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Entrepreneurship policy and support measures- global trends and
national challenges Session 1 “Local Government Support
Growing ICT” , Brown Forum 2015 Osijek
Antonija MršićHead of Sector for International Cooperation and Innovation, Ministry of Entrepreneurship
and Crafts
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„Learning economy”
Productivity growth results from:
· R&D – effects reflecting onto other sectors as well· Promoting human capital- when migrating fromoganization/sector/geographical area into another, reflects positive effects onto others · Migration of management know-how (management is the most significant social innovation of the 20th century Porter) how to coordinate existing resources for optimal results – economic and social, positive and sustainable effect) · Institutional development, which was established also in one sector and is reflected onto others
Stiglitz and Greenwald, 2014.
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Challenges: cover the wholedevelopment „tree”
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Other (useful) views on entrepreneurship
Individual-entrepreneur who builds a successful business out of nothing or over night is just a MYTH
For building a conducive environment for entrepreneurship all elements have to be developed:• Simultaneously• Continuously
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Global Entrepreneurship index, GEDI
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SME vs. Entrepreneurship
• SME policy: interventions aimed at existing, traditional enterprises
• Entrepreneurship policy: interventions aimed at creation of new businesses
• Recent trends:– In the EU – recognizing the distinction, but focus on SMEs and
industry, startups only within Digital Agenda– In the US- advancing, separation of administration?– In HR- EU, as of 2015 new, specific measures for startups
BUT WHAT FOSTERS ENTERPRENERUSHIP?
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US startup-ecosystem
• 2 most commonly used strategies to promote entrepreneurship– creating public venture funds and – business incubators
• often neglect an essential principle: connectivity and learning by entrepreneurs
• No clear evidence that more incubators or VC investment contribute to entrepreneurship growth
Source: Guidelines for Local and State Governments to PromoteEntrepreneurship, Kauffman Foundation, 2015.
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Change of policy shaping process
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Dynamic environment- inspirational environment
• global world - entrepreneurs who work in a dynamic connected environment and learn faster benefit
• Sources of learning: – from others (firms, sectors, cultures…) via cooperation and
exposal to new knowledge, new and different - creativity and innovation stem from diversity and stepping out of the box
• Internationalization: finding new markets– ICT and digital technology makes new markets and new
cultures closer– More productive companies have better chances to go
international – positive correlation between ICT capacities and willingness
of entrepreneurs to export (EU, Helping Firms Grow, 2014)
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EU SME policy
• SBA Revision - Sept.-Dec. 2014- public consultations:• ~ 1800 replies, < 60% from entrepreneurs
Top comments (concerns):• administrative and legislative burden • access to finance remains difficult • promoting entrepreneurship at an “early stage”
and supporting youth start-ups needed• a strong support on the need to tackle the lack
of skills in SMEs• A NEED FOR MORE ENTREPRENERUSHIP POLICY?
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Croatia- a needed change of policy instruments
• Project-> company ->
• company/industry/sector->
• High-tech ->
• Intervention logics: directsupport ->
• Incubators (buildings) ->
• Static ->
eco-system
cooperation/cross-sectoralapproach
high impact
framework support
networking and learning platforms, co- working
dynamic/learning environment
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ICT sector in Croatia- IndustrialStrategy 2014-2020
• ICT sector- trends show stability, independancefrom import
• Criteria for selecting drivers or industy:– growth in export– profitability and – Size od subsector– Computer programming recognized as the DRIVER
But fostering ICT eco-system is more than industry sector perspective- ICT applied in other industries should count AND creating new, high-growth enterprises
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ICT usage/application – some statistics
• Croatian firms: high level of ICT integration in doing business:– 96% firms use computers– 96% has Internet access– 66% has web-page
• 96% use broadband Internet, 66% mobile broadband access
• 13% of the overall sales is done online• 37% firms use social media • 22% use cloud technology
Source: SSO, preliminary results, Dec.2014
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Smart specialization strategy (draft) -priorites for HR
Smart Specialization Strategy, draft, March 20145
Horizontal: KETs +ICT, Tourism, CCI, Smart Skills, Social Challenges
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MEC- support measures
• Entrepreneurial Impulse• EU funds- ERDF- 1 bil €
2014-2020• Regulatory framework
(fiscal …) in 2015• Building framework:
demand for ICT, innovative/creativeservices
Entrepreneurship promotion (culture, entrepreneurial learning and idea validation)
BSO (space+ mentorship)
Financial instruments (grants, co-investment, loans, VC in preparation) for innovation projects/startups/TT/
ICT application
International cooperation,
promotion and networking
Building blocks of entrepreneurial eco-system
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Challenges for (local) governemnts
• What is needed:– continuous political will and commitment – Coordination& synergy of relevant public institutions/levels and
their activities– Capacity building for policy creation and analysis within
institutions– Retention of institutional knowledge (memory)– Include a various group of interested parties in policy shaping
process (to reduce information asymmetry) – not justcopy/paste what Sillicon Valley or others do, or wethink they do!!
– Strategy document is not the end- it is the middle of policy process- we have to tackle implementation deficit
– Evaluation of policies- have they achieved the desired goals or not? If not, why?
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Question for Farmeron
• Relocating e.g. sales departments, but contributing still to the national economy (hiringpeople, paying taxes, sharing knowledge - is it a pattern or a random (positive) case?
• If it could be a pattern- what are the invisible ingredients?
• How can we shift from BRAIN DRAIN to BRAIN CIRCULATION?
