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During this past Week I have been “Globe Blogging” and have reported from the road about various Global Entrepreneurship Week (Nov. 16-22) policy events among others from around the world. Entrepreneurs, development organizations, policy leaders and entrepreneurship researchers lent their voices and experiences to some series policy dialogues. When top-level officials engaged in Global Entrepreneurship Week they sent a message to their constituents about the government’s support for entrepreneurship, making young minds even more comfortable with the idea of doing good through the marketplace. Let’s hope decision makers will be motivated to more urgently enact regulatory reforms and advance other polices to bolster their nation’s entrepreneurial climate.
If you often find yourself quietly thinking “I know a better way to do this” or “I could create something new that would make this easier for everyone,” you are a potential entrepreneur. Don’t waste that potential. The economy needs you more than ever.
The record number of pro-entrepreneurship legal and regulatory reforms in the past year among the economies studied by the World Bank’s Doing Business project is welcome news during a time of global economic recession. Prioritizing reforms and learning from global best practices hold enormous potential to unleash entrepreneurship. To maximize this potential, leaders must also promote a culture that embraces entrepreneurship.
Welcome to Global Entrepreneurship Week. Throughout this week, I will be reporting in from entrepreneurship policy events around the world. Global Entrepreneurship Week is engaging more than four million participants in 887 countries exploring new venture creation as a career path through mentoring activities, business plan competitions, networking events and other fun activities. It offers an extraordinary demonstration to policymakers that there is a new wave of entrepreneurialism before us and if we want to build economies and make jobs, they must quickly create the most favorable environment possible.
President Obama recently announced that the U.S. government is committed to restoring the nation's leadership in educating children in math and science, and launched a new “Educate to Innovate” campaign. The campaign will bring together teachers, parents, businesses and the media to promote math and science learning. The effort promises to test and launch new ideas to improve math and science education outcomes, and most importantly, our children’s interest in these fields as platforms to tackle many pressing challenges. While the campaign aims at encouraging students to engage in innovation, will it foster innovation among education providers themselves?
The idea of an entrepreneur’s or start-up visa that grants high-skilled immigrants the right to stay if they start job-generating businesses is gaining traction. Last Wednesday, a Wall Street Journal article laid out the case for it and the next day it was discussed both at a meeting I attended on how to boost innovation in the U.S and at the President’s Jobs Summit as a way to create jobs.
Since the economic crisis broke out, capitalism has been under the microscope. Many have blamed evil businesses and market forces for the financial meltdown, and have lost confidence in private-sector engagement strategies for recovery. Luckily, in this country many more have experienced the positive impact of entrepreneurship either directly and indirectly. In a March 2009 survey, 63% of respondents said they “prefer giving individuals the incentives they need to start their own businesses as opposed to allowing the government to create new jobs directly.” A look at the role of new businesses in the economy reveals that it is not a matter of rejecting capitalism but rather of allowing more entrepreneurs into the economy.
We have long argued that the American model for development assistance could improve dramatically if entrepreneurship becomes a stronger element of economic development efforts. Unfortunately, the importance of new firm creation is a concept that has yet to gain relevance in traditional development models, such as the Washington Consensus. However, there are a few actors who understand the power of entrepreneurship and have been using it to improve lives. Diaspora entrepreneurs are using their experience and understanding about entrepreneurship to invest in new ventures in their country of origin. These transnational entrepreneurs view a globe of porous borders.
So we know that entrepreneurs are the primary engines of job creation in the United States. Research study after research study has confirmed that it is young firms that drive improvements in the employment situation. From 1980–2005, firms less than five years old accounted for all net job growth in the country. In 2007 alone, young firms (1-5 years old) accounted for nearly two-thirds of job creation. We also know more than half of the companies on the 2009 Fortune 500 list were launched during a recession or bear market, along with nearly half of the firms on the 2008 Inc. list of America’s fastest-growing companies. In light of all this evidence and in face of the employment crisis in the country, how can we truly support the entrepreneurs behind these young firms?
When President Obama will deliver his first State of the Union address is still unclear. However, with 80 percent of the population believing that new economic growth and jobs will come from entrepreneurs, discussion around what his address should include in terms of policies that encourage new start-ups is already underway.
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