This page deals with economics and business issues,concerning Latin America, and the global economy.-
Friday, September 14, 2012
The nature of entrepreneurship (II)
Entrepreneurship is a matching process between the abilities of entrepreneur, and the abilities of the economy to sustain economic policies aimed at supporting business creators . At the same time, it allows opportunity takers entrepreneurs , to go on with ideas which fit nicely with the economy when it is growing. Thus ,entrepreneurship is an adding up win –win game, which take into account not just the economic environment ,but also the best of endowment talents, to move on to try a better future . It is also a self reinforcing circle.
On the other side, Entrepreneurship generates positive externalities, as much as it implies less government dependent citizens, capable of making it on its own, when it comes to decide what to do with a set of natural talents we all have available.
The latest GEM (2011) reports, measure the score of Entrepreneurship factor conditions(EFC),for different countries grouped within three categories( Efficiency driven countries, natural resource driven countries, and innovation driven countries), to differentiate the impact of each variable on the conditions for entrepreneurship. The EFC index (1-5scale ) compares the importance of such factors for entrepreneurship. It measure nine variables, (Financial support, Public policies -Regulations ,Government programs, Primary and secondary education, R&D transferences, Commercial and Physical infrastructure, Internal market (dynamism , openness),Cultural values ).
All of these categories primary education, ranked as the lowest average(2/5).Then comes financial support, regulation and R&D transferences with 2,5/5. Almost 60% of all categories, are within the range of 2,5-2,8, which means that 55% (roughly) of them, do not get a score better than 3 out of 5.
The more complicated outcome, comes from the low score for primary education. This seems to suggest that education, is not designed to enhance natural entrepreneur abilities, but it might goes in the opposite direction instead. Chile and Mexico, included as efficiency driven countries, have on average of 1,8 and 1,9 respectively .However, theses scores are not different from the ones some European countries (Germany 1,9.France and Spain 1,6) get. The difference becomes important, with countries which have made of entrepreneurship a key variable for economic growth , such as Finland (2,3/5),South Korea 2,1/5).-
What are the implications?.Whether “opportunity taker” or “opportunity creator”, entrepreneur talents might be strengthened from the beginning of the education process. Those educational systems which start up at earlier stage to work with entrepreneurial abilities and its potential, have a higher chance of being a positive variable to influence decisively entrepreneurship .Besides, it allows to get better and more efficient result (lower cost) from public policies designed for entrepreneurship. So, when it comes to entrepreneurship ,a good education system designed for it , is the first step .-