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GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Jonathan OrtmansPresident, Global Entrepreneurship Week
Senior Fellow, Kauffman Foundation
Chair, Global Entrepreneurship Congress,
Milan, 2015
email: [email protected]
twitter: @jortmans
THE GLOBAL STARTUP
REVOLUTION 3.0
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
The Entrepreneurs Era:
A New Calling to Do Good & Do Well
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
People: The Glass Half Full Generation
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Talent: “Let Us Be Global”
• Immigration: core to successful
ecosystems in the U.S.
• Silicon Valley: Kauffman
study found that over half
(52.4%) of Silicon Valley
startups had one or more
immigrants as a key founder.
• A free movement of risk-takers
from any city or culture
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Trends: The Science of Startups
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
• Oceans Eleven: TeamCo-founder dating – importance of an
experienced co-founder with unique
knowledge of the industry to make a
disruptive idea into an innovation
• Networks:Relationships bring talent, mentorship, smart
money, markets
• Iterative and ScientificTest vision continuously - validate, build your
plane in the air, measure, learn…do it again
• Bootstrapping/Affording to FailBe lean as long as you can – and remember
venture capital is not the prime agent for
inducing entrepreneurship
Trends: The Science of Startups
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Ecosystems: A Renewed Human Spirit
Creating Value for Society
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Ecosystem Basics
• Entrepreneurial ecosystems are breathing
a renewed human spirit committed long-
term to creating value for society
• Ecosystems grow organically
• There is no recipe or formula
• You have to be in it for the long-term
• Communities celebrate the success of
anyone in the village -- all boats rise on an
incoming tide.
• We are all “feeders” (government,
university, non-profits, big companies, VCs,
angel investors) to entrepreneurs birthing
the new.
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Research & Policy:
The New Face of Government
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
• Net job growth occurs only through startup firms. In the U.S. for example,
from 1980-2008, firms less than five years old accounted for all net job growth
• As older firms recede, high growth firms create the new wealth and jobs by
injecting dynamism
• The top 1 percent of all companies (measured by employment growth),
generates 40 percent of new jobs, and the vast majority of these firms are no
more than five years old
• While older companies lose 1 million jobs annually, new firms add an
average of 3 million jobs in their first year
• Of companies less than one year old, those with one to four employees have
created, on average, more than 1 million jobs per year over the past three
decades; those with five to nine employees have added, on average, half a
million jobs per year. - "The Return of Business Creation", July 2013
Startups and the Economy
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
National Strategies: What to Do?
• Focus government on better ground
rules/incentives and fewer programs
• Promote the entrepreneurial culture by
legitimizing entrepreneurship as a worthy
career path
• Think strategies not plans – firm formation is
messy and grand central planning is
antithetical to innovation and organic
entrepreneurial activity
• Tolerate that entrepreneurship is
unpredictable
You can measure it but you cannot predict
outcomes
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
“Beta Time” for Experimenting with
Different Policy Levers• Welcoming immigrant founders and
models for a more free flow of high
skilled co-founders
• Lowering barriers to entry and growth
and protecting new entrants from unfair
practices by incumbent market leaders
• Enabling new models for early stage
financing (e.g. JOBS act in US re
crowdfunding)
• Tax and other incentives (e.g. payroll
tax holidays) for new and young firms
• Policies to accelerate formation of new
ideas in their universities
• Other basic rule of law issues around
corruption, IP protection etc.
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Future Threats
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
Performance and Hype:
Boom in Programs to Reduced Effect
Entrepreneurship
Programs and ,
Courses
Today
Overall
Rate of
Business
Creation
Number
1980
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
• Myth 1: Small business plays the most important role in growing the economy.
• Fact: The age of the firm is a more important variable than the size of the firm.
• Myth 2: Most entrepreneurs are 23-year-olds starting tech companies in their local
coffee shop or their bedroom.
• Fact: The 'peak age' for starting a company is in the mid to late 30s, early 40s.
• Myth 3: Silicon Valley can be copied by other communities and countries looking to
create a hotbed of high-tech startups.
• Fact: Silicon Valley is a very unique place that's never going to be replicated.
• Myth 4: Business incubators play an important role in launching early-stage companies.
• Fact: Most research shows that incubators are not effective at all for actually
producing companies.
Myth-busting
GLOBAL ENTREPRENEURSHIP NETWORK | 150 Countries. One Entrepreneurial Ecosystem. |
www.weareGEN.co
What is Next
• Better data – what data should
governments be collecting? How
should that data be used?
• Better intervention evaluation and
sharing of data around program
performance
• International collaboration on data
standards for new firm activity
• Increased attention on scale-up
• Mapping Startup Ecosystems – “the
first step in changing the ecosystem is
to know and understand what it is”