Bolivia gedi2011-ra2012-2[1]

Zoltan J. Acs Center of Entrepreneurship and Public

Policy (CEPP)George Mason University

And Imperial College Business School

The Global Entrepreneurship and Development Index (GEDI)

© Zoltan Acs, CEPP 2012

Shaping The Future

“Making predictions is really hard, especially about the future.”

Yogi BeraNew York

Yankees


Stages of Economic Development over time


In an age where human ingenuity powers growth,

the question of the developing economies & their human capital becomes the

largest economic and social opportunity in the history of the world


Jedi Warrior – Killer App


Global Entrepreneurship and Development Index (GEDI)

Purpose:

GEDI Index is a tool.The purpose of the GEDI Index is to give the

world a “tool to support sustainable growth, and increased standards of living by measuring the contextual nature of successful entrepreneurship.


Support for entrepreneurs and entrepreneurship policy appears to be gaining acceptance globally

However, a real understanding of entrepreneurship & the successful implementation of policies that actually support and lead to the development of high impact firms is rare© Zoltan Acs, CEPP 2012

Why is true understanding of entrepreneurship and policy rare?

Entrepreneurship is a complex phenomenon with individuals, societal norms, economic, political, and educational institutions interacting around the future (the unknown)

Very difficult to understand (not to mention measure)


What do we mean by entrepreneurship?

High Impact Firms:

•Microsoft•Lenovo•Infosys

NOT: coffee shops, home based businesses, and self-employed

Some call them Gazelles, because they grow fast, employ people, growing partners/suppliers, & generally have deep impact on regional, national, or even international level


Global Entrepreneurship and Development Index (GEDI)

Created to capture the multidimensional nature of entrepreneurship

Employs qualitative as well as quantitative measures

Uses institutional and individual variables


What the GEDI sub-indexes tell us

Attitude measures society’s basic attitudes toward entrepreneurship through education and social stability.

Activity measures what individuals are actually doing to improve the quality of human resources and technological efficiency.

Aspiration measures how much of the entrepreneurial activity is being directed toward innovation, high-impact entrepreneurship, and globalization.


More powerful collectively

Attributes in the sub-indexes, are more powerful collectively than they are individually.

This makes true entrepreneurship, the killer application for sustainable economic development


More powerful collectively

In an efficiency-driven economy (manufacturing) individuals need to be encouraged to be entrepreneurs and start businesses.

In an innovation-driven economy (knowledge-based economy) some entrepreneurs need to create large and successful enterprise


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xRank Country Rank Country

1 Denmark 37 Poland2 Canada 38 Croatia3 USA 39 Peru4 Sweden 40 China5 New Zealand 41 Colombia6 Ireland 42 South Africa7 Switzerland 43 Turkey8 Norway 44 Mexico9 Iceland 45 Dominican Republic

10 Netherlands 46 Indonesia11 Australia 47 Hungary 12 Belgium 48 Romania13 Finland 49 Macedonia14 United Kingdom 50 Egypt15 Singapore 51 Morocco16 Germany 52 Jordan17 Puerto Rico 53 Panama18 France 54 India19 Slovenia 55 Brazil20 Korea 56 Venezuela21 Israel 57 Thailand22 Austria 58 Russia23 Hong Kong 59 Tunisia24 United Arab Emirates 60 Jamaica25 Czech Republic 61 Algeria26 Chile 62 Serbia27 Italy 63 Kazakhstan

28 Spain 64 Bosnia and Herzegovina29 Japan 65 Ecuador30 Saudi Arabia 66 Bolivia31 Malaysia 67 Syria32 Latvia 68 Guatemala33 Portugal 69 Iran34 Greece 70 Philippines35 Uruguay 71 Uganda36 Argentina


GEDI INDEXThe Global Entrepreneurship and Development Index GEDI is a collaboration between George Mason University, University of Pécs, and Imperial College Business School, London. The GEDI Index combines Global Entrepreneurship Monitor (GEM) data with data on country-level institutional conditions to estimate a country’s Entrepreneurial Attitudes, Aspirations, and Activities. Combined, these three pillars define the entrepreneurial character of a nation.

Each of the three pillars – Attitudes, Aspirations, and Activities – comprises several sub-pillars, such as Opportunity Perception, Cultural Support, Opportunity Start-Ups, Growth Aspirations and New Technology.

For the GEDI method, see www.thegedi.org.

www.thegedi.org


BoliviaBolivia’s overall 2011 GEDI score 0.16Bolivia’s overall 2011 GEDI rank #66

Size of population 2011 (in million): 9.9Per capita GDP in international US$ 2009 (PPP, World Bank): 4,278Level of development: factor driven

Rank in Doing Business Index 2010-2011: 161/183Rank in Global Competitiveness Index 2010-2011: 120/133Rank in Economic Freedom Index 2010-2011 130/179

Global Entrepreneurship and Development Index rank (point): 67 (0.16)Entrepreneurial Attitudes sub-index rank (point): 61 (0.22)Entrepreneurial Action sub-index rank (point): 58 (0.20)Entrepreneurial Aspirations sub-index rank (point): 69 (0.07)

Weakest pillar to improve (value): NEW TECHNOLOGY (0.03)Weakest variable to improve (value) BUSINESS RISK, TECHABSORB, INNOV(0.00)


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Bolivia at the GEDI Variable Level:

Worst Variables: INNOVATION 0.00TECHABSORPTION 0.00BUSINESS RISK 0.00

Best VariablesPOSSESS SKILLS 0.93IDENTIFY OPPORTUNITIES 0.80NONFEAR OF FAILURE 0.67


Bolivia at the GEDI Pillar Level:

WeaknessesWEAK NETWORKING 0.04HIGH LEVEL OF COMPETITION 0.16LITTLE NEW TECHNOLOGY 0.03

StrengthsPRESENCE OF STARTUP SKILLS 0.65OPPORTUNITY STARTUP 0.23INTERNATIONALIZATION 0.14


The relative position of Bolivia at the GEDI 2011 variable and pillar level


Policy ConclusionsIdentifying stages of economic development are

crucial for understanding entrepreneurship development

Simple measures of entrepreneurship do not workThe GEDI index which combines individual &

institutional data utilizing a novel Penalty for Bottleneck methodology tracks well

Institutions and people are critical components influencing entrepreneurial performance

People become more important agents in entrepreneurship development as we move from factor to efficiency to innovation (the three main stages of economic development).


Back to the Future: the World in 2050

Surging, Shifting Populations

Abundance of human capital Will we unleash the killer

application: entrepreneurship?

Can we use GEDI Index and others to focus investments, policies, and welcome 3 billion new global citizens to sustainable growth and improved standards of living


Date post:	13-Jan-2015
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