll countries MaxAvaMin Transfer R & D 2,092,002,302,202,402,503,462,331,79 Commercial and legal infrastructure – Profesional and commercial services 2,822,902,832,803,192,903,893,022,20 Internal market / dynamic 3,573,203,313,303,113,004,153,021,93 Internal market – Openness 2,032,002,172,202,572,503,302,511,60 Physical infrastructure (approach) 3,273,403,623,703,974,004,703,732,70 Cultural and social norms 2,272,202,422,302,142,203,722,731,92 Opportunity for starting business 2,872,803,013,033,263,294,003,272,24

1. Poduzetnici čija preduzeća ostvaruju visok rast stvaraju najviše radnih mjesta 2. Poduzetnici čija preduzeća ostvaruju visok rast su rijetki i teško ih je pronaći 3. Poduzetnike čija su preduzeća dostigla visok rast vodi mogućnost da povećaju svoj dohodak 4. Poduzetnici čija preduzeća ostvaruju visok rast često rade u partnerstvima i globalno su fokusirani 5. Obrazovanje je bitno 3.7 Karakteristike poduzetnika čija preduzeća ostvaruju visoki rast

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