Global Entrepreneurship: Helping the Economy Recover

Dr. Lorrie McGovernLaFern K. BatieJonathan Norris

Overview

• Lorrie McGovern:

• Welcome & Introductions

• An introduction to Entrepreneurship

• Jon Norris:

• The top 10 global entrepreneurship rankings for 2011

• Comparison between Singapore, Hong Kong/China, Taiwan and the United States

• LaFern Batie:

• Best practices in entrepreneurship

• Panel Discussion

• Wen Chung: Panelist – Taiwan

• Anthony “Tony” Gaeto: Panelist - China

• Conclusion

ENTREPRENEUR

• http://www.merriam-webster.com/dictionary/entrepreneur

• One who organizes, manages, and assumes the risks of a business or enterprise

http://www.yourmoneydictionary.com/Entrepreneur.aspx

ENTREPRENEURSHIP

• http://www.businessdictionary.com/definition/entrepreneurship.html

• The capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward.

• Entrepreneurial spirit is characterized by innovation and risk-taking, and an essential component of a nation’s ability to succeed in an ever changing and more competitive global marketplace.

http://www.getentrepreneurial.com/entrepreneurship/what_is_true_entrepreneurship.html

http://www.sba.gov/

• Small business – 500 or fewer employees

• More than 50 percent of non-farm private GDP

• Approximately 27.5 million businesses; many family owned

• Employ approximately half of the private sector workforce

• Nearly all businesses start as a small business

• Critical to economic growth and job creation

• Hit hard by economic challenges during 2008 and 2009:

• Number of new start-ups dropped by approximately 11.8%

• Number of bankruptcies increased by approximately 40%

How Important Are Small Businesses to the U.S. Economy?

http://www.smallbusinessnotes.com/small-business-resources/how-important-are-small-businesses-to-the-us-economy.html

• Represent 99.7 percent of all employer firms.

• Employ half of all private sector employees.

• Pay 45 percent of total U.S. private payroll.

• Generated 60 to 80 percent of net new jobs annually over the last decade.

• Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.

• Are employers of 41 percent of high tech workers (such as scientists, engineers, and computer workers).

• Are 53 percent home-based and 3 percent franchises.

• 97 percent of all identified exporters.

Federal Reserve Chairman, Ben Bernake

• November 10, 2011

• Conference on Small Business Entrepreneurship

• Confirmed the importance of small businesses

• Critical component to drive the economic recovery.

• Small businesses support local communities.

• Agility of small business helps bring innovative products to the global marketplace.

• Entrepreneurship provides an option for people who have insufficient retirement savings.

http://blogs.wsj.com/in-charge/2011/11/10/bernanke-small-businesses-important-to-economic-recovery/

Where Will Jobs Come From?http://www.kauffman.org/uploadedfiles/where_will_the_jobs_come_from.pdf

• The Kauffman Foundation is the world's largest foundation devoted to entrepreneurship.

• Authors Litan and Stangler (Nov. 2009), census data reveals that two-thirds of new job growth comes from firms that are between one and five years old.

• Job creation comes from three sources:

• startups;

• young firms, ages one to five; and

• the largest and oldest companies.

• “New and young companies and the entrepreneurs that create them are the engines of job creation and eventual economic recovery.”

Exporting Advantageshttp://www.sba.gov/content/where-will-your-next-customer-come-look-around-world

• Ninety-six percent of the world’s consumers live outside of the United States

• Exporting helps businesses weather downturns in the domestic economy.

• U.S. businesses have a competitive advantage for producing high-quality, innovative goods and services.

• Advancements in e-commerce and logistics have lowered the costs of doing business overseas.

• Free trade agreements have opened up markets in Australia, Chile, Singapore, Jordan, Israel, Canada, Mexico, and Central America, creating more opportunities for U.S. businesses.

• What type of business can be a successful exporter: Any business

Exporting Mythshttp://www.sba.gov/content/where-will-your-next-customer-come-look-around-world#1

1. Too risky

2. Too complicated

3. Domestic market is secure and companies can depend on it

http://www.japanmattersforamerica.org/2011/06/us-asia-export-growth/

Global Entrepreneurship

• Critical to the development and well-being of society.

• Drives and shapes innovation, speeding up structural changes in the economy

• Create jobs

• Provides new competition, contributing directly to productivity

• A catalyst for economic growth and national competitiveness.

http://www.unleashingideas.org/

What Drives Entrepreneurship?

Global Entrepreneurship Monitor (GEM) groups the participating economies into three levels:

1. Factor Driven

2. Efficiency Driven

3. Innovation Driven

Factor-Driven Efficiency- Driven Innovation-Driven

Sub-Saharan AfricaAngola* Ghana, Uganda,

Zambia South Africa

Middle East/North Africa (MENA) - South Asia

Egypt*, Iran*, Pakistan, Saudi Arabia*, West Bank

and Gaza Tunisia Israel

Latin America and Caribbean

Jamaica*, Guatemala*, Bolivia

Argentina, Brazil, Chile*, Columbia, Costa Rica, Ecuador, Mexico,

Peru, Trinidad and Tobago*, Uruguay*

Eastern Europe

Bosnia and Herzegovina, Croatia*,

Hungary*, Latvia, Macedonia,

Montenegro, Romania, Russia, Turkey Slovenia

Asia Pacific VanuatuMalaysia, China,

Taiwan*Australia, Japan, Republic of

Korea

United States and Western Europe

Belguim, Denmark Finland, France, Germany, Greece,

Iceland, Ireland, Italy, Netherlands, Norway, Portugal,

Spain, Sweden, Switzerland, United Kingdom, United States

* In transition to the next stage

Entrepreneurial Measures

• World Bank’s Ease of Doing Business Rankings

http://www.doingbusiness.org/rankings

• Global Entrepreneurship Monitor Reports

http://www.gemconsortium.org/

So who in the world is Entrepreneurial?

EconomyEase of Doing Business Rank ▲

Starting a Business

Dealing with Construction Permits

Getting Electricity

Registering Property

Getting Credit

Protecting Investors

Paying Taxes

Trading Across Borders

Enforcing Contracts

Resolving Insolvency

Singapore 1 4 3 5 14 8 2 4 1 12 2

Hong Kong SAR, China

2 5 1 4 57 4 3 3 2 5 16

New Zealand

3 1 2 31 3 4 1 36 27 10 18

United States

4 13 17 17 16 4 5 72 20 7 15

Denmark 5 31 10 13 11 24 29 14 7 32 9

Norway 6 41 60 12 8 48 24 27 9 4 4

United Kingdom

7 19 22 60 68 1 10 24 13 21 6

Korea, Rep. 8 24 26 11 71 8 79 38 4 2 13

Iceland 9 37 34 1 11 40 46 35 81 3 11Ireland 10 13 27 90 81 8 5 5 21 62 10

Comparing the United States with China/Hong-Kong, Singapore and Taiwan

• United States

• Singapore

• China

• Taiwan

Starting a Business

Economy YearEase of Doing Business Rank

Starting a Business -

Rank

Starting a Business -Procedures (number)

Starting a Business -

Time (days)

Starting a Business - Cost (% of income

per capita)

Starting a Business -Paid-in Min. Capital (% of income per capita)

China2012 91 151 14 38 3.5 100.4

Singapore2012 1 4 3 3 0.7 0

Taiwan, China 2012 25 16 3 10 2.5 0

United States 2012 4 13 6 6 1.4 0

Dealing with Construction Permits

Economy YearEase of Doing Business Rank

Dealing with Construction

Permits - Rank

Dealing with Construction

Permits -Procedures (number)

Dealing with Construction

Permits - Time (days)

Dealing with Construction Permits - Cost (% of income

per capita)

China2012 91 179 33 311 444.1

Singapore2012 1 3 11 26 18.1

Taiwan, China 2012 25 87 25 125 41.9

United States 2012 4 17 15 26 12.8

Registering Property

Economy YearEase of Doing Business Rank

Registering Property - Rank

Registering Property -Procedures (number)

Registering Property -Time (days)

Registering Property -Cost (% of property

value)

China2012 91 40 4 29 3.6

Singapore2012 1 14 3 5 2.8

Taiwan, China

2012 25 33 3 5 6.2

United States

2012 4 16 4 12 0.8

Getting Credit

Economy Year

Ease of Doing

Business Rank

Getting Credit -

Rank

Getting Credit -Strength of legal

rights index (0-10)

Getting Credit - Depth of credit information

index (0-6)

Getting Credit -Public registry coverage (% of

adults)

Getting Credit -Private bureau coverage (% of

adults)

China2012 91 67 6 4 82.5 0

Singapore2012 1 8 10 4 0 53.8

Taiwan, China 2012 25 67 5 5 0 90.9

United States 2012 4 4 9 6 0 100

Protecting Investors

Economy Year

Ease of Doing

Business Rank

Protecting Investors -

Rank

Protecting Investors - Extent of

disclosure index (0-10)

Protecting Investors -Extent of director

liability index (0-10)

Protecting Investors -Ease of shareholder

suits index (0-10)

Protecting Investors -Strength of investor protection index (0-

10)

China2012 91 97 10 1 4 5

Singapore2012 1 2 10 9 9 9.3

Taiwan, China 2012 25 79 7 4 5 5.3

United States 2012 4 5 7 9 9 8.3

Paying Taxes

Economy Year

Ease of Doing

Business Rank

Paying Taxes -Rank

Paying Taxes -Payments

(number per year)

Paying Taxes - Time (hours

per year)

Paying Taxes -

Profit tax (%)

Paying Taxes -Labor tax and contributions

(%)

Paying Taxes -

Other taxes (%)

Paying Taxes -Total tax rate (%

profit)

China2012 91 122 7 398 5.9 49.6 7.9 63.5

Singapore2012 1 4 5 84 6.5 15.9 4.7 27.1

Taiwan, China 2012 25 71 15 245 13.7 18.4 3.5 35.6

United States 2012 4 72 11 187 27.6 10 9.1 46.7

Trading Across Borders

Economy Year

Ease of Doing

Business Rank

Trading Across

Borders - Rank

Trading Across Borders -

Documents to export

(number)

Trading Across

Borders -Time to export (days)

Trading Across Borders - Cost to export (US$ per

container)

Trading Across Borders -

Documents to import (number)

Trading Across

Borders -Time to import (days)

Trading Across Borders - Cost to import (US$ per

container)

China

2012 91 60 8 21 500 5 24 545

Singapore2012 1 1 4 5 456 4 4 439

Taiwan, China 2012 25 23 6 12 655 6 12 720

United States 2012 4 20 4 6 1,050 5 5 1,315

Enforcing Contracts

Economy YearEase of Doing Business Rank

Enforcing Contracts -

Rank

Enforcing Contracts - Time

(days)

Enforcing Contracts - Cost (% of claim)

Enforcing Contracts -Procedures (number)

China2012 91 16 406 11.1 34

Singapore2012 1 12 150 25.8 21

Taiwan, China 2012 25 88 510 17.7 45

United States 2012 4 7 300 14.4 32

Resolving Insolvency

Economy YearEase of Doing Business Rank

Resolving Insolvency - Rank

Resolving Insolvency -Time (years)

Resolving Insolvency -Cost (% of estate)

Resolving Insolvency -Recovery rate (cents on the

dollar)

China2012 91 75 1.7 22 36.1

Singapore2012 1 2 0.8 1 91.3

Taiwan, China 2012 25 14 1.9 4 82.1

United States 2012 4 15 1.5 7 81.5

Best Practices In Entrepreneurship

Solid Business

Performance

Effective Leadership

Strategic Plan/

Roadmap

Alignment & Execution

Disciplined Organization

Business Development

Strong Collaboration

Effective Leadership

Change Leadership

Staff Development

Business Acumen

Executive Coaching

Copyright © 2011 The Batie Group. All Rights Reserved.

Strategic Planning: Road Map

Clear Vision

Regularly Measured Progress

Global

Identified Impact

Resource Planning

Reviewed and

Validated

Copyright © 2011 The Batie Group. All Rights Reserved.

Product/Service Planning

Copyright © 2011 The Batie Group. All Rights Reserved.

Planning

Marketing

Outlets

Partners

Top 100

When to

Launch

Demo-

graphics

Multiple Genera-

tions

B2B

B2C

Disciplined Organization

Systems

Processes

Repeatability

Information Assurance

Copyright © 2011 The Batie Group. All Rights Reserved.

Communications

Business Development

Branding • Internal/External

Marketing• Traditional/Social

Media

Value-based Selling

• Right-fit Market

Copyright © 2011 The Batie Group. All Rights Reserved.

Collaboration

Power Partnerships

Key Relationships

Professional Advisory Board

Mentors/Sponsors

Partnerships vs. Memberships

Copyright © 2011 The Batie Group. All Rights Reserved.

Panelists:

Dr. Wen Y Chung Anthony Gaeto

“Conclusions”

“Questions”