Embed Size (px)
Citation preview
Erkko Autio 2003
Influences on Entrepreneurship – Influences of Entrepreneurship
Congress on Enterprise Creation, Innovative Culture, and Change in the University
UPC Barcelona, March 13-14 2003
Erkko Autio, ProfessorInstitute of Strategy and International Business
Helsinki University of Technology
Erkko Autio 2003
Take-Home Messages
It is not entrepreneurship per se that is at issue – it is entrepreneurial growth
Growth-oriented entrepreneurship responds to policy measures
Entrepreneurial decision is not based on perception of skills – it is based on inspiration
High-potential entrepreneurs react to opportunities, life-style entrepreneurs do it anyways
0 2 4 6 8 10 12 14 16 18 20
J A P A N
R U SSI A
B E LG I U M
FR A NC E
H K ONG
C R OA T I A
SWE DE N
C T A I P E
P OLA ND
FI NLA ND
SP A I N
NE T HE R L
SLOV E NI
G E R M A NY
U K
I T A LY
SI NG A P O
DE NM A R K
S A FR I C
HU NG A R Y
I SR A E L
SWI T ZE R
A U ST R A L
NOR WA Y
C A NA DA
I R E LA ND
U S
I C E LA ND
C H I NA
M E X I C O
B R A ZI L
N ZE A LA
A R G E NT I
K OR E A
C H I LE
I ND I A
T HA I LA N
Spain: 4,6%Finland: 4,5%
Thailand: 18,9%India: 17,9%Chile: 15,7%South Korea: 14,5%…China: 12,3%Iceland: 11,3%USA: 10,5%Ireland: 9,1%
Japan: 1,8%
France: 3,2%Belgium: 3,0%
Total Entrepreneurial Activity 2002(Source: Global Entrepreneurship Monitor GEM)
0 0,5 1 1,5 2 2,5 3 3,5 4 4,5
S A FR I C
I ND I A
R U SSI A
J A P A N
P OLA ND
B R A ZI L
M E X I C O
A R G E NT I
H K ONG
FR A NC E
SWE DE N
B E LG I U M
SP A I N
C R OA T I A
T HA I LA N
I T A LY
FI NLA ND
NE T HE R L
HU NG A R Y
U S
C T A I P E
DE NM A R K
U K
SWI T ZE R
I SR A E L
C H I NA
NOR WA Y
SI NG A P O
A U ST R A L
G E R M A NY
SLOV E NI
I R E LA ND
C A NA DA
K OR E A
C H I LE
N ZE A LA
I C E LA ND
Spain: 0,64%
Iceland: 3,97%New Zealand: 3,15%Chile: 2,93%South Korea: 2,11%Canada: 1,67%…US: 0,81%
South Africa: 0%
Japan: 0,16%Russia: 0,12%India: 0,04%
’High-Potential’ Activity 2002(Source: Global Entrepreneurship Monitor GEM)> 20 jobs in 5 yearsat least some market creation> 1% exports
Finland: 0,71%
0 0,1 0,2 0,3 0,4 0,5 0,6 0,7 0,8 0,9 1
CHINA
SLOVENI
CROATIA
POLAND
SWITZER
J APAN
N ZEALA
HUNGARY
BELGIUM
S AFRIC
ITALY
FRANCE
GERMANY
UK
AUSTRAL
IRELAND
NORWAY
FINLAND
SPAIN
ICELAND
DENMARK
NETHERL
CHILE
H KONG
SWEDEN
SINGAPO
US
CANADA
ISRAEL
KOREA
South Korea: 0,97%Israel: 0,73%Canada: 0,41%US: 0,40%Singapore: 0,36%
Spain: 0,13%Finland: 0,12%
NZ: 0,04%Japan: 0,035%Switzerland: 0,033%…China: 0,01%
Classic Domestic VC 2001 Per GDP(Source: Global Entrepreneurship Monitor GEM)
Erkko Autio 2003
www.gemconsortium.org
In Spain:Instituto de Empresa, Madrid
www.ie.edu
Alicia Coduras Martinez Rachida Justo Julio DeCastroJoseph PistruiAlicia Coduras
Erkko Autio 2003
Entrepreneurial Growth is Highly Concentrated
Our Study of Finnish Gazelles
5 Gazelles (1%) generated 35% of the employment of the entire population, 44% of sales
Gazelles also appear to be concentrated in few growth agglomerations, notably in the Helsinki region
TBNFs were not over-represented in terms of numbers but were so in terms of sales
Erkko Autio 2003
Few Gazelles Generate the Bulk Impact
EMPCAT COUNT94 COUNT97 SUM94 SUM97 %94 %970-4 379 179 383,6 479,7 46,80 % 9,60 %5-9 23 143 151,3 883,6 18,40 % 17,70 %10-19 6 46 88,6 601,8 10,80 % 12,00 %20-49 2 32 64,0 938,0 7,80 % 18,80 %50-100 2 5 133,0 353,0 16,20 % 7,10 %100-249 0 2 0,0 312,0 0,00 % 6,20 %250-499 0 2 0,0 761,0 0,00 % 15,20 %500- 0 1 0,0 670,0 0,00 % 13,40 %TOTAL 412 410 820,5 4999,1 100 % 100 %
Erkko Autio 2003
What Explains Growth Entrepreneurship?
TEA02Hi-Growth
TEA02 TEA02NEC
TEA02OPP
WCY 2002 Overall Competitiveness
0.36* -0.23 -0.48** 0.01
WCY 2002 Government Efficiency
0.43** -0.10 -0.39* 0.12
WCY 2002 Business Efficiency 0.40* -0.20 -0.45** 0.03
GCR 2001 Overall Competitiveness
0.37* -0.35* -0.58** -0.10
GCR 2001 Technology Index 0.29+ -0.36* -0.61** -0.12
GCR 2001 Public Institutions Index
0.43** -0.37* -0.60** -0.11
GCR 2001 ICT Index 0.38* -0.47** -0.63** -0.26
Erkko Autio 2003
Explaining High-Potential E...
Indicators from GEM 2002 National Expert Interviews TEA02HG
Finance: Availability of equity funding 0,04Government regulations favor entrepreneurship 0,31+Primary and secondary education support for entrepreneurship
0,32+
R&D and technology transfer index 0,20Market openness for entrepreneurial firms 0,50**Physical infrastructure index 0,24Population entrepreneurial capacity index 0,35*Population entrepreneurial motivation index 0,07IPR protection index 0,41*Support for women entrepreneurship 0,33+
Erkko Autio 2003
Explaining High-Potential E...
Indicators from GEM 2002 Adult Population Survey TEA02HG
GEM Business Angel Prevalence Index 2002 0,56**
Respondent’s Job Involves Start-Up Activity 0,39*
Respondent Personally Knows an Entrepreneur 0,50**
Respondent Thinks Possesses Skills for Start-Up 0,36*
Respondent Thinks There Will be Good Opportunities for New Start-Up in Next 6 Months
0,26
Erkko Autio 2003
Explaining Entrepreneurial Intent
Motivation (prospect) theories Intent = ƒ(subjective norm, perceived
behavioral control, attitude toward behavior)“entrepreneurship as calculated option”“I start a firm because I believe that I can
succeed”
Cognitive theories intent = ƒ(role models, perceived behavioral
logic, social norm)“entrepreneurship as a cool option”“I start a firm because I will be respected”
Erkko Autio 2003
Motivation Approach to E Support
Focus on teaching business skills & theoriesBusiness planningOpportunity recognitionNew venture financeNew venture strategyNew venture growthEmphasis on lectures and cases
Invest in support facilitiesScience parksSoft loans, subsidiesVenture capital
Erkko Autio 2003
Cognition Approach to E Support
Focus on teaching social norms and cultureEmphasis on team assignmentsEmphasis on company assignments and
participative, ‘shadowing’ projectsEmphasis on realistic and relevant role modelsEmphasis on ‘non-teaching’ activities
– New venture clubs– Business plan competitions
Invest in support softwareNetwork buildingSocial activities
Erkko Autio 2003
Optimal Mix Balances Cognition and Motivation
CognitionProvision of role models, E cultureEnhances individual’s willingness to see and
create opportunityEnhances individual’s willingness to jump at
opportunityCreates entrepreneurial environment
MotivationProvision of skills and competenciesEnhances individual’s ability to evaluate
opportunityEnhances individual’s ability to capitalize on
opportunityIs important for growth
Erkko Autio 2003
Our Philosophy
NO: formal planning
emphasis project-based goals small business
management understanding small
business focus on product,
technology ”small is beautiful”
YES: enacting the future time-paced planning velocity-based metrics venture management
”living the rhythm” of the business
focus on market, value potential
“small is ugly”:Growth is Good
Erkko Autio 2003
Firms to Which HUT ISIB Has Actively Contributed
HUT ISIB helps organize the VentureCup Finland with McKinsey & Company, Helsinki School of Econ-omics, and the Swedish School of Economics in Helsinki
Firms started by HUT ISIB students or graduatesValue Created:Value Created: €€0,1Bn0,1Bn + €0,1Bn+ €0,1Bn =€0,2Bn=€0,2Bn
Throughput model of the Otaniemi Cluster
FIRM BIRTH FIRM STABILISATION FIRM EXPANSION
RESEARCH INSTITUTES
HELSINKI UNIVERSITY OF TECHNOLOGY (HUT), RESEARCH CENTRE OF FINLAND (VTT) ETC.
SPINNOprogram
OLARTEKOTECH
INNOPOLIESPOO,HELSINKIETC.
INCUBATORS
DEVELOPMENT PROGRAMS and support measures
COMMERCIALSUCCESS
Furthergrowth inUusimaaregion
BUSINESSGENERATORS
InnoTULIservices
Mentorprogram
Venture Capitallike Spinno-seed
Software Product BusinessAdaptive Microsystems
consultingevaluation networks growth supportarea infrastructures
© Otaniemi Science Park and Innopoli
Regional Centres of Expertise:
Erkko Autio 2003
The Business Plan Pipeline
NVDNVF$
EF
European Business Plan Competitionwith LBS, Insead, IESE, Stockholm,
Koblenz, Imperial, Cranfield, etc
1 Academic Year
Fall
SpringSpring
Venture Cup is a 3-Stage, Open, Venture Cup is a 3-Stage, Open, Business Plan CompetitionBusiness Plan Competition
From anIdea...
…to a Firm
Stage 1 Business
Idea
Focus
Awards
Stage 2Business PlanDraft
Marketingstrategy
10*€ 3000
Marketingstrategy
10*€ 3000
Stage 3Full Business
Plan
Full scale plan
Financing
€ 30 000€ 20 000€ 10 000
Full scale plan
Financing
€ 30 000€ 20 000€ 10 000
September-November
September-November
February-May
February-May
November-January
November-January
Product orserviceconcept
Customerbenefit
10*€ 1000
Product orserviceconcept
Customerbenefit
10*€ 1000TotalFIM 100 000
Erkko Autio 2003
To Repeat...
It is not entrepreneurship per se that is at issue – it is entrepreneurial growthInvest in both skills and motivation
Growth-oriented entrepreneurship responds to policy measuresActive, long-term policy should emphasize both
support and socialization Entrepreneurial decision is not based on
perception of skills – it is based on inspirationPromote an image of coolness
High-potential entrepreneurs react to opportunities, life-style entrepreneurs do it anywaysDemonstrate a path to riches
Erkko Autio 2003
Appendices
Erkko Autio 2003
Institute of Strategy and International Business
Leading institute in Finland in Entrepre-neurship, Venturing, Strategy, International Business
Recently, increasing focus on mCommerce
Knowledge-creation initiatives with McKinsey&Company, Durlacher, and othersB2B mCommerce3G Opportunity
Space
Erkko Autio 2003
Fostering Entrepreneurial Activity at HUT
EducationOutreach
Research
Erkko Autio 2003
Entrepreneurship Teaching at HUT
Enterprise Forum since 1975 New Business Creation since 1990
link with the Spinno incubator program Current courses transplanted from LBS,
including content and teacher Currently New Venture Development, New
Venture Finance, Enterprise Forum, Principles of Strategic Management, Strategic Management of Technology and Innovation, Telecommunications Management
Major in Telecommunications Venturing since 1998
0 2000 4000 6000 8000 10000 12000
ICELAND
S AFRIC
FINLAND
J APAN
CHINA
KOREA
BELGIUM
FRANCE
NORWAY
IRELAND
SWITZER
GERMANY
N ZEALA
HUNGARY
POLAND
DENMARK
SLOVENI
ISRAEL
SWEDEN
UK
AUSTRAL
CHILE
SPAIN
NETHERL
CANADA
ITALY
SINGAPO
H KONG
US
US: 10695kHong Kong: 7068kSingapore: 3540kItaly: 3066k
Spain: 2319k
China: 665kJapan: 627kFinland: 469kSouth Africa: 442kIceland: 400k
VC Per Receiving Firm 2001 (kUSD)(Source: Global Entrepreneurship Monitor GEM)
0 0,01 0,02 0,03 0,04 0,05 0,06 0,07 0,08
J A P A N
R U SSI A
FR A NC E
C R OA T I A
P OLA ND
I T A LY
B R A ZI L
B E LG I U M
NE T HE R L
U K
HU NGA R Y
I SR A E L
A U ST R A L
A R GE NT I
H K ONG
SWE DE N
FI NLA ND
SP A I N
SLOV E NI
GE R M A NY
DE NM A R K
S A FR I C
C A NA DA
I R E LA ND
I NDI A
C T A I P E
SI NGA P O
SWI T ZE R
N ZE A LA
C HI LE
NOR WA Y
U S
C H I NA
K OR E A
T HA I LA N
M E X I C O
I C E LA ND
Iceland: 7%Mexico: 6%Thailand: 5%US: 5%South Korea: 5%Norway: 5%
Japan: 1%Russia: 1%France: 1%
Micro Angels 2002(Source: Global Entrepreneurship Monitor GEM)
Spain: 3%Finland: 3%
