Mike Herrington

VIII Astana Economic Forum 21st & 22nd May 2015

• SMMEs in many countries contribute 50%-55% to GDP and from 50% - 60% of countries employment

• Entrepreneurship in any form is the vehicle for: • creating new jobs• generating revenue• advancing innovation• enhancing productivity• improving business models and processes

• Despite the challenges they face, entrepreneurs have never been more vital to our economy than they are today

• Understanding and encouraging entrepreneurship in a country is critical for all organisations both big and small

Why Entrepreneurship & SMME Development are Important?

...companies are

- downsizing

- restructuring

- retrenching

- government cannot afford to employ more people

Therefore you need to create your own employment and help to create jobs

with entrepreneurship research that is

- rigorously designed and continually refined through the collaboration of a network of academic researchers from across the globe

- optimized locally with central oversight

- harmonized across multiple diverse economies

Global Entrepreneurship Monitor (GEM)

Large Businesses are not creating jobs...

...with entrepreneurship research that is

- rigorously designed and continually refined through the collaboration of a network of academic researchers from across the globe

- optimized locally with central oversight

- harmonized across multiple diverse economies

Global Entrepreneurship Monitor (GEM)

Addressing the need to know more about entrepreneurs around the world...

GEM in 1997

GEM in 2014

GEM Study

• Most authoritative and informative study in the world

• Used by policy makers in planning small business policies

• GEM studies individuals, their profile and characteristics such as perceptions, attitudes, aspirations and intentions

• Fledgling businesses that have not yet started• New business start-ups• Established business owners

What makes GEM Unique?

GEM Measures

•TEA…early-stage entrepreneurial activity - nascent - new businesses

•GEM distinguishes between - opportunity - necessity - age - gender

GEM Objectives

• To measure differences in the levels of entrepreneurial activity between countries

• To uncover factors leading to the enhancement and hindrance of entrepreneurship

• To suggest policies that may enhance the national level of entrepreneurship

Total entrepreneurial activity rates in GEM countries, 2014

Policy

Necessity-Driven

businesses

High-growth businesses

Opportunity-driven

businesses

Policy

Necessity-Driven

businesses

High-growth businesses

Opportunity-driven

businesses

Policy

Necessity-Driven

businesses

High-growth

businesses

Opportunity-driven

businesses