Global

Entrepreneurship

Monitor

Global

Entrepreneurship

Monitor

1

Niels Bosma, Global Entrepreneurship Research Association, Utrecht University

Rolf Sternberg, Johannes von Bloh, Alicia Coduras

ICSB-OECD-Ipag Essca Paris Conference, The Future of Entrepreneurship: Policy and Practice Conference, 9 April 2019

A NEW HARMONIZED APPROACH BASED ON GLOBAL ENTREPRENEURSHIP MONITOR DATA

DIAGNOSING REGIONAL ENTREPRENEURIAL ECOSYSTEMS

Global Entrepreneurship Research Association

www.gemconsortium.org

Global

Entrepreneurship

Monitor

THIS PRESENTATION: DUAL PURPOSE

• Academic: advancing research on entrepreneurial ecosystems

• Quantitative empirical approach; combining individual level and expert data

• Based on framework introduced by Stam (2015)

• Kick starting a global research & policy community on entrepreneurial ecosystems

• Tapping into GEM’s expertise worldwide (400 researchers)

• Harmonized data collection procedures, allowing for benchmarks and diagnoses

• Lean approach (?!)

Global

Entrepreneurship

Monitor

IDENTITY CARD OF GEM

• Founded by Bill Bygrave (Babson College) and Michael Hay (London Business School)

• First report 1999 - nine OECD countries (Canada, Denmark, Finland, France, Germany, Italy, Japan, UK, USA) + Israel

• Around 60 countries are participating on yearly basis

• 85 – 90% of the world’s GDP; 68 – 75% of the world’s population

• Involving 400 researchers around the world

• academic teams in each participating economy

• Huge database of individual respondents (adult population survey) and experts (expert survey)

• Numerous academic articles, high impact on entrepreneurship research and policy

Global

Entrepreneurship

Monitor

GEM COVERAGE OF THE WORLD19992018

Global

Entrepreneurship

Monitor

GEM 2018-2019 GLOBAL REPORT: ENTREPRENEURSHIP OF ALL KINDS

Global

Entrepreneurship

Monitor

Social, Cultural, Political, Economic

Context

National Framework Conditions

Entrepreneurial Framework Conditions

Basic Requirements

Efficiency Enhancers

Innovation & Business Sophistication

Outcome(socioeconomic development)

Entrepreneurial Output(new jobs, new value added)

Entrepreneurial ActivityBY PHASE: Nascent, new,

established, discontinuation

BY IMPACT: High growth, innovative, internationalization

BY TYPE: TEA, SEA, EEA

Societal Values About Entrepreneurship

Individual Attributes (psychological, demographic, motivation)

From conceptual framework to composite indices + dashboard of indicators

Evidence-based policies

Global

Entrepreneurship

Monitor

THE CASE FOR A REGIONAL APPROACH

• Entrepreneurship as ‘a regional event’ (Feldman 2001)

• Social context (Hindle 2010),

• Networks (e.g. Huggins and Thompson 2015), Knowledge production and diffusion (e.g. Audretsch and Lehmann 2005),

• Knowledge-spillover (e.g. Feldman 1994, Glaeseret al. 1992),

• Agglomeration and urbanization (Bosma and Sternberg 2014)

• Cross-regional variation in entrepreneurial activity tends to exceed cross-national variation (Bosma 2009)

Global

Entrepreneurship

Monitor

• Entrepreneurial ecosystem: “a set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory” (Stam & Spigel 2017)

• In most approaches: a set of 7-12 ‘crucial elements’ (Feld 2012, Stam 2015, Spigel 2015)

• End goal: aggregate value creation

o Economic growth / productivity

o Social value / equality

o Environmental value

ENTREPRENEURIAL ECOSYSTEMS – BUZZ OR RELEVANT NEW APPROACH?

12-4-2019

Global

Entrepreneurship

Monitor

12-4-20199

Williamson 2000 Spigel 2015

Entrepreneurship as part of resource allocation and employment continuous

Plays of the game (governance) 1-10

Embeddedness (informal institutions; culture) 102 to 103

Rules of the game (formal institutional environment) 10 to 102

Institutional Economics

Entrepreneurial Ecosystems

Time scales of change fordifferent types of institutions

Categories of attributes in entrepreneurial ecosystem

Stam 2015

Global

Entrepreneurship

Monitor

Formal institutionsFramework conditions

Systemicconditions

Culture

Networks Leadership Finance Talent

Physical infrastructure Demand

KnowledgeSupport services /

intermediaries

Aggregate Value CreationOutcomes

Outputs Entrepreneurial Activity

Entrepreneurial Ecosystem Elements

Entrepreneurial Ecosystema set of interdependent actors and factors coordinated in such a way that they enable productive entrepreneurship within a particular territory (Stam & Spigel 2017)

Global

Entrepreneurship

Monitor

Ten Entrepreneurial Ecosystem Conditions, measured by

1. A set of Adult Population Survey questions in the region (N=500). One dedicated additional question was asked in comparison to the regular GEM APS survey

2. An EES specific Regional Expert Survey (RES) which targets local EES actor groups covering each SEC.

• Independent from GEM’s regular National Expert Survey

The overall EEC Index:

EECI = b1·NT + b2·LD + b3·FN + b4·TL + b5·KW + b6·SV + b7·FI + b8·CT + b9·PI + b10·DM

• With b1 to b10 being the weights for the 10 re-scaled SECs

METHOD: BASIC STRUCTURE

12-4-2019

Global

Entrepreneurship

Monitor

METHOD: PRETEST IN THREE REGIONS

12-4-2019

Global

Entrepreneurship

Monitor

EXAMPLE: PILLAR LEADERSHIP

12-4-2019

Global

Entrepreneurship

Monitor

3

4

5

6

7

8

Networking

Talent

Leadership

Formal Institutions

Culture

Demand

Infrastructure

Services and intermediaries

Finance

Knowledge

Average scores 0-10 points

Catalonia

Madrid

Hannover

• Input for focus group sessions

• Adjust conclusions, determine policy implications

Global

Entrepreneurship

Monitor

• Entrepreneurs operate in (complex) entrepreneurial ecosystems

• Dealing with, and embracing, uncertainty (cf. Sarasvathy 2001; Alvarez & Barney 2007)

• Lack of entrepreneurship in economic models (Baumol 1968!)

• Need for identifying key patterns and interactions in the ecosystem

DISCUSSION

Global

Entrepreneurship

Monitor

• Quantitative empirical approach

• Making sense out of complex environments adopting a harmonized approach (call to action/collaboration)

• Open for improvements

• E.g. combining with other data sources

• Exploring the use of new data collection methodologies

CONTRIBUTIONS AND LIMITATIONS

Global

Entrepreneurship

Monitor

• Entrepreneurs operate in (complex) entrepreneurial ecosystems, difficult to pinpoint what exactly needs to be done and how policy success / failure can be measured

• Importance of appreciating local context, next to national contexts

• Need for identifying key patterns and interactions in the ecosystem, before taking policy actions

• Takes a holistic, harmonized and persistent approach

• A call for feedback and collaboration!

POLICY IMPLICATIONS

Global

Entrepreneurship

Monitor

THANK YOU!

Niels Bosma

Chair of the GERA Board

Associate Professor Entrepreneurship

Academic Director Utrecht Center for Entrepreneurship

Cofounder Utrecht University Social Entrepreneurship Initiative

n.s.bosma@uu.nl

Credits

Von Bloh, J.; Coduras, A. (2018), Sternberg, R. GEM Entrepreneurial Ecosystem Index 2018 Pilot Report. Internal Report. Global Entrepreneurship Research Association.

Global

Entrepreneurship

Monitor

SOURCES

• Audretsch, D.B., Lehmann, E.E. (2005): Does the Knowledge Spillover Theory of Entrepreneurship hold for regions? In: Research Policy 34 (2005):1191–1202.

• Bosma, N.; Sternberg, R. (2014): Entrepreneurship as an urban event? Empirical evidence from European cities. In: Regional Studies 48(6), 1016-1033.

• Feldman, M.P. (2001): The Entrepreneurial Event Revisited: Firm Formation in a Regional Context. Industrial and Corporate Change, 2001, Vol. 10, Issue 4, S.861-891.

• Glaeser, E.L., Kallal, H.D., Scheinkman, J.A., Shleifer, A. (1992): Growth in cities. In: Journal of Economic Geography, 1:27-50.

• Hindle, K. (2010): How community context affects entrepreneurial process: A diagnostic framework. In: Entrepreneurship & Regional Development: An International Journal, 22:7-8,599-647, DOI: 10.1080/08985626.2010.522057

• Mason, C., Brown, R. (2014): Entrepreneurial Ecosystems and growth oriented Entrepreneurship. Background paper prepared for the workshop organised by the OECD LEED Programme and the Dutch Ministry of Economic Affairs on Entrepreneurial Ecosystems and Growth Oriented Entrepreneurship. The Hague, Netherlands, 7th November 2013.

• Stam, E. (2015): Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique. European Planning Studies, 23:9, 1759-1769. DOI: 10.1080/09654313.2015.1061484.

• Stam, E., Spigel, B. (2017): Entrepreneurial Ecosystems. In: Blackburn, R., De Clercq, D., Heinonen, J., Wang, Z. (Hrsg.) (2017): Handbook for Entrepreneurship and Small Business. London: SAGE.

• Sternberg, R., von Bloh, J., Coduras, A. (forthcoming): No theory without empirics - a proposal to measure entrepreneurial ecosystems at the regional level. In: Zeitschrift für Wirtschaftsgeographie

• von Bloh, J., Coduras, A. Sternberg, R. (2018): GEM Entrepreneurial Ecosystem Index 2018 Pilot Report. Internal report for RIAC issued by GERA.