Economic Freedom of the Arab World ConferenceBeirut, Crowne Plaza Hotel, October 20 -21, 2011

Economic Freedoms, Entrepreneurship & Firm Growth

in Emerging Markets (EMs) Bahattin Karademir, Ph.D

Contents Contents

• Institutions, Markets and Firm Growth in EMs

• Entrepreneurship and Firm Growth in Turkey • Latest Economic Freedom Data of Turkey

• Future Projections

This Presentation This Presentation Draws From Draws From

`The Co-Evolution of the Institutional Environments and Internationalization Experiences of Turkish Internationalizing Firms’, Handbook of Institutional Approaches to International Business, forthcoming, (B.Karademir & A.Yaprak)

`The Emerging Market Multinationals’ Role in Facilitating Developed Country Multinationals’ Regional Expansion: A Critical Review of the Literature and Turkish MNC Examples`, Journal of World Business, 2011, 46(5): 438-446, (SSCI) (A.Yaprak & B. Karademir).

`The Internationalization of Emerging Market Business Groups: An Integrated Literature Review`, 2010, International Marketing Review, 2010, 27(2): 245-261, (SSCI) (A. Yaprak & B.Karademir). `How Do Business Groups Function and Evolve in Emerging Markets? The Case of Turkish Business Groups`, Advances in International Marketing, 2007, 17: 275-294 (A.Yaprak, B.Karademir & R.N. Osborn ).

Dr. Khanna ‘s current research focuses on understanding the drivers of entrepreneurship worldwide.

As part of the Emerging Giants project, he seeks to understand how to build world-class companies from emerging markets worldwide.

In 2008 he published a book on entrepreneurship, “Billions of Entrepreneurs: How China and India are Reshaping their Futures and Yours”, in which he compares entrepreneurship in China and India

(see, http://hbswk.hbs.edu/item/5766.html)

Prof. Tarun Khanna Harvard Business School

What makes him so hopeful What makes him so hopeful about the future of India?about the future of India?

The Institutional Setting & EntrepreneurshipThe Institutional Setting & Entrepreneurship

• Institutional environment defines and limits entrepreneurial opportunities:– Regulations and policies allocating resources

– Inadequate institutional environment can complicate new venture development

– More developed institutional environment with only restrictive regulation hampers firm founding

The Institutional SettingThe Institutional Setting, Markets, and , Markets, and EntrepreneurshipEntrepreneurship

Core Capabilities for Business GrowthWhich is more important in a free society?

Entrepreneurship & Entrepreneurship & Firm Growth in Turkey Firm Growth in Turkey

The Recovery to Nationhood Period The Recovery to Nationhood Period (1923 – 1930)(1923 – 1930)

The State-centered Development Period The State-centered Development Period (1930 – 1950)(1930 – 1950)

The Democratic Development Period The Democratic Development Period (1950 – 1960)(1950 – 1960)

The Planned Period The Planned Period (1960 – 1980)(1960 – 1980)

The Liberalization Period The Liberalization Period (1980 – 2000s) (1980 – 2000s)

International Entrepreneurship & International Entrepreneurship & Firm GrowthFirm Growth

Economic Freedoms in Turkey Economic Freedoms in Turkey

Turkey, Country Data Table, 2000-2009

Countries Showing The Greatest Improvement Countries Showing The Greatest Improvement

on Chain-Linked on Chain-Linked EFW Index, 2000-2009

Future ProjectionsFuture Projections

How to Nurture Entrepreneurship?How to Nurture Entrepreneurship?

Economic Freedoms

Political Freedoms

Cultural & Social Freedoms