Entrepreneurial Activity in European Regions · Entrepreneurial Activity in European Regions Niels...
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Entrepreneurial Activity in European Regions Niels Bosma From Business Growth to Economic Development 16 December 2016 Public University of Navarra & Obra Social La Caixa – CAN Foundation
Transcript of Entrepreneurial Activity in European Regions · Entrepreneurial Activity in European Regions Niels...
Entrepreneurial Activity in
European Regions
Niels Bosma
From Business Growth to Economic Development
16 December 2016
Public University of Navarra &
Obra Social La Caixa – CAN Foundation
Outline
• Entrepreneurship in European Regions
• Drivers of Regional Differences in
Entrepreneurship
• Introducing Entrepreneurial Ecosystems: case
of the Netherlands
• Provisional (!) Diagnose Navarre Region
Entrepreneurship
in European Regions
Evidence from
Global Entrepreneurship Monitor Data
• World’s foremost study on entrepreneurship: seewww.gemconsortium.org and http://www.gem-spain.com/
• Primary data collection– Adult Population Survey: behaviour & attitudes
– National Expert Survey: context / ecosystem
• Since 1999; 17 years of comparable data across over 100 countries
• Involves over 300 academic and research institutions acrossthe globe
• Substantial coverage for European countries� Regional measures by merging several years’ data
� Next slides provide a first glance of the entrepreneurship differences across European regions
Global Entrepreneurship Monitor
“There are good opportunities to start a
business in the area where I live”
2007-2011 2012-2014
“Fear of failure would prevent me from starting
a business”
“Successful entrepreneurs receive high status”
Total early-stage Entrepreneurial Activity (TEA)
2007-2011 2012-2014
Total early-stage Entrepreneurial Activity (TEA)
Opportunity Motivation 2007-2014 Necessity Motivation 2007-2014
Recent News in NL: Thumbs up …
1
10
4
7
2
5
8
3
6
9
Economy Score1 Prev.2 Trend3
Switzerland 5.81 1
Singapore 5.72 2
United States 5.70 3
Netherlands 5.57 5
Germany 5.57 4
Sweden 5.53 9
United Kingdom 5.49 10
Japan 5.48 6
Hong Kong SAR 5.48 7
Finland 5.44 8
World Economic ForumGlobal Competitiveness Report 2016-2017
OECDEntrepreneurship at a Glance 2016
What do the data show?
0
100
200
300
400
500
600
700
800
900
Without personnel With personnel
0%
1%
2%
3%
4%
5%
6%
7%
8%
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014
Non-ambitious IEA Ambitious IEA
GEM Data: Independent early-stage
Entrepreneurial Activity (TEA)Dutch Self-Employment Statistics
Source: Liebregts, W. (2016) Institutional explanations for patterns of entrepreneurial activity:
The case of the Dutch task market. FIRES Working Paper D5.3
Ambitious early-stage Entrepreneurial Activity
TEA with high job-expectation (% of TEA) TEA with innovative orientation (% of TEA)
Drivers of Regional Differences in
Entrepreneurship
From: Stam, Erik & Bosma, Niels (2014). Growing Entrepreneurial Economies:
Entrepreneurship and Regional Development. In T. Baker & F. Welter (Eds.), The
Routledge Companion to Entrepreneurship, pp. 325-340. London: Routledge
Regional Conditions for
Entrepreneurship
• Compositional Factors
– Spatial distribution of (potential) entrepreneurs
• Personal characteristics such as age, education, household income (e.g. Bosma et al. 2009)
• Personality characteristics such as extraversion andopenness (e.g. Obschonka et al. 2015)
– Local inertia of entrepreneurs (Michelacci & Silva 2007; Figueiredo et al. 2002)
• Localised (strong) social ties
• Hybrid startup possibilities
• Local business network
Regional Conditions for
Entrepreneurship
• Contextual factors
– Entrepreneurship as a social (family) phenomenon
– Entrepreneurship as an organisational product
– Regional culture
– Nature and localisation of industries
• Clusters, localization econmies and related variety
– Urbanisation
– Regional formal institutions
– Regional knowledge production
– Regional access to financial capital
� Key: Interlinkages between these contextual factors!
Entrepreneurial Ecosystems
What’s Behind?
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 2016)
Knowledge Triangle
at the heart of the Entrepreneurial Ecosystem
I. Talent (human capital) = necessary input to
(knowledge based) entrepreneurship
II. Creation of knowledge based
entrepreneurial opportunities
III. Entrepreneurial action: Discovery and
exploitation of knowledge based
entrepreneurial opportunities (innovation)
Formal
institutions
Framework
conditions
Systemic
conditions
CulturePhysical
infrastructure
Aggregate Value CreationOutcomes
Outputs Entrepreneurial Activity
Networks
Leadership
Entrepreneurial Ecosystem & Knowledge Triangle
Interaction &
direction of
actorsFinance Talent Knowledge Regional Governance
Stam, E., Romme, A., Roso, M., Toren, J. v., & Starre, B. v. (2016). Knowledge Triangles in the Netherlands: An Entrepreneurial Ecosystem
Approach. Utrecht University | Eindhoven University Of Technology | Birch Consultants. Commissioned by the OECD, The Dutch Ministry
of Economic Affairs, The Dutch Ministry Of Education, Culture & Science, And The Dutch Centres Of Entrepreneurship
Stam, E. (2015). Entrepreneurial Ecosystems and Regional Policy: A Sympathetic Critique. European Planning Studies, 1759-1769.
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Five Case Studies NL
Qualitative and quantitative:
• Metropolitan Region Amsterdam (MRA)
• Twente
• Brainport
Quantitative
• Utrecht
• South-Holland
Evidence from the study in NL regions
1. The least well developed Entrepreneurial
Ecosystems (EE) have no fully developed
Knowledge Triangle (Universities missing)
2. Involvement of regional business leaders in
regional governance is rare
3. Better developed Entrepreneurial Ecosystems
tend to have more diverse innovation
networks, not necessarily more dense
Implications for Productive
Entrepreneurship
• Can be enabled by (effective) leadership, but
also thrives without (Amsterdam, Utrecht)
• Interaction of education and knowledge
institutes without involvement of business
innovators = ineffective
• Independent Entrepreneurs &
Entrepreneurial Employees
Provisional ‘Diagnose’ Navarre Region
-2
-1
0
1
Perceived Opportunities
Perceived capabilities
Fear of failure
Startup intentions
Belief: entrepreneurship
good career choice
Belief: high status to
successful entrepreneurs
nascent entrepreneurshipOwner-managers in new
firms
Total early-stage
Entrepreneurial Activity…
Owner-managers in
established firms
TEA & expects at least five
employees
Innovative orientation (% of
TEA)
International orientation (%
of TEA)
Navarre Spain Average benchmark regions
Provisional ‘Diagnose’ Navarre Region
-2
-1
0
1
Perceived Opportunities
Perceived capabilities
Fear of failure
Startup intentions
Belief: entrepreneurship
good career choice
Belief: high status to
successful entrepreneurs
nascent entrepreneurshipOwner-managers in new
firms
Total early-stage
Entrepreneurial Activity…
Owner-managers in
established firms
TEA & expects at least five
employees
Innovative orientation (% of
TEA)
International orientation (%
of TEA)
Navarre Spain Average benchmark regions
What do we get out of this?
• Regional differences in entrepreneurship
• No such thing as ONE overall entrepreneurship indicator
• Cultural / institutional drivers at the base of the entrepreneurial ecosystem
• Importance of the knowledge triangle and the involvement of businesses in education
• GEM adult population survey indicators to be linked to Expert opinions– Use as input for group discussions; try to assess the interlinkages
• Determine an appropriate entrepreneurship policy– Acknowledging the cultural / institutional base
– Involving the relevant stakeholders
– Including the role role of entrepreneurial employees
Entrepreneurial Activity in
European Regions
Niels Bosma
From Business Growth to Economic Development
16 December 2016
Public University of Navarra &
Obra Social La Caixa – CAN Foundation
