Global Entrepreneurship and Development Index 2011

Global Entrepreneurship and Development Index 2011

Elgar original reference

Zoltán J. Ács and László Szerb

The Global Entrepreneurship and Development Index both captures the context features of entrepreneurship and fills a gap in the measurement of development. Building on recent advances in entrepreneurship and economic development, the authors have created an index that offers a measure of the quality of the business formation process in 71 of the most important countries in the world.

Introduction

Zoltán J. Ács and László Szerb

Subjects: business and management, entrepreneurship, development studies, development economics, economics and finance, development economics, economics of entrepreneurship, regional economics, urban and regional studies, regional economics

Extract

The world today is at ‘ground zero’ in its struggle to create hundreds of innovative new products for the bottom of the pyramid and in the process create millions of jobs to deal with the new population bomb. This struggle has captured the aspirations of thousands of entrepreneurs around the world. Today, despite the global downturn, entrepreneurs are enjoying a renaissance the world over, according to a recent survey in The Economist magazine.1 Historically, all societies may have had a constant supply of entrepreneurial activity, but that activity was distributed unevenly among productive, unproductive and destructive entrepreneurship because of the incentive structure.2 To change the allocation of talent you need to change the incentive structure, and to change the incentive structure you need to strengthen institutions, and to strengthen institutions you need to fix government. Over 200 years ago, the United States invented the entrepreneurial society. The entrepreneurial society is based upon the conjecture that there are extraordinary possibilities in ordinary people, and that those who do not risk cannot win. This was echoed by the American Revolutionary war hero, Captain John Paul Jones, who when asked if he wanted quarters replied, ‘Sir, I have not yet begun to fight’. Entrepreneurship is about inventing the future. Today the entrepreneurial society is spreading around the world. The problem is that the future is here but it is just not widely distributed and we do not yet know how fast it is spreading. The dynamics of the entrepreneurial process can be vastly...