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Malaysia transformed itself from a producer of raw materials in the 1970s into an upper-middle income country with a multi-sector economy by the late 1990s. The 1997 crisis significantly challenged this technology-exporting country, but it has since successfully sparked two main sources of economic resilience—foreign investment and new firm creation. To my surprise, Malaysian entrepreneurs I spoke with recently gave a great deal of credit to, of all actors on the stage, their government. Did government really do something right?
I returned this weekend from the Aspen Institute’s annual meeting of development entrepreneurs in New York where fresh thinkers were hard at work looking for new approaches to impactful international economic development. USAID Administrator Dr. Rajiv Shah sought out the opportunity to present his new vision for his agency, and Carl Schramm, President of the Kauffman Foundation, challenged the traditional strategic and intellectual platform that has driven the tired policies of decades of Washington consensus thinking around how we stimulate global economic growth.
This week, President Obama will turn his focus from budget sequestration to immigration. A new Kauffman Foundation report released last week argues that making 75,000 Startup Visas available for current holders of H-1B and F-1 visas who start companies could create as much as 1.6 million U.S. jobs in the next 10 years. Will Washington act or, if they cannot agree, throw the baby out with the bath water?
While the world gathered in New York last week for the Clinton Global Initiative and UN General Assembly meetings, I elected to accept an invitation to head out of town to check up on progress with one of the world’s “strong government” economies grappling with how to reconcile a tradition of top-down government control with a desire for bottom up organic startup communities.
The past few months have brought a new series of reports dissecting the job creation phenomenon by new firms, timely at a time when so much of the economic discussion lately in the U.S. has focused on strategies to recover the roughly 8 million jobs lost during this past recession. We already knew that research has firmly established that new firms—those no more than five years old—over the past three decades have been responsible for virtually all of the net new jobs created in the U.S. economy (see 2009 reports “Jobs Created from Business Startups in the United States,” and “Where Will The Jobs Come From?”). As the nation debates this leading up to the mid-term elections in the United States, let’s further examine U.S. job growth and its relationship to startup companies.
Last Thursday, President Obama announced his nomination for the position of Chief Counsel for Advocacy at the Small Business Administration. The nominee, Winslow Sargeant, is a managing director in the technology practice at Wisconsin-based venture firm Venture Investors LLC. The first thing that comes to...
As the deadline for the reauthorization of the Small Business Innovation Research (SBIR) program approaches, evidence is mounting on both sides of the debate that has been pushing the decision about the future of SBIR back since March. This time, a new study supports the...
As a lead up to the March 2012 Global Entrepreneurship Congress, I will spotlight here a handful of the 120 nations gathering in Liverpool to develop the best entrepreneurial ecosystems. Today we look at Belarus.
While entrepreneurs can be found anywhere, I take particular interest in what the most populous countries are doing to comb their citizens for entrepreneurs. Italy is the sixth most populous country in Europe, and the twenty-third most populous in the world. It also has the world's seventh-largest nominal GDP. Unfortunately, it also has the sixth highest government budget and a large public deficit, such that the economic confidence crisis in the Euro zone that sparked in Greece put a spotlight on Italy´s economy, which faces similar insolvency risk. With Italy´s public debt around 120 percent of GDP and growing, policy options are increasingly constrained. Fortunately, spurring entrepreneurship is not necessarily expensive (although it does take political commitment) and is a proven source of economic energy.
While the global financial crisis impacted almost all new entrepreneurs, it began in developed countries and hit their entrepreneurs harder. As a result, in richer countries, new business creation dropped sharply amid the crisis. In contrast, new business registrations in many low-income countries didn't change much. These are the findings in The 2010 World Bank Group Entrepreneurship Snapshots, which presents data collected about newly registered companies in 112 countries and was released recently.
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