Post on 14-Jul-2015
Promo%ng Entrepreneurship in developing countries:
From Policy formula%on to program implementa%on
Alejandro Rubias, November 2014
Agenda
• Entrepreneurship and Employment trends • Entrepreneurship Policy Framework • Empretec
Entrepreneurship And Employment trends
Global Demographic and Employment Trends
Source: InternaIonal Labour OrganizaIon (2013) and Youth Business InternaIonal
Overall, the global youth unemployment rate is projected to rise to 12.8 per cent in 2018 Geographic dispariIes: in 2012, youth unemployment rates were at:
28.3%
IN THE MIDDLE EAST
23.7%
IN NORTH AFRICA
9.8%
IN EAST ASIA
9.3%
IN SOUTH ASIA
73.4 MILLION
YOUNG PEOPLE UNEMPLOYED
Who generates employment?
• Over the last 25 years the majority of private sector jobs were created by businesses under 5 years old
• In fact there is a stronger correlaIon between the age of a business and the ability to create jobs, rather than the size of the business
• Moreover new and young companies contribute to economic dynamism by injecIng compeIIon into markets and spurring innovaIon
Entrepreneurship for employment creaIon
Empretec contribute to job creation:
Source: Endeavor 2011 from companies across LaIn America to Africa, the Middle East, and Southeast
Source: Endeavor 2011 from companies across LaIn America to Africa, the Middle East, and Southeast
Entrepreneurship and new innovaIve firms create jobs and growth:
• Impact assessments from the Empretec Programme confirm the fact that invesIng in entrepreneurship development leads to job creaIon.
• E.g. In Brazil, entrepreneurs who benefi[ed from the Empretec workshop generated jobs and an average employment growth of 16% per year. • Likewise, in businesses surveyed, employment grew by 14% in the United Republic of Tanzania.
Entrepreneurship and the Informal Sector in developing countries
Source: Schneider, Buehn and Montenegro (2010)
• A lot of this entrepreneurial activity still happens outside the formal sector
• The crisis has increased informality in many developing countries. Globally, the average size of the informal sector is estimated at 34.5% of countries’ official GDP.
Size of informal sector (% of official GDP)
Entrepreneurship and employment creaIon in developing countries
• Developing countries such as Mongolia are creaIng new opportuniIes from the acIviIes of foreign companies and internal growth.
• But in order to seize these opportuniIes the local market and SME's in parIcular needs to have the sufficient producIve capacity.
• To develop this capacity, developing countries need to work on: – Regulatory and insItuIonal reforms for foreign and local private sector development – Programmes for achieving diversificaIon – Tackling the infrastructure challenge – Building knowledge and skills – Developing financial and business services – Unleashing the potenIal of tourism – PromoIng niche market programmes – PromoIng SME development and entrepreneurship for regional diversificaIon
Entrepreneurship and the Informal Sector in developing countries
• Entrepreneurship-friendly business environment reforms have helped to increase formal business registration, especially in developing countries …
Source: World Bank, Doing Business 2013
Entrepreneurship Policy Framework
Pedro 30 years
Pedro 10 years 16 years: high school 21 years: no advice: look for
a job or start-‐up? 25 years: dealing with the admin
26 years: First start-‐up HOT DOGS
28 years: tough to access credit
Scared to fail
THE STORY OF PEDRO: just a kid in Ecuador today Building an innovative and entrepreneurial country
Pedro-‐ 30 years Entrepreneur
Pedro-‐10 Years 16 years: Development of entrepreneurial competencies
21 years: Bootcamp on Entrepreneurship and
Innova%on
25 years: Public Private Partnership improving business
environment
28 years: Informa%on to create innova%ve
start ups
29 years: Access to Finance
Network support
THE STORY OF PEDRO BY 20-‐20
Building an innovative and entrepreneurial country
The UNCTAD Entrepreneurship Policy Framework comprises 6 areas that have a direct impact on entrepreneurial activity
UNCTAD’s Entrepreneurship Policy Framework
Entrepreneurship development requires an enabling entrepreneurship eco-system
UNCTAD’s Entrepreneurship Policy Framework as a base to enhance the entrepreneurship
eco-system and formulating a national entrepreneurship strategy
• Identifies policy objectives and options in the form of recommended actions • Proposes checklists, case studies and good practices • Provides an interactive online inventory of good practices • Offers a user guide and methods for policy monitoring and evaluation • Provides a set of indicators to measure progress
Malaysia: In its Vision 2020, and in the 10th Malaysia Plan 2011-2015 the Prime Minister identifies entrepreneurship as a key element to generate economic growth and achieve the goals premised on higher income, inclusiveness and sustainability.
Indonesia: Regional “Ease of Doing Business“ Benchmarks allow for more easily comparable conditions within the same country and creates peer pressure for reform
Jordan: Busines Development Centre hosts UNCTAD’s EMPRETEC programme for entrepreneurship development
www.unctad.org/epf
Uganda: CELAC - Collecting and Exchanging Local Agricultural Content – Initiative distributes information to farmers using mobile phones
unctad.org/epf
Nigeria: public-private partnership to improve access to finance to Women owned SMEs
Uzbekistan: 2011 State Programme, “The Year of Small Business and Entrepreneurship”
www.unctad.org/epf
1. Understand what are the existing policies that promote entrepreneurship
2. Evaluate the current business environment in which entrepreneurs start, operate and grow their businesses
3. Define the overall strategy of entrepreneurship in terms of priorities, objectives and targets based on the gaps identified
4. Design-focused initiatives to address gaps and achieve goals
5. Regularly monitor and evaluate the impact of the policy to ensure the relevance and effectiveness of implemented actions
The UNCTAD Policy Framework in action and using it as a guide:
1 month
Continuing Process
3-5 months
3-5 months
4-5 months
EMPRETEC: Key competences of
a successful entrepreneur
UNCTAD Programme on entrepreneurship development
What is EMPRETEC
Empretec is a United NaIons programme established by UNCTAD to promote the
creaIon of sustainable small-‐ and medium-‐sized enterprises (SMEs). Empretec works to
support entrepreneurs to build innovaIve and internaIonally
compeIIve SMEs
«emprendedores» (entrepreneurs)
«tecnologia» (technology)
EMPRETEC
Program evoluIon
Program was first introduced in ArgenIna
1988
2014
340,000 graduates 35 countries 25 years of success
Empretec Centers Worldwide
UNITED STATES of AMERICA
CANADA
ALASKA (USA)
MEXICO
COLOMBIA
VENEZUELA
BRAZIL PERU
BOLIVIA
HONDURAS
NICARAGUA
ECUADOR
GUYANA
SURINAME FRENCH GUIANA
COSTA RICA
PANAMA
GUATEMALA
CUBA
PARAGUAY
ARGENTINA
URUGUAY
CHILE
GREENLAND
ICELAND
UNITED KINGDOM
REPULIC OF IRELAND
NORWAY
SWEDEN
FINLAND
DENMARK
ESTONIA
LATVIA
LITHUANIA
POLAND BELARUS
GERMANY
CZECH REPUBLIC
NETHERLANDS
BELGIUM
FRANCE
SPAIN
PO
RTU
GA
L
SWITZ.
AUSTRIA
SLOVAKIA
HUNGARY
ROMANIA
BULGARIA
ITALY
UKRAINE
TURKEY GREECE
SYRIA
IRAQ
SAUDI ARABIA
YEMEN
OMAN UAE
EGYPT LIBYA
ALGERIA
MOROCCO TUNISIA
WESTERN SAHARA
MAURITANIA MALI
NIGER CHAD SUDAN
ETHIOPIA
SOMALIA UGANDA
SENEGAL
GUINEA
LIBERIA
COTE D’IVOIRE
BURKINA
GHANA
NIGERIA
CAMEROON
CENTRAL AFRICAN REPUBLIC
GABON CONGO DEMOCRATIC REPUBLIC OF
CONGO
KENYA
TANZANIA
ANGOLA
ZAMBIA
NAMIBIA
BOTSWANA
ZIMBABWE
REPUBLIC OF SOUTH
AFRICA
MADAGASCAR
RUSSIAN FEDERATION
KAZAKHSTAN
GEORGIA
IRAN
UZBEKISTAN
TURKMENISTAN
AFGHANISTAN
KYRGYZSTAN
TAHKISTAN
PAKISTAN
INDIA
CHINA
NEPAL
MYANMAR
THAILAND
SRI LANKA
MONGOLIA
NORTH KOREA
SOUTH KOREA JAPAN
TAIWAN
CAMBODIA
LAOS
VIETNAM
PHILIPPINES
MALAYSIA
INDONESIA PAPUA
NEW GUINEA
AUSTRALIA
NEW ZEALAND
EL SALVADOR
DOMINICAN REPUBLIC
MAURITIUS
BENIN
JORDAN
Methodology
Developed by Harvard University
Based on a behavioral approach to
entrepreneurship
Concentrates on a pracIcal approach to
educaIon
Training by changing entrepreneurs
mindset PracIcal tool for the development of
Personal Entrepreneurial
Competencies (PECs)
Achievement Cluster
• Opportunity-‐seeking and ini%a%ve • Persistence • Fulfilling commitments • Demand for efficiency and quality • Taking calculated risks
Planning Cluster
• Goal-‐se]ng • Informa%on-‐seeking • Systema%c planning and monitoring
Power Cluster
• Persuasion and networking • Independence and self-‐confidence
Personal Entrepreneurial Competencies (PECs)
Results (Brazil assessment)
Higher 73%
The same 21%
Lower 6%
Annual income before and a`er Empretec
Higher 61%
The same 31%
Lower 8%
Profit before and a`er Empretec
High 80%
Middle 18%
Low 2%
Level of influence of Empretec on your business
Yes 88%
No 12%
Is it easier to get a job a`er Empretec?
76% Made more tax payments aier compleIon of the program.
Reviews «The workshop was extremely useful, was a real discovery and inspira:on. It demonstrated the lifestyle, the development of which will help you to succeed. I think that the main thing in EMPRETEC – is crea:ng an atmosphere that allows you to understand your strengths and weaknesses, as well as the path of cul:va:on. The program has changed my way of thinking and the way I use my :me».
«I had the opportunity to prac:ce and improve many of my business skills. I realized who I was and how to do business, how to set different goals and to achieve them».
Thank you for acen%on!
For more information: www.empretec.net www.unctad.org http://unctad-worldinvestmentforum.org/ Contact: Alejandro.rubiashernandez@unctad.org