Post on 03-Jul-2015
Global Entrepreneurship: Helping the Economy Recover
Dr. Lorrie McGovernLaFern K. BatieJonathan Norris
Overview
• Lorrie McGovern:
• Welcome & Introductions
• An introduction to Entrepreneurship
• Jon Norris:
• The top 10 global entrepreneurship rankings for 2011
• Comparison between Singapore, Hong Kong/China, Taiwan and the United States
• LaFern Batie:
• Best practices in entrepreneurship
• Panel Discussion
• Wen Chung: Panelist – Taiwan
• Anthony “Tony” Gaeto: Panelist - China
• Conclusion
ENTREPRENEUR
• http://www.merriam-webster.com/dictionary/entrepreneur
• One who organizes, manages, and assumes the risks of a business or enterprise
http://www.yourmoneydictionary.com/Entrepreneur.aspx
ENTREPRENEURSHIP
• http://www.businessdictionary.com/definition/entrepreneurship.html
• The capacity and willingness to undertake conception, organization, and management of a productive venture with all attendant risks, while seeking profit as a reward.
• Entrepreneurial spirit is characterized by innovation and risk-taking, and an essential component of a nation’s ability to succeed in an ever changing and more competitive global marketplace.
http://www.getentrepreneurial.com/entrepreneurship/what_is_true_entrepreneurship.html
http://www.sba.gov/
• Small business – 500 or fewer employees
• More than 50 percent of non-farm private GDP
• Approximately 27.5 million businesses; many family owned
• Employ approximately half of the private sector workforce
• Nearly all businesses start as a small business
• Critical to economic growth and job creation
• Hit hard by economic challenges during 2008 and 2009:
• Number of new start-ups dropped by approximately 11.8%
• Number of bankruptcies increased by approximately 40%
How Important Are Small Businesses to the U.S. Economy?
http://www.smallbusinessnotes.com/small-business-resources/how-important-are-small-businesses-to-the-us-economy.html
• Represent 99.7 percent of all employer firms.
• Employ half of all private sector employees.
• Pay 45 percent of total U.S. private payroll.
• Generated 60 to 80 percent of net new jobs annually over the last decade.
• Produce 13 to 14 times more patents per employee than large patenting firms. These patents are twice as likely as large firm patents to be among the one percent most cited.
• Are employers of 41 percent of high tech workers (such as scientists, engineers, and computer workers).
• Are 53 percent home-based and 3 percent franchises.
• 97 percent of all identified exporters.
Federal Reserve Chairman, Ben Bernake
• November 10, 2011
• Conference on Small Business Entrepreneurship
• Confirmed the importance of small businesses
• Critical component to drive the economic recovery.
• Small businesses support local communities.
• Agility of small business helps bring innovative products to the global marketplace.
• Entrepreneurship provides an option for people who have insufficient retirement savings.
http://blogs.wsj.com/in-charge/2011/11/10/bernanke-small-businesses-important-to-economic-recovery/
Where Will Jobs Come From?http://www.kauffman.org/uploadedfiles/where_will_the_jobs_come_from.pdf
• The Kauffman Foundation is the world's largest foundation devoted to entrepreneurship.
• Authors Litan and Stangler (Nov. 2009), census data reveals that two-thirds of new job growth comes from firms that are between one and five years old.
• Job creation comes from three sources:
• startups;
• young firms, ages one to five; and
• the largest and oldest companies.
• “New and young companies and the entrepreneurs that create them are the engines of job creation and eventual economic recovery.”
Exporting Advantageshttp://www.sba.gov/content/where-will-your-next-customer-come-look-around-world
• Ninety-six percent of the world’s consumers live outside of the United States
• Exporting helps businesses weather downturns in the domestic economy.
• U.S. businesses have a competitive advantage for producing high-quality, innovative goods and services.
• Advancements in e-commerce and logistics have lowered the costs of doing business overseas.
• Free trade agreements have opened up markets in Australia, Chile, Singapore, Jordan, Israel, Canada, Mexico, and Central America, creating more opportunities for U.S. businesses.
• What type of business can be a successful exporter: Any business
Exporting Mythshttp://www.sba.gov/content/where-will-your-next-customer-come-look-around-world#1
1. Too risky
2. Too complicated
3. Domestic market is secure and companies can depend on it
http://www.japanmattersforamerica.org/2011/06/us-asia-export-growth/
Global Entrepreneurship
• Critical to the development and well-being of society.
• Drives and shapes innovation, speeding up structural changes in the economy
• Create jobs
• Provides new competition, contributing directly to productivity
• A catalyst for economic growth and national competitiveness.
http://www.unleashingideas.org/
What Drives Entrepreneurship?
Global Entrepreneurship Monitor (GEM) groups the participating economies into three levels:
1. Factor Driven
2. Efficiency Driven
3. Innovation Driven
Factor-Driven Efficiency- Driven Innovation-Driven
Sub-Saharan AfricaAngola* Ghana, Uganda,
Zambia South Africa
Middle East/North Africa (MENA) - South Asia
Egypt*, Iran*, Pakistan, Saudi Arabia*, West Bank
and Gaza Tunisia Israel
Latin America and Caribbean
Jamaica*, Guatemala*, Bolivia
Argentina, Brazil, Chile*, Columbia, Costa Rica, Ecuador, Mexico,
Peru, Trinidad and Tobago*, Uruguay*
Eastern Europe
Bosnia and Herzegovina, Croatia*,
Hungary*, Latvia, Macedonia,
Montenegro, Romania, Russia, Turkey Slovenia
Asia Pacific VanuatuMalaysia, China,
Taiwan*Australia, Japan, Republic of
Korea
United States and Western Europe
Belguim, Denmark Finland, France, Germany, Greece,
Iceland, Ireland, Italy, Netherlands, Norway, Portugal,
Spain, Sweden, Switzerland, United Kingdom, United States
* In transition to the next stage
Entrepreneurial Measures
• World Bank’s Ease of Doing Business Rankings
http://www.doingbusiness.org/rankings
• Global Entrepreneurship Monitor Reports
http://www.gemconsortium.org/
So who in the world is Entrepreneurial?
EconomyEase of Doing Business Rank ▲
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Investors
Paying Taxes
Trading Across Borders
Enforcing Contracts
Resolving Insolvency
Singapore 1 4 3 5 14 8 2 4 1 12 2
Hong Kong SAR, China
2 5 1 4 57 4 3 3 2 5 16
New Zealand
3 1 2 31 3 4 1 36 27 10 18
United States
4 13 17 17 16 4 5 72 20 7 15
Denmark 5 31 10 13 11 24 29 14 7 32 9
Norway 6 41 60 12 8 48 24 27 9 4 4
United Kingdom
7 19 22 60 68 1 10 24 13 21 6
Korea, Rep. 8 24 26 11 71 8 79 38 4 2 13
Iceland 9 37 34 1 11 40 46 35 81 3 11Ireland 10 13 27 90 81 8 5 5 21 62 10
Comparing the United States with China/Hong-Kong, Singapore and Taiwan
• United States
• Singapore
• China
• Taiwan
Starting a Business
Economy YearEase of Doing Business Rank
Starting a Business -
Rank
Starting a Business -Procedures (number)
Starting a Business -
Time (days)
Starting a Business - Cost (% of income
per capita)
Starting a Business -Paid-in Min. Capital (% of income per capita)
China2012 91 151 14 38 3.5 100.4
Singapore2012 1 4 3 3 0.7 0
Taiwan, China 2012 25 16 3 10 2.5 0
United States 2012 4 13 6 6 1.4 0
Dealing with Construction Permits
Economy YearEase of Doing Business Rank
Dealing with Construction
Permits - Rank
Dealing with Construction
Permits -Procedures (number)
Dealing with Construction
Permits - Time (days)
Dealing with Construction Permits - Cost (% of income
per capita)
China2012 91 179 33 311 444.1
Singapore2012 1 3 11 26 18.1
Taiwan, China 2012 25 87 25 125 41.9
United States 2012 4 17 15 26 12.8
Registering Property
Economy YearEase of Doing Business Rank
Registering Property - Rank
Registering Property -Procedures (number)
Registering Property -Time (days)
Registering Property -Cost (% of property
value)
China2012 91 40 4 29 3.6
Singapore2012 1 14 3 5 2.8
Taiwan, China
2012 25 33 3 5 6.2
United States
2012 4 16 4 12 0.8
Getting Credit
Economy Year
Ease of Doing
Business Rank
Getting Credit -
Rank
Getting Credit -Strength of legal
rights index (0-10)
Getting Credit - Depth of credit information
index (0-6)
Getting Credit -Public registry coverage (% of
adults)
Getting Credit -Private bureau coverage (% of
adults)
China2012 91 67 6 4 82.5 0
Singapore2012 1 8 10 4 0 53.8
Taiwan, China 2012 25 67 5 5 0 90.9
United States 2012 4 4 9 6 0 100
Protecting Investors
Economy Year
Ease of Doing
Business Rank
Protecting Investors -
Rank
Protecting Investors - Extent of
disclosure index (0-10)
Protecting Investors -Extent of director
liability index (0-10)
Protecting Investors -Ease of shareholder
suits index (0-10)
Protecting Investors -Strength of investor protection index (0-
10)
China2012 91 97 10 1 4 5
Singapore2012 1 2 10 9 9 9.3
Taiwan, China 2012 25 79 7 4 5 5.3
United States 2012 4 5 7 9 9 8.3
Paying Taxes
Economy Year
Ease of Doing
Business Rank
Paying Taxes -Rank
Paying Taxes -Payments
(number per year)
Paying Taxes - Time (hours
per year)
Paying Taxes -
Profit tax (%)
Paying Taxes -Labor tax and contributions
(%)
Paying Taxes -
Other taxes (%)
Paying Taxes -Total tax rate (%
profit)
China2012 91 122 7 398 5.9 49.6 7.9 63.5
Singapore2012 1 4 5 84 6.5 15.9 4.7 27.1
Taiwan, China 2012 25 71 15 245 13.7 18.4 3.5 35.6
United States 2012 4 72 11 187 27.6 10 9.1 46.7
Trading Across Borders
Economy Year
Ease of Doing
Business Rank
Trading Across
Borders - Rank
Trading Across Borders -
Documents to export
(number)
Trading Across
Borders -Time to export (days)
Trading Across Borders - Cost to export (US$ per
container)
Trading Across Borders -
Documents to import (number)
Trading Across
Borders -Time to import (days)
Trading Across Borders - Cost to import (US$ per
container)
China
2012 91 60 8 21 500 5 24 545
Singapore2012 1 1 4 5 456 4 4 439
Taiwan, China 2012 25 23 6 12 655 6 12 720
United States 2012 4 20 4 6 1,050 5 5 1,315
Enforcing Contracts
Economy YearEase of Doing Business Rank
Enforcing Contracts -
Rank
Enforcing Contracts - Time
(days)
Enforcing Contracts - Cost (% of claim)
Enforcing Contracts -Procedures (number)
China2012 91 16 406 11.1 34
Singapore2012 1 12 150 25.8 21
Taiwan, China 2012 25 88 510 17.7 45
United States 2012 4 7 300 14.4 32
Resolving Insolvency
Economy YearEase of Doing Business Rank
Resolving Insolvency - Rank
Resolving Insolvency -Time (years)
Resolving Insolvency -Cost (% of estate)
Resolving Insolvency -Recovery rate (cents on the
dollar)
China2012 91 75 1.7 22 36.1
Singapore2012 1 2 0.8 1 91.3
Taiwan, China 2012 25 14 1.9 4 82.1
United States 2012 4 15 1.5 7 81.5
Best Practices In Entrepreneurship
Solid Business
Performance
Effective Leadership
Strategic Plan/
Roadmap
Alignment & Execution
Disciplined Organization
Business Development
Strong Collaboration
Effective Leadership
Change Leadership
Staff Development
Business Acumen
Executive Coaching
Copyright © 2011 The Batie Group. All Rights Reserved.
Strategic Planning: Road Map
Clear Vision
Regularly Measured Progress
Global
Identified Impact
Resource Planning
Reviewed and
Validated
Copyright © 2011 The Batie Group. All Rights Reserved.
Product/Service Planning
Copyright © 2011 The Batie Group. All Rights Reserved.
Planning
Marketing
Outlets
Partners
Top 100
When to
Launch
Demo-
graphics
Multiple Genera-
tions
B2B
B2C
Disciplined Organization
Systems
Processes
Repeatability
Information Assurance
Copyright © 2011 The Batie Group. All Rights Reserved.
Communications
Business Development
Branding • Internal/External
Marketing• Traditional/Social
Media
Value-based Selling
• Right-fit Market
Copyright © 2011 The Batie Group. All Rights Reserved.
Collaboration
Power Partnerships
Key Relationships
Professional Advisory Board
Mentors/Sponsors
Partnerships vs. Memberships
Copyright © 2011 The Batie Group. All Rights Reserved.
Panelists:
Dr. Wen Y Chung Anthony Gaeto
“Conclusions”
“Questions”