Making it easy to launch a new enterprise is one of the many ways in which the U.S. has led the world in fostering a dynamic entrepreneurial class. Other structural factors, from bankruptcy laws to tax policies and employment regulations, help small businesses thrive here. And those moves have been copied into the playbooks of other nations eager to see their homegrown entrepreneurs create jobs and spur economic growth.
Geoff Lewis in a Fortune Small Business article reports on his search to find the most entrepreneurial nations.
“Our quest for startup-friendly countries began with the World Bank's doing Business reports (doingbusiness.org), which every year measure the entrepreneurial climate of 175 nations in two ways: starting and operating a business. But the lists give an incomplete picture. France, for example, ranks in the top 10% for ease of starting a business and in the top fifth for operating one, but it has notoriously low rates of entrepreneurship.
Global Entrepreneurship Monitor (GEM), an annual study produced by Babson College and the London Business School. Its 2007 High Growth Entrepreneurship Report provides a glimpse at national rates of high-expectation entrepreneurship - how many American-style entrepreneurs a country produces.” Amongst the other things that the report finds is that the world’s two largest emerging economies, China and India, exhibit significantly different levels of high-expectation and high-growth entrepreneurship.
Emphasizing on the role models that young people adore in all countries, one of the quotes indside the article points out "Every high school kid in the United States knows who Sergey Brin and Larry Page are". Now this cultural revolution is spreading to China, where newly minted billionaires such as Zhengrong Shi, chairman of Suntech Power Holdings (suntech-power.com), are becoming folk heroes.
Read - Who in the world is entrepreneurial?.
As i see it,These surveys typically ignore how majority of people get things done –engaging specialist firms and taking expert advice may substantially alter the cycle time – but in some cases, it can be worse than what has been published. For instance, am surprised at the better ratings given to Thailand over other asian countries. Business friendliness also need to be assessed along the lifecycle of the business. Martin wolf wrote a couple of days back that asian countries are creating their own course of progress chart, and they are so successful that multilateral agencies like IMF are getting thrown out of business and the multilateral bullying institutions are cut to their size and are getting more and more irrelevant to most of the world’s population. While there is no doubt about the rise of asia in a big way, its attractiveness index for entrepreneurs need to go up – substantially. I do believe that in general the entrepreneurial cult will get more and more strong in the days to come – around the world. Seeing the rapid change that is happening all over the world, I can safely say that this list would look different five years from now and much more different in a decade.
Labels: Emerging Markets, Emerging Trends, Entrepreneurship