London Business School / Babson College Study of Entrepreneurship in 2004: Policy Implications
GEM Global Report
Policy must be adapted to prevailing national circumstances. Maria A Minniti, Associate Professor, Economics and Entrepreneurship, Babson College and lead researcher of this year's report said, "the findings suggest the quality and quantity of entrepreneurial efforts varies depending on a nation's income levels. Thus, policies that may succeed in a specific context, for example one characterized by monetary stability, competition and a well-developed physical infrastructure, may not be successful in an environment characterized by financial instability, low levels of literacy and lack of entitlement.
Policies and best practices must be rooted in the context of the country in which they are applied."
However, policy implications can be divided into three broad categories:
Low-income countries (those that are neither innovating at home nor adopting foreign technologies): There is a need to strengthen small and medium-sized sectors and reduce the number of necessity entrepreneurs before focusing on developing overall entrepreneurial conditions. A strong commitment to education and training is necessary. Labour market flexibility, infrastructure improvements, management skills and financial market efficiency must also be developed to attract major investments.
Middle-income countries (those adopting technologies in production and consumption): These countries must strengthen entrepreneurial conditions to move from being technology-adopting countries to technology-creating countries. They need to continue their commitment to entrepreneurial education including the fundamental aspects of the entrepreneurial mindset, and focus on the development of informal investors.
High-income countries (those who produce the world's technology innovations): High-income countries should focus on strengthening technology transfer; making early stage funding available; and supporting entrepreneurial activity at the state, corporate and university level. Higher education must take a greater role in research and development, technology commercialization and scientific education. Entrepreneurs need more commercial-skills training and team building programs made available to them.
FOUNDING AND SPONSORING INSTITUTIONS
London Business School's Vision is to be the pre-eminent global business school, nurturing talent and advancing knowledge in a multinational, multi-cultural environment. Founded in 1965, the School graduated over 800 MBAs, Executive MBAs, Masters in Finance, Sloan Fellows and PhDs from over 70 countries last year. The School's executive education department serves 6,000 executives and 60 corporate clients on its programmes every year. London Business School is based in the most accessible and international city in the world and is one of only two business schools in the UK to be awarded a six-star (6*) rating by the Higher Education Funding Council for England (HEFCE), confirming the School as a centre of world-class research in business and management. For information, visit www.london.edu
Babson College, Wellesley, Mass., USA, is recognised internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate programme and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programmes to experienced managers worldwide. For information, visit www.babson.edu.
The GEM report: This is the sixth annual Global Entrepreneurship Monitor (GEM) cross-national assessment of entrepreneurship. Started in 1999 with 10 participating countries, the project has expanded to include 34 countries in 2004, representing a total labour force of 784 million.
The GEM programme is a major effort aimed at describing and analyzing entrepreneurial processes within a wide range of countries. The programme has three main objectives:
- To measure differences in the level of entrepreneurial activity between countries
- To uncover factors leading to appropriate levels of entrepreneurship
- To suggest policies that may enhance the national level of entrepreneurial activity
New developments, and all national reports, can be found at www.gemconsortium.org. The programme is sponsored by London Business School and Babson College.
Copies of GEM 2004 Financing and GEM 2004 Global reports are available at www.gemconsortium.org
GEM Lead Researchers: Zoltan J Acs, Pia Arenius, William D Bygrave, Michael Hay, Maria Minniti, Babson College and London Business School.
________________________
Produced for London Business School
CONTACT:
Kerry Taylor
kerrytaylor@london.edu
+44 (0) 20 7706 6972
Claire Prentice
cprentice@london.edu
+44(0) 20 7706 6866
Michael Chmura
mchmura@babson.edu
781-239-44549
Barbara Blair
blairb@babson.edu
781-239-4621
More about the study:
Policy must be adapted to prevailing national circumstances. Maria A Minniti, Associate Professor, Economics and Entrepreneurship, Babson College and lead researcher of this year's report said, "the findings suggest the quality and quantity of entrepreneurial efforts varies depending on a nation's income levels. Thus, policies that may succeed in a specific context, for example one characterized by monetary stability, competition and a well-developed physical infrastructure, may not be successful in an environment characterized by financial instability, low levels of literacy and lack of entitlement.
Policies and best practices must be rooted in the context of the country in which they are applied."
However, policy implications can be divided into three broad categories:
Low-income countries (those that are neither innovating at home nor adopting foreign technologies): There is a need to strengthen small and medium-sized sectors and reduce the number of necessity entrepreneurs before focusing on developing overall entrepreneurial conditions. A strong commitment to education and training is necessary. Labour market flexibility, infrastructure improvements, management skills and financial market efficiency must also be developed to attract major investments.
Middle-income countries (those adopting technologies in production and consumption): These countries must strengthen entrepreneurial conditions to move from being technology-adopting countries to technology-creating countries. They need to continue their commitment to entrepreneurial education including the fundamental aspects of the entrepreneurial mindset, and focus on the development of informal investors.
High-income countries (those who produce the world's technology innovations): High-income countries should focus on strengthening technology transfer; making early stage funding available; and supporting entrepreneurial activity at the state, corporate and university level. Higher education must take a greater role in research and development, technology commercialization and scientific education. Entrepreneurs need more commercial-skills training and team building programs made available to them.
FOUNDING AND SPONSORING INSTITUTIONS
London Business School's Vision is to be the pre-eminent global business school, nurturing talent and advancing knowledge in a multinational, multi-cultural environment. Founded in 1965, the School graduated over 800 MBAs, Executive MBAs, Masters in Finance, Sloan Fellows and PhDs from over 70 countries last year. The School's executive education department serves 6,000 executives and 60 corporate clients on its programmes every year. London Business School is based in the most accessible and international city in the world and is one of only two business schools in the UK to be awarded a six-star (6*) rating by the Higher Education Funding Council for England (HEFCE), confirming the School as a centre of world-class research in business and management. For information, visit www.london.edu
Babson College, Wellesley, Mass., USA, is recognised internationally as a leader in entrepreneurial management education. Babson grants BS degrees through its innovative undergraduate programme and grants MBA and custom MS and MBA degrees through the F.W. Olin Graduate School of Business at Babson College. Babson Executive Education offers executive development programmes to experienced managers worldwide. For information, visit www.babson.edu.
The GEM report: This is the sixth annual Global Entrepreneurship Monitor (GEM) cross-national assessment of entrepreneurship. Started in 1999 with 10 participating countries, the project has expanded to include 34 countries in 2004, representing a total labour force of 784 million.
The GEM programme is a major effort aimed at describing and analyzing entrepreneurial processes within a wide range of countries. The programme has three main objectives:
- To measure differences in the level of entrepreneurial activity between countries
- To uncover factors leading to appropriate levels of entrepreneurship
- To suggest policies that may enhance the national level of entrepreneurial activity
New developments, and all national reports, can be found at www.gemconsortium.org. The programme is sponsored by London Business School and Babson College.
Copies of GEM 2004 Financing and GEM 2004 Global reports are available at www.gemconsortium.org
GEM Lead Researchers: Zoltan J Acs, Pia Arenius, William D Bygrave, Michael Hay, Maria Minniti, Babson College and London Business School.
________________________
Produced for London Business School
CONTACT:
Kerry Taylor
kerrytaylor@london.edu
+44 (0) 20 7706 6972
Claire Prentice
cprentice@london.edu
+44(0) 20 7706 6866
Michael Chmura
mchmura@babson.edu
781-239-44549
Barbara Blair
blairb@babson.edu
781-239-4621
More about the study:
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