GEDI Analysis

Tõnis Arro

Ettekanne seminaril Tallinnas 10.04.2014

What is GEDI?• Global Entrepreneurship Development Index

– profile entrepreneurship ecosystem– identify bottlenecks– policy suggestions

• 15 pillars in categories: Entrepreneurial Aspirations, Attitudes, Abilities

• GEDI Index includes 120 countries

• Bases on different comparisons: against EU29, efficiency driven countries, selected peers…

GEDI processAnalytical Work, Core Group Debates

Profile Estonian ecosystem, identify initial list of bottleneck themes

Focus Group Discussions with Key StakeholdersDebate and enrich bottleneck themes, explore

bottleneck causes

Implementation TaskforcesAgree and prioritise policy action, implementation plan

Post-engagementImplementation, follow-up and monitoring (at least a year)

We are here!

ESTONIAN BOTTLENECKS:

Attitudes: Perceptions of Risks and Rewards Associated with Entrepreneurship

Skills: Skills for Entrepreneurship Capital: Capital Availability for Entrepreneurship Innovation: Lack of motivation of the vast

majority of companies to innovate. Low sophistication and value-added entrepreneurship and incentive regime for innovation

Some deeper insights:

Attitudes: Unclear understanding of what an entrepreneur does Entrepreneurs aren’t highly valued in the society Low risk appetite Relations aren’t valued in entrepreneurship Estonians don’t plan their career path

Some deeper insights Skills

Their development isn’t dealt with early enough Basic knowledge about entrepreneurship is low, of growth

as well Entrepreneurship education isn’t systematic Skills taught today don’t match the future economy needs and low development of soft skills

Some deeper insights Innovation

Comfort-zone driven entrepreneurship is dominant Low level and simplistic collaboration Lack of incentives for private money to invest into

innovation Not enough pull for innovation IP – low experience, incentives, system performance

Some deeper insightsCapital

Lack of smart specialized capital sources Pension funds don’t invest enough locally Inflexible and expensive tax system 1-4 MEUR is hard to raise in Estonia or through Estonian

company Growing deficiency of ambitious projects to invest in

Israel vs EstoniaIsrael Estonia

Potential entrepreneurs 24% 19.4%Nascent entrepreneurs 5.3% 8.8%New entrepreneurs 4.8% 4.5%Established companies 5.9% 5.0%Growth ambition 29% 27%New-to-market products 57% 49%High status of entrepreneurs 80% 59%

Thank you very much!