1. Driving Entrepreneurship through
Strategic Policy Making
Ydir Vissers
Monitor Group

2. Economic competitiveness of countries depends on three
interdependent pillars
Specialized
Human
Assets
Entrepreneur
Innovation
-ship

3. Entrepreneurship drives economic competitiveness by cultivati
economic agility & innovation
The Challenge  High and rising standard of living
The Context  Pace of change and global competition
The  Cultivating “economic
Entrepreneurship agility” and innovation
“Solution”

4. However, it is not always clear how to boost entrepreneurship
because of the large number of possible actions and initiatives
country could pursue
Financing Technology & Infrastructure
 Establish community/regional investment funds; tie to  Streamline listing regulations for growing firms seeking to  Upgrade physical infrastructure  Increase number and size of specialized R&D facilities
local funding campaigns raise public funds (transportation, utilities, and telecommunications) to  Establish shared R&D facilities / joint university, public
 Establish minimum small business lending thresholds for  Streamline regulatory barriers to mergers / support new and growing firms sector and industry facilities
banks and lending institutions buy-outs  Offer subsidies such that cost of access to infrastructure is
 Create angel funding networks  Establish organizations to facilitate firm buy-outs not prohibitive
 Allow indirect personal contributions to seed funding  Establish government subsidies / loans for new and
(e.g., pensions) growing firms
 Establish a centralized organization to advise
entrepreneurs on available financing options
 Ensure lending policies are no more stringent for
new/growing firms than for established firms Legislation
and strategies  Provide tax incentives to increase R&D activities, and to  Provide legislative incentives for use of stock options
increase commercialization of R&D  Ensure stock option laws apply equally to new, growing
 Ensure business taxes have a similar effect for and established firms
new, growing, and established firms
Skills & Talent  Establish tax policies that do not interfere with launch or
 Ensure competition laws treat all firms equally; no unfa
blocking of new firms entering the market by establishe
 Establish curriculum requirements on entrepreneurship  Set up co-op / internship programs growth firms
and new firm formation in primary and secondary schools  Scholarship/ award / sabbaticals for highly meritous  Strengthen intellectual property rights
 Establish colleges and university course / program candidates to create greater access to and affordability of
offerings or distance learning partnerships on post-secondary schooling
entrepreneurship and new firm creation and  Set up a regular talent scan in schools, colleges and

management education
Support / establish business programs for 
industry for high-potential and serial entrepreneurs
Set up mentorship/ apprenticeship programs for high
Administrative Burdens
mid-career professionals  Refine regulations to ensure they do not interfere with  Ensure that administrative costs of compliance with
potential individuals
start up of new firms and apply to new and existing firms government regulations do not unfairly burden new firm
 Support endowment giving to grow number  Support new venture competitions in a predictable way  Streamline the number licenses / permits needed to sta
and size of local colleges and universities  Recruiting targeted talent to a region; offer relocation  Refine procurement policies to apply equally to new as to a firm to reduce time and complexity
 R&D grants & financing for experimentation assistance established firms  Establish a “Small Business Clause” in considering futur
infrastructure
 Ensure labor regulations do not discourage hiring of small legislation
or large number of employees
 Provide support for business tax filing
Support Services
 Increase number, variety, and quality of business support
services to fill needs of new and growing firms
 Provide incentives for colleges, government research
centers and anchor firms to make their technology
Mindset
 Dedicate a regular media column / publication to profiles  Support regional enhancements and initiatives to attrac
 Offer discounts, grants & matching programs to ensure available to new / growing firms for commercialization
of successful and high-potential entrepreneurs diverse, young people and families
availability of affordable support  Establish formal tech transfer mechanisms to capture (e.g., Parks, entertainment complexes, pre-school
 Sponsor conferences, workshops and business case
 Set up a centralized agency to link support services and knowledge spillovers education)
competitions; leverage business associations and
government programs  Subsidize new and growing firms seeking to acquire networking organizations  Review personal income tax levels to ensure individuals
 Increase number and size of incubators to launch and/or develop latest technology are not discouraged from starting or growing firms
 Establish entrepreneurship awards, research grants and
different types of firms  Provide incentives for spin-offs from research institutions scholarship programs  Review the personal effects (financial & reputation-
 Create business associations and anchor firms related) from bankruptcy; ensure these are not
 Create a regional publicity campaign to attract innovative
 Appoint a small business ombudsman to advocate for and entrepreneurial individuals irreversible
small business needs (e.g., Entrepreneurship Advocacy  Provide personal tax and health insurance breaks for
Office) entrepreneurs

5. In general, literature seems to suggest that countries need to
“do everything” to foster entrepreneurship
Talent & Legislation &
Ideas Regulation
Intellectual
Capacity
Developing the Life
Personality Situation
entrepreneur
Heritage
Business & Social &
Creating the
Financial Cultural
Context

6. Our research suggests that high impact entrepreneurship could
be catalyzed through targeted policy levers
High Impact
Entrepreneurs
Revenue CAGR
Traditional
Entrepreneurship
Net Operating Profits

7. However, one needs to choose from several alternate paths tha
could drive high impact entrepreneurship
Pathway Brief Description
1
Classic University-developed IP is commercialized, in large
Approach part with the help of venture capital
2
A region attracts branch plants and R&D centers from
Anchor Firm which new firms spin-out, often with help and
support of the anchor firm
3
A local entrepreneur achieves great success, and this
Home-Grown
Genius
motivates, and creates opportunities for more
entrepreneurship
4
Downsizing at established firms and/or research
Event Driven organizations forces and motivates entrepreneurial
efforts

8. The “classic” Silicon Valley route to entrepreneurial success has
been well understood
1
Classic University-developed IP is
“Silicon Valley” commercialized, in large part with
Approach the help of venture capital

9. However, not many countries in the world have been able to
replicate this success

10. Anchor firm driven entrepreneurship can work but it requires a
(aspiring) industry leader
2
A region attracts branch plants and R&D
Anchor Firm
centers from which new firms spin-out, often
Model with help and support of the anchor firm
South Korea

11. Local heroes can be the catalyst for entrepreneurial activities
and a vibrant ecosystem of start-up activity
3
A local entrepreneur achieves great
Home Grown
success, and this motivates, and creates
Genius opportunities for more entrepreneurship
Bangalore

12. An adverse event can be leveraged to drive the creation of an
entrepreneurial environment
4
Downsizing at established firms and/or
Event Driven
research organizations forces and motivates
Model entrepreneurial efforts
1900 1910 1930 1950 1970 1990
Hospitality and Tourism
Sporting and
Transportation Leather Goods
and Logistics
Aerospace
Power
Vehicles
Generation
and Defense
Climate and Communications
Geography Equipment
Analytical
Instruments Information
Technology
Education and
U.S. Military Knowledge
Creation
Base Medical
Bioscience Devices
Research
San Diego Centers
Biotechnology /
Pharmaceuticals

13. Irrespective of the chosen model to success, several key
stakeholders need to play an important role
Key Stakeholders
Private Sector
Academia
Government

14. Most importantly, governments need to develop policies that
facilitate entrepreneurship
Establish role
models for
entrepreneurs
Invest in
Attract education
anchor
firms
Collaborate
with private
sector and
academia
Streamline
regulations Provide
incentives

15. A government has many policy levers at its disposal to drive
entrepreneurship
Policy Drivers
Entrepreneur- Business Policy
Motivation
ship Assets Assistance Accelerators
Technology & Support
Financing Skills and Talent Legislation Admin. Burdens Mindset
Infrastructure Services
Entrepre. Business Entrepre. Tech
Equity Debt Training and Tech and Infra- Taxes / Com- Transac-tion Culture &
Mngt. Advisory Develop. Commer-
Financing Financing Education R&D structure Incentives petition Costs Attitudes
Capacity Services Programs cialization
Supply Supply of
Supply of Skills Competency Govt. Access to Credits / Market Govt.
of Equity Expenditures Physical Infra. Business Legitimacy
Debt Capital Development / Experien. Programs Tech. Incentives Openness Regulations
Capital Services
Corporate/
Access to Access to Affordability of Networking Affordability of Individualist
Preparation Business Govt. Impact
Equity Capital Debt Capital Bus. Svcs. Orga-nizations Tech. Culture
Taxes
Attitudes
Financing Quality of Stock Option
Incubators Spin-outs towards Incom
Strategies Bus. Svcs. Rules Tax
Attitudes
Exit Strategies towards
Bankruptcy

16. Using OECD’s Growth Model, we have assessed the impact of
these policy levers
1 2 3 OECD Multi-Factor Productivity Model
ICT
HR
Capital Labour
Innovation
Entrepreneurship
Entrepreneurship
Performance
Value Creation /
Growth
Entrepreneurship
Policy Drivers

17. There are a number of key policy drivers that have a universal
impact
Create incentives for innovation
Facilitate entry and exit of new businesses
Manage the risk and reward equation
Change the perceptions and cultural conditions

18. 2003–2012 Entrepreneurship Benchmarking Initiative has been an
effort to benchmark entrepreneurship policies in countries and regions
2003-11 Entrepreneurship Benchmarking Initiative
Countries, Regions, and Sponsors

19. In collaboration with the Kauffman Foundation and the Helleni
Association of Young Entrepreneurs we will know more about
Greece in November
• Entrepreneurship Policy Survey in 60
countries
• Results to be presented November 12-18
http://www.unleashingideas.org/content/ge
w-policy-survey